Analysis of Financial Statement Introduction The purpose of creating this report is entirely involved with the financial analysis based on the financial statements or other relevant sources. To go further with the topic, the report needs a specific company to make progress (McMillan, 2010). The selection of the company had come across a certain criteria which are that the company should not be some financial service provider and it should be listed under FTSE. Now FTSE is share price index and it is the subsidiary group of the London Stock Exchange. The stock indices of it are widely used by the world and also the analytical firms as well (Ohlson, 2000). So the stock indices are particular thing that can measure the high performance of the business according to the regulation of company law of UK. The report should be published in a form that can be helpful for the senior executives of the company. Here in this report the certain financial and operation perspectives of the specifically selected company will be discussed with making the proper analysis (Saunders, 2010). The performed analysis done in this report is strongly based on the calculation of ratios and the reflection that those have to say about the company. As per the description and the regarding on the basis of criteria maintained, the company of Sports Direct International plc is selected as it is assumed that the company is appropriate to investigate further with the report. The following portion of the report will be based on this certain company and part of analysis will be done accordingly. 1. Brief Review Sports Direct International plc is a group of British retailing industry and the name of the founder of this company is Mike Ashley who situated this company in 1982. The company is a multinational company and it proved to be the largest sporting retailer in the country of UK and it has overall 500 stores worldwide. Sporting goods and equipments are sold by the company (Weygandt, 2009). The large number of sporting brand is covered by the company and also does the business on the basis of sportsdirect.com brand. The speciality of the company is that it operates under the low margin and the company owned some of the other retailers as well as part of its business operations (Yang & Ma, 2013). 4 The primary aims and focus of the company is to make the highest possible profits and prove themselves as the best sporting company in the world and establish the company’s recognition in the global aspect. The future aim of the company is concentrated on opening 400 more stores in the part of the mainland Europe. So the company is looking for the opportunity to do business in the parts of Europe and keeping the fact on their side to expand globally. The focus of the company is that way can be described as ambitious (Shim, Siegel, Shim & Shim, 2012). The discussion above can clearly suggest that the company is planning for the expansion in the European market as it is confirmed by the statement of the company’s chief executive, David Forsey. Another part of the company’s growth strategy consists of closing down their small store across the country and opening larger stores in their place (Saunders, 2010). The entire planning, growth strategy and the business operation which deals with future aims and objectives of the company is clearly observed as to stay ahead of the other market competitors and remain at the top position where all the competitive advantages can be gained. Also the factor of making stronger investment is the part of the company’s future plans (Plummer, 2010). 2. Analysis of Financial Performance The purpose of this section is to give a close attention to the financial perspective of Sports Direct Plc by computing and comparison of the ratios to its perspective years of operation. Profitability, efficiency and liquidity are fields what are chosen in this analysis for reflecting the effects based on the ratios. A maximum extent of current three years is considered for this purpose (Palmer, 2003). The company is currently operating in its sporting goods sector in UK and come out to be the largest sporting retailer in UK. According to the relevant reports from the sources considering the profile of the company, it is revealed that the company is currently holding the top position in UK in terms of the sporting retailer with the 61.7% holding in the market. In an addition to the sporting sector, Sports Direct has spread its other services in the market as well including the dealings with the fashionable brands for capturing the global market(McMillan, 2010). According to the annual reports published by the company, it is observed that the company is currently giving priority of focus to the non-sporting items and 5 non-UK business. As found in the annual report of the company for the year of 2013, the company’s revenue from the sales in non-UK market is £20.8 billion with t
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