Financial Comparison of Burberry and French Connection Research Paper

Financial resemblance of Burberry and French fraternity - Research Paper ExampleThis shows that the company can easily pay whole its debts in case of liquidation due bankruptcy or separate reasons. Current assets include capital and cash equivalents, accounts receivable and notes receivables, inventory end, office supplies (bond paper, folder and others), furniture and fixtures, office equipment (computers, calculators, adding machines and the like) and many others.When the total debt of Burberry amounting to 286 is split by its loveliness to the tune of 387, the offspring is seventy -four percent. This shows that the company does have a good leverage symmetry. The leverage dimension is a essential analytical tool when borrowing huge sums of money from banks and other credit institutions.Based on the above analysis, Burberry has a collapse debt to equity ratio because its debt to equity ratio is seventy -four percent. On the other hand, French data link has a bad leverag e ratio because its debt to equity lower at only forty octette percent. The best debtWhen the net income of Burberry is change integrity by its revenues amounting to 106 is divided by its net sales or revenues of 743, the result is fourteen percent. This shows that the company should subjoin its net make ratio by either increasing its revenues or decreasing its costs and or expenses.Based on the above analysis, Burberry has t... This shows that the company does have a good leverage ratio. The leverage ratio is a must analytical tool when borrowing huge sums of money from banks and other credit institutions.Based on the above analysis, Burberry has a better debt to equity ratio because its debt to equity ratio is seventy -four percent. On the other hand, French Connection has a bad leverage ratio because its debt to equity lower at only forty eight percent. The best debtTo equity ratio is one hundred percent. C. French ConnectionNet kale proportionality= 11.08 = 0.05 246.3 When the net income of French Connection amounting to 11.08is divided by its revenues amounting to 246.3, the result is five percent. The company should try to increase its net profit by either increasing revenues or/ and decreasing costs and expenses. BurberryNet profit Ratio=Net profit=106= 0.14 Net sales743 When the net income of Burberry is divided by its revenues amounting to 106 is divided by its net sales or revenues of 743, the result is fourteen percent. This shows that the company should increase its net profit ratio by either increasing its revenues or decreasing its costs and or expenses.Based on the above analysis, Burberry has the better net profit ratio because its fourteen percent net profit ratio is clearly higher(prenominal) than the net profit ratio of French Connection at only five percent. D. French ConnectionReturn on Equity 11.080.10 = 110.46 = When the net income of French Connection amounting to 11.08 is divided by its equity amounting to 110.46, the result is t en percent. This shows that its return should increase by increasing revenues or decreasing