Financial Ratios Analysis and Benchmarking of Ikea Group

3645 Words15 Pages
FINANCIAL RATIOS ANALYSIS AND BENCHMARKING OF IKEA GROUP Özgür Öztürk Coursework of Financial Reporting & Management Accounting Unit Unit Leader: Mr. Ioannis Pasmatzis Executive MBA Program City College, The University Of Sheffield Cohort 20, Istanbul February, 2013 Executive Summary Financial ratio analysis is one of most efficient way to analyses and benchmarking. Liquidity, financial leverage, inventory turnover and profitability of Ikea Group are studied. By applying trend analysis 2010 to 2012, healthy and sustainable grown in near all ratios are observed. By benchmarking with another high revenue furniture retailer Bed Bath & Beyond Inc., expect dept-equity ratio, all ratios of Ikea Group is greater than their industrial average. Table of Contents 1. Introduction 2. Literature Review 2.1. Analysis of Financial Statements 2.1.1. Ratio Analysis 2.1.1.1. Short-Term Solvency 2.1.1.2. Long-Term Solvency 2.1.1.3. Asset Management 2.1.1.4. Profitability 3. Analysis of Financial Statements of IKEA 4. Benchmarking of Financial Statements of IKEA 5. Conclusion 6. References 1. Introduction IKEA is a privately held, international home products company that designs and sells ready-to-assemble furniture (such as beds, chairs, and desks), appliances, and home accessories. INGKA Holding BV is the parent company for all Ikea group companies, including the industrial group Swedwood, which manufactures Ikea furniture. INGKA Holding BV is wholly owned by Stichting INGKA Foundation. The group operates in Europe, the US and Asia. It is headquartered in Helsingborg, Sweden and employs about 139,000 people (Company Profile: Ikea Group, 2012) The founder of IKEA, Ingvar Kamprad wanted an ownership structure that stands for independence, long-term approach and continuity. That is why the IKEA Group, since1982, is

More about Financial Ratios Analysis and Benchmarking of Ikea Group

Open Document