Primark Financial Analysis Essay

Q1:
Financial statements are an important tool to record and summarise company financial situation and it can provide lots of information to the users of the accounts. And financial statements usually include income statements, balance sheets, statements of retained earnings and cash flows. Comparability, relevance, reliability and understandability are the four main characteristics which lead to useful financial information. In general, there are two main users who are interested in accounting information, internal users and external users respectively.

External users include investors, customers, suppliers, government, competitors, lenders, and community representatives while internal users include managers, employees and owners.

Evaluating from the external users, from investment analysts’ point of view, Analysts like comparative statements because the effect of

Q2: Primark is a chain store which sells fashion cloth with an affordable price, and it offers a wide range of products, stocking everything from baby to elders, from men to women, from home ware to accessories. As a company, its main purpose is to maximize its profit, Primark as well.

There is a timeline about the development of Primark.

1969 - first store opens in Dublin, Ireland. Ireland now has 38 Primark (Penneys branded) stores in total.
1973 - first store opens in Derby, UK. The UK now has 174 Primark stores in total.
May 2006 - Madrid, Spain. Spain now has 42 Primark stores in total.
Dec 2008 - Rotterdam, The Netherlands. The Netherlands now has 15 Primark stores in total.
May 2009 - stores open in Lisbon, Portugal and Bremen, Germany
Dec 2009 - Liege, Belgium opens, our first store in the country
Sep 2012 - Innsbruck, Austria.
Dec 2013 - sees our first store open in France, in Marseilles.
Spring 2014 - Two new stores open in Paris,