2.1 The gap between the rich and the poor
India has become a major economic power. However, the gap between the rich and the poor in India is not negligible. In big cities, like New Delhi and Bangalore, there are many people living with high-income. However, approximately 35% of the people live on less than $1 a day.
2.2 The operational and financial reasons
India is the world's 6th largest
1. With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? Why? What do comparisons indicate about Inditex’s relative operating economics? Its relative capital efficiency?
GAP H&M Benetton Inditex
ROIC -0.15% 24.16% 11.20% 27.24%
Return on sales -0.06% 9.60% 7.05% 10.46%
COGS/sales 7
Operate income. When current sales decrease, clothing company will get more severe financial problem because of increase in inventory.
2. Company Analysis
1. ABERCROMBIE & FITCH (NYSE: ANF)
1-1. Introduction
Abercrombie & Fitch (A&F) is a specialty retailer, operating stores selling casual apparel such as knit shirts, graphic t-shirts, jeans, woven shirts and personal care and other accesso
ROA and ROE of HSBC
For the next asset analysis we are considering data from the period 2004-2009. First let´s take a look to the principal ratios of the company. ROA ratio for HSBC has decreased since 2007 and this tendency has continued indicating that the bank efficiency to produce profits has diminished. This is mainly due to the rise in operating expenses by 12% that reflected increased