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HM Phân Tích Báo Cáo Tài Chính
HM Phân Tích Báo Cáo Tài Chính
a) BALANCE SHEET
Horizontal analysis
H&M Hennes & Mauritz AB
Balance Sheeet (Adapted)
December 30, 2020 and 2019
Increase (Decrease)
SEK M 2020 2019 Amount Percentage
Assets
Current assets:
Cash and cash equivalents 16,540 12,312 4,228 34.3%
Other current assets 48,818 49,960 (1,142) (2.3%)
Total current assets 65,358 62,272 3,086 4.9%
Non-current assets:
Property, plant and equipment 91,174 40,892 50,282 122.9%
Intangible non-current assets 10,432 11,448 (1,016) (8.9%)
Other non-current assets 7,407 5,873 1,534 26.1%
Total non-current assets 109,013 58,213 50,800 87.3%
Total assets 174,371 120,485 53,886 44.7%
Liabilities
Current liabilities:
Accrued expenses and prepaid income 19,881 25,719 (5,838) (22.7%)
Other interest-bearing liabilities 13,275 147 13,128 8930.6%
Other current liabilities 23,101 21,970 1,131 5.1%
Total current liabilities 56,257 47,836 8,421 17.6%
Long-term liabilities:
Liabilities to credit institutions 8,433 10,413 (1,980) (19.01%)
Other interest-bearing liabilities 50,458 234 50,224 21,463.2%
Other long-term liabilities 4,600 4,933 (333) (6.7%)
Total long-term liabilities 63,491 15,580 47,911 307.5%
Total liabilities 119,748 63,416 56,332 88.8%
Equity
Share capital 207 207 0 0%
Other equity 54,416 56,862 (2,446) (4.3%)
Total equity 54,623 57,069 (2,446) (4.3%)
Total equity and liabilities 174,371 120,485 53,886 44.7%
H&M’s comparative balance sheet shows slowly growth in assets, with total assets increasing by
44.7%. The H&M group’s liquidity is very good. As of 30 November 2020 cash and cash
equivalents amounted to SEK 16,540 m (12,312). Cash and cash equivalents plus undrawn credit
facilities totalled SEK 46,595 m (24,169). The improvement in liquidity is partly driven by
greater focus on the H&M group’s working capital, including the streamlining during the year of
invoice management and the payment process for suppliers of products to the group
Non-current assets increased more than current assets at 87.3%. Property, plant and equipment
recorded strongly grow about SEK 50,282 m. The increase is mainly due to the transition to
IFRS 16. The property, plant and equipment are largely distributed between the countries in
accordance with each country’s level of sales. In Sweden property, plant and equipment
amounted to SEK 2,265 m (2,758) as of 30 November 2020.
H&M's liabilities grew faster. Total liabilities increased by 88.8%. (ptich interest bearing
liabilities)
H&M’s equity had down-ward trend in 2020, fell by 4.3% compared to 2019.
Vertical analysis
H&M Hennes & Mauritz AB
Balance Sheeet (Adapted)
December 30, 2020 and 2019
2020 2019
SEK M Amount Percent of Total Amount Percent of Total
Assets
Current assets:
Cash and cash equivalents 16,540 9.5% 12,312 10.2%
Other current assets 48,818 27.9% 49,960 41.5%
Total current assets 65,358 37.5% 62,272 51.7%
Non-current assets:
Property, plant and equipment 91,174 52.3% 40,892 33.9%
Intangible non-current assets 10,432 5.9% 11,448 9.5%
Other non-current assets 7,407 4.2% 5,873 4.9%
Total non-current assets 109,013 62.5% 58,213 48.3%
Total assets 174,371 100% 120,485 100%
Liabilities
Current liabilities:
Accrued expenses and prepaid income 19,881 11.4% 25,719 21.3%
Other interest-bearing liabilities 13,275 7.6% 147 0.12%
Other current liabilities 23,101 13.2% 21,970 18.2%
Total current liabilities 56,257 32.3% 47,836 39.7%
Long-term liabilities:
Liabilities to credit institutions 8,433 4.8% 10,413 8.6%
Other interest-bearing liabilities 50,458 28.9% 234 0.2%
Other long-term liabilities 4,600 2.6% 4,933 4.1%
Total long-term liabilities 63,491 36.4% 15,580 12.9%
Total liabilities 119,748 68.7% 63,416 52.6%
Equity
Share capital 207 0.1% 207 0.2%
Other equity 54,416 31.2% 56,862 47.2%
Total equity 54,623 31.3% 57,069 47.4%
Total equity and liabilities 174,371 100% 120,485 100%
The vertical analysis of H&M’s balance sheet reveals several interesting things:
- Current assets make up 37.5% of total assets in 2020 and 51.7% of total assets in 2019.
The 37.5% of current assets represents a great deal of liquidity and a significant increase
in liquidity from 2019 to 2020.
- Property, plant, and equipment make up only 33.9% of total assets in 2019 but 52.3% of
total assets in 2020.
- Total liabilities are 68.7% of total assets in 2020, but were 52.6% of total assets in 2013.
-
b) INCOME STATEMENT
Horizontal analysis
H&M Hennes & Mauritz AB
Income Statement (Adapted)
December 30, 2020 and 2019
Increase (Decrease)
SEK M 2020 2019 Amount Percentage
Revenues 187,031 232,755 (45,724) (19.6%)
Cost of goods sold (93,487) (110,302) 16,815 (15.2%)
GROSS PROFIT 93,544 122,453 (28,909) (23.6%)
Selling expenses (81,425) (96,279) 14,854 (15.4%)
Administrative expenses (9,020) (8,828) (192) 2.2%
OPERATING PROFIT 3,099 17,346 (14,247) (82.1%)
Interest expense and similar items (1,299) (331) (968) 292.4%
Interest income and similar items 252 376 (124) (32.9%)
PROFIT AFTER FINANCIAL ITEMS 2,052 17,391 (15,339) (88.2%)
Tax (809) (3,948) 3,139 (79.5%)
NET INCOME 1,243 13,443 (12,200) (90.7%)
Vertical analysis
H&M Hennes & Mauritz AB
Income Statement (Adapted)
December 30, 2020 and 2019
2020 2019
SEK M Amount Percent Amount Percent of
of Total Total
Revenues 187,031 100% 232,755 100%
Cost of goods sold (93,487) (49.9%) (110,302) (47.4%)
GROSS PROFIT 93,544 50.01% 122,453 52.6%
Selling expenses (81,425) (43.5%) (96,279) (41.4%)
Administrative expenses (9,020) (4.8%) (8,828) (3.8%)
OPERATING PROFIT 3,099 1.6% 17,346 7.4%
Interest expense and similar items (1,299) (0.7%) (331) (0.1%)
Interest income and similar items 252 0.1% 376 0.2%
PROFIT AFTER FINANCIAL ITEMS 2,052 1.1% 17,391 7.5%
Tax (809) (0.43%) (3,948) 1.7%
NET INCOME 1,243 0.7% 13,443 5.8%
Cash Ratio = Cash & Cash equivalents / Current Liabilities = 16,540/56,257 = 0.294
financial difficulty. the business does not have enough cash and cash equivalents to
cover all short-term liabilities
Market-to-book ratio = market value per share / book value per share