Final Research Paper Throughout this course, you have been working on your research paper on a company you have chosen. For this assignment, you will consolidate the parts of the assignment you wrote

Zara company financial management unit 2

Rebecca L Parks

Zara company financial management unit 2

Zara Company listing

According to Inditex. (n.d.), the Zara Company is normally listed under the NYSE: MS (New York stock exchange market)

The last three years' activities

Over the past three years, the company's performance has shown and negative trajectory on the financial performance. In 2022 Q2, the performance was 12,997 million dollars; in 2021, the performance was 13,156 million dollars, while in 2020, the performance was 14,582 million dollars. The reduced performance over the years can be attributed to inflation since, in 2019 and 2018, the performance was the highest at 18,424 and 17,453, respectively. Therefore as inflation increases, the performance has been deteriorating. However, for the past three years, the average performance was 3,578 million dollars. Inditex. (n.d.).

In 2019 the highest performance record was at 18,424 million dollars. At the same time, the lowest performance is in 2022 at 12,997 million dollars. Inditex. (n.d.).

Stock split for the company

Yes, Zara Company has attempted to split its stock one time historically. This occurred on July 30, 2014. According to the market cap website, the company was to be split into two multiples leading to a 2:1 split. The cumulating multiple was to become two times. Additionally, the company has several brands, including Pull and Bea, Bershaka, and Massimo Dutti. Inditex. (n.d.).

Outstanding, Authorized, and Issued stock

Based on the reports from the company's market cap of November 2022, the outstanding shares of Zara Company were 6 225, 859,138 dollars. However, this is a 0.01% increase from 2021. We should also understand that over the years, the outstanding shares have remained almost constant over the years since is 2017 to 2022, and the range of increase has been between 0.03% and 0.01%. However, the organization's management has not made public the issued an authorized stock for analysis. MarketWatch. (2022, November 8).

Venturing into the company

Before investing in a company, it is first essential to understand its health by analyzing the historical records to make relevant insights. Generally, I would not venture into Zara Company by investing since, over the years, there have been negative shifts. Between 2016 and 2019, there was a positive trajectory, but from 2020 to 2022, the stock has been reducing relatively. This can be attributed to covid19 pandemic and inflation affecting global companies. MarketWatch. (2022, November 8).

Comparison

Among the major competitors of Zara is Uniqlo, which has been reporting increased profits despite Zara having reduced profitability. The company has reported increased sales due to addressing the weaknesses from the Chinese markers and a gradual decline of the yen. For example, in the past twelve months, the company has posted a 297 billion yen profit or 2.02 billion dollars which is a steady increase from 249 billion yen a few months earlier. Therefore although Zara has been complaining of economic recession during the pandemic and Russian war, Uniqlo has been applying different tactics to keep the huge market share. Therefore I would consider investing in Uniqlo Company due to the gradual improvements and increased profitability. R. (2022, October 13).

References

Inditex. (n.d.). Inditex (IDEXY) - Basic Shares Outstanding. Retrieved November 8, 2022, from https://companiesmarketcap.com/inditex/shares-outstanding/

Inditex. (n.d.). Inditex (IDEXY) - Stock Split History. Retrieved November 8, 2022, from https://companiesmarketcap.com/inditex/stock-splits/

MarketWatch. (2022, November 8). ZARA Stock Price | Zara Investment (Holding) Co. Ltd. Stock Quote (Amman Stock Exchange). Retrieved November 8, 2022, from https://www.marketwatch.com/investing/stock/zara?countrycode=jo

R. (2022, October 13). Uniqlo operator posts record annual profit despite China slump. Reuters. Retrieved November 8, 2022, from https://www.reuters.com/business/retail-consumer/uniqlo-operator-fast-retailing-posts-19-jump-full-year-profit-2022-10-13/