Abstract
This report is the financial analysis of a EU-listed consolidated group, the Carrefour group. This company, operating on the retail sector, seemed to be an interesting company for us to analyze. Majority of the companies in this industry are characterized by a negative working capital requirement (WCR) due to cash payment from customers and deferred payment to its suppliers, which makes their financial structure particular. Other particularities of companies from the retail sector include:
- Nearly a third of the assets are tangible assets.
- Stocks: Given the area of hypermarkets, stocks are very significant
- Receivables: in the retail domain, customers are individuals, therefore they pay immediately in cash, check or credit card. Payment delays are kept to a minimum.
- Payables: Like any company, Carrefour pays its suppliers with a delay of 30, 60, 90 or 120 days; in other words it has already sold the property it purchased even before paying a penny.
-Debt
- Net cash: It is largely positive.
In the first part of this report, we will present the activity and profitability of the group. In the second part, we will study the specific financial structure, the debt and the financing of the company.
