ECONOMIC AND FINANCIAL ANALYSIS IN MULTINATIONALS. INDITEX GROUP CASE

Abstract

The article aims to identify the capacity of the Inditex Business Group to generate profits and meet its short, medium and long-term obligations, and present mechanisms that contribute to generating value for the Group. The analysis is carried out based on the Group's annual accounts based on the 2016 annual report and the Inditex strategic plan 2014 - 2018. A detailed analysis of the financial statements, vertical and horizontal analysis, analysis by ratios based on the review is carried out of patrimonial masses, the position of solvency, equity balance, liquidity, availability, indebtedness and economic profitability. The cash and equivalents to face the usual operations is sufficient and is not exposed to a liquidity risk, but in the case of financing need access to credit policies, loans or other types of instruments which keeps them covered by contingencies.