2. In year 2007 193 new stores opened their doors and 16 closed. Expansion and maintaining of financial stability are H&M's strategic goals. (exhibit 1)
3. In the last 5 years the revenues raised by 73%, including value-added tax and the earnings per share increased by 139% (exhibit 2)
7. Total Asset Turnover ratio indicates the effectiveness of the firm’s use of its total asset base.
8. In order to depict the firm’s operating performance, Total Asset Turnover ratio should always be compared to the industry average because it varies greatly between different industries.
9.
10. No existence for the inventories item for the company in the annual reports.Exhibit 1<br />Store in and outside Sweden<br />Turnover in and outside Sweden<br />(1) H&M website <br />
![Financial Management Prof. Pio Verges <br /> Abubakr Al-kaf (Bakry) <br />MISSION <br />“Fashion and quality at the best price”.<br />About the company<br />H & M Hennes & Mauritz AB is a Swedish clothing company well known mostly between young (15-30) fashion (and not) sensitive people. <br />Today H&M operates in 35 countries and has 74,000 employees all working to the same philosophy: to bring you fashion and quality at the best price.<br />H&M offers fashion and quality at the best price with a broad and varied selection for women, men, teens and children. Each of the departments contains a number of different concepts.<br />The brand is well known for its fast changing fashion at very cheap price. Although the brand is associated with low prices, its customer is not necessary only a price sensitive type. One of the strategies of the company was to build brand awareness based on collaboration with well-known names in the fashion world. In this way H&M shift its position in the market from low price to a new typology of retailer: The fast (changing) fashion. <br />Due to its low prices people can spend monthly the same amount of money as with luxury brands, but buying more items at a reasonable quality. The fashion sensitive consumer can change wardrobe and style every month and throughway one-month-old items.<br /> <br />Performance in the past<br />,[object Object]](https://image.slidesharecdn.com/mid-termexam1-100429084019-phpapp02/85/Mid-term-exam1-1-320.jpg)
