Financial insolvency hurts IKEA company operation and reputation, causing losses to investors. It is therefore important for managers, owners, and analysts to operate an efficient diagnostic system for detecting a companys insolvency. Financial analysis is vital to analyse IKEAs performance and predict the probability of IKEA going bankrupt.

1)Perform a financial analysis using the necessary financial statements of the company (such as trend analysis and ratio analysis over the 3 most recent years). You are to comment on the implications of the results and contrast the results with industry averages/benchmarks where necessary / or available. (22 marks)

Must include the 3 years annual report as appendix and referenced where needed.

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