Case Analysis of Kingfisher PLC’s Operational Quality Based on the Perspective of Financial Report

Financial statements are an effective carrier of accounting information, which can reflect the financial status, operating results and cash flow of listed companies in the most authentic and comprehensive way. They have a strong reference value for the internal management of the enterprise and external investors, creditors and other stakeholders. This paper analyzes the industry environment of Kingfisher Plc. Through Porter’s five forces model and SWOT analysis model. Then relying on the financial statements, analyze the financial ratio of Kingfisher Plc from four aspects: profitability ratio, liquidity ratio, efficiency ratio, and investment ratio, and compare the ratios with the three-year average of the home improvement industry to evaluate its operating quality. Give investment advice to investors and propose measures for company development. Committed to serving as a reference for companies, stakeholders and potential investors. Through the analysis, this paper believes that Kingfisher’s profitability and solvency performance is relatively good, but it has no advantages in operating efficiency, and finally holds an optimistic attitude towards Kingfisher’s operating quality.