1
Concordia University – John Molson School of
Business ACCO 310 Financial Reporting I with
complete solutions 2026
Table of Contents
Introduction:
Stock market analysis:
Presentation of Financial Statements: 3
Common Size Analysis: 6
Ratio Analysis: 14
Accounting Policies: 17
Conclusion: 20
References: 21
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Introduction
Aritzia, a Canadian fashion retail company, was founded in Vancouver in 1984. The
brand quickly became popular across Canada, and expanded to the United States. There are 68
stores located in Canada and 52 in the USA. Aritzia's main focus is on women's clothes. They
design, produce, and sell casual clothing, activewear, formal attire, and winter clothes. The
company operates within the highly competitive women's fashion industry, with main
competitors like Zara, H&M, Lululemon, and others. Aritzia focuses more on quality in its
business model, by providing classic and long-lasting pieces, and therefore differentiates itself
from fast fashion brands like Garage or H&M. Companies like Zara often change their inventory
and collection, while Aritizia presents itself as affordable luxury with timeless products. With
brands like Lululemon that also focus on quality, Aritzia provides lower prices to be able to
compete. With great success in Canada, Aritizia is planning to continue expanding to the United
States.
Stock market analysis
Aritzia trades on TSX (Toronto Stock Exchange) under the symbol "ATZ”. The company
went public in 2016 on October 16 with the Initial Public Offering of CAD 16. For the past 8
years, the company's stock has been increasing, with some fluctuations. Stock prices had a non-
significant drop in 2020 as a consequence of the pandemic. For the next few years, the stock
price was increasing and reached CAD 59.75 at its peak. However, in 2023 the stock
experienced a significant drop of around 24% in a single day after the company reported
earnings below market expectations. Economic challenges and decreasing consumer traffic
caused this effect. Aritzia fixed its issues and the stock price rebounded. In the second half of
2024, it came to CAD 45.90. Aritzia’s market capitalization is approximately CAD 5.14 billion,
with a valuation above the industry average, reflecting investor confidence in its growth
potential.
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Presentation of Financial Statements
Statement of Financial Positions
The balance sheet gives an overview of Aritzia’s assets, liabilities, and shareholders’
equity at the end of the 2023 fiscal year. Aritzia divides its assets into two main categories:
current and concurrent. In the current assets, the most significant items are cash and inventory.
Cash and cash equivalents saw a large increase, reaching $163 million, which indicates that the
company has more liquidity available. On the other hand, inventory dropped to $340 million,
likely due to better inventory management or aligning stock levels with demand. Aritzia values
its inventory at a lower cost or market value, as required by IFRS standards. Among non-current
assets, property and equipment grew due to investments in new stores and infrastructure, while
right-of-use assets represent the leased locations, showing Aritzia’s choice to lease rather than
buy many of its properties.
Liabilities are also divided into current and non-current categories. Accounts payable and
accrued liabilities are the main components of current liabilities, covering trade costs and other
operational expenses. Lease liabilities make up a big part of the non-current liabilities,
highlighting Aritzia’s strategy of leasing the majority of its boutiques and distribution centres.
This leasing approach allows Aritzia flexibility to expand without the need for large upfront
property investments.
Concordia University – John Molson School of
Business ACCO 310 Financial Reporting I with
complete solutions 2026
Table of Contents
Introduction:
Stock market analysis:
Presentation of Financial Statements: 3
Common Size Analysis: 6
Ratio Analysis: 14
Accounting Policies: 17
Conclusion: 20
References: 21
, 2
Introduction
Aritzia, a Canadian fashion retail company, was founded in Vancouver in 1984. The
brand quickly became popular across Canada, and expanded to the United States. There are 68
stores located in Canada and 52 in the USA. Aritzia's main focus is on women's clothes. They
design, produce, and sell casual clothing, activewear, formal attire, and winter clothes. The
company operates within the highly competitive women's fashion industry, with main
competitors like Zara, H&M, Lululemon, and others. Aritzia focuses more on quality in its
business model, by providing classic and long-lasting pieces, and therefore differentiates itself
from fast fashion brands like Garage or H&M. Companies like Zara often change their inventory
and collection, while Aritizia presents itself as affordable luxury with timeless products. With
brands like Lululemon that also focus on quality, Aritzia provides lower prices to be able to
compete. With great success in Canada, Aritizia is planning to continue expanding to the United
States.
Stock market analysis
Aritzia trades on TSX (Toronto Stock Exchange) under the symbol "ATZ”. The company
went public in 2016 on October 16 with the Initial Public Offering of CAD 16. For the past 8
years, the company's stock has been increasing, with some fluctuations. Stock prices had a non-
significant drop in 2020 as a consequence of the pandemic. For the next few years, the stock
price was increasing and reached CAD 59.75 at its peak. However, in 2023 the stock
experienced a significant drop of around 24% in a single day after the company reported
earnings below market expectations. Economic challenges and decreasing consumer traffic
caused this effect. Aritzia fixed its issues and the stock price rebounded. In the second half of
2024, it came to CAD 45.90. Aritzia’s market capitalization is approximately CAD 5.14 billion,
with a valuation above the industry average, reflecting investor confidence in its growth
potential.
, 3
Presentation of Financial Statements
Statement of Financial Positions
The balance sheet gives an overview of Aritzia’s assets, liabilities, and shareholders’
equity at the end of the 2023 fiscal year. Aritzia divides its assets into two main categories:
current and concurrent. In the current assets, the most significant items are cash and inventory.
Cash and cash equivalents saw a large increase, reaching $163 million, which indicates that the
company has more liquidity available. On the other hand, inventory dropped to $340 million,
likely due to better inventory management or aligning stock levels with demand. Aritzia values
its inventory at a lower cost or market value, as required by IFRS standards. Among non-current
assets, property and equipment grew due to investments in new stores and infrastructure, while
right-of-use assets represent the leased locations, showing Aritzia’s choice to lease rather than
buy many of its properties.
Liabilities are also divided into current and non-current categories. Accounts payable and
accrued liabilities are the main components of current liabilities, covering trade costs and other
operational expenses. Lease liabilities make up a big part of the non-current liabilities,
highlighting Aritzia’s strategy of leasing the majority of its boutiques and distribution centres.
This leasing approach allows Aritzia flexibility to expand without the need for large upfront
property investments.
