Ratio Analysis of Two-Year Financial Statements:
Woolworths Limited
Title: Ratio analysis of 2-year financial statements: Woolworths Limited
Assignment Topic
Evaluate the performance of a company through critical analysis of its published financial statements over the two latest years, as follows:
Locate, extract and analyse data from the published financial statements to provide a comprehensive analysis of a company’s operations and performance;
Structure an argument about performance based on the analysis of five aspects of performance evaluation:
Profitability
Efficiency
Short-term solvency
Long-term solvency
Market based ratios
Present a clear, well-structured report using appropriate style and language.
Word count: 2 337 (from the start of the Introduction to the end of the Conclusion)
Executive summary
Woolworths Limited is a public retail company, listed on the Australian Stock Exchange. It has been in operation since 1924 and employs more than 190 000 people. Over the past ten years Woolworths’ wealth has been increasing steadily and this paper analyses its performance over the past two years, i.e. FY ended June 2013 and June 2012. The analysis is conducted by means of common financial ratios to specifically evaluate the company’s profitability, efficiency, short-term and long-term solvency and market-based performance.
Overall, Woolworths is performing well (over the two year period in question) in terms of profits and solvency. It has a stable position in the market with a reasonably fair P/E ratio considering its time in the retail industry. Main improvement areas are in efficiency and recommendations as to what could and should be enriched are provided. Other suggestions and recommendations are also pointed out as the analysis progresses.
Table of contents
1. Introduction
Woolworths Limited is an Australian retail company operating in the food, petrol, general merchandise, home improvement and hotels industry (Woolworths Limited: “Who we are” 2014). Woolworths operates since 1924 and
Assignment Topic
Evaluate the performance of a company through critical analysis of its published financial statements over the two latest years, as follows:
Locate, extract and analyse data from the published financial statements to provide a comprehensive analysis of a company’s operations and performance;
Structure an argument about performance based on the analysis of five aspects of performance evaluation:
Profitability
Efficiency
Short-term solvency
Long-term solvency
Market based ratios
Present a clear, well-structured report using appropriate style and language.
Word count: 2 337 (from the start of the Introduction to the end of the Conclusion)
Executive summary
Woolworths Limited is a public retail company, listed on the Australian Stock Exchange. It has been in operation since 1924 and employs more than 190 000 people. Over the past ten years Woolworths’ wealth has been increasing steadily and this paper analyses its performance over the past two years, i.e. FY ended June 2013 and June 2012. The analysis is conducted by means of common financial ratios to specifically evaluate the company’s profitability, efficiency, short-term and long-term solvency and market-based performance.
Overall, Woolworths is performing well (over the two year period in question) in terms of profits and solvency. It has a stable position in the market with a reasonably fair P/E ratio considering its time in the retail industry. Main improvement areas are in efficiency and recommendations as to what could and should be enriched are provided. Other suggestions and recommendations are also pointed out as the analysis progresses.
Table of contents
1. Introduction
Woolworths Limited is an Australian retail company operating in the food, petrol, general merchandise, home improvement and hotels industry (Woolworths Limited: “Who we are” 2014). Woolworths operates since 1924 and