Woolworths Financial Ratio Report Analysis - Accounting Report
Woolworths Financial Ratio Report
Liquidity, Solvency and Profitability
Abstract
This report consists of ratio calculation and analysis of Woolworths’ liquidity, solvency as well as profitability. Liquidity ratios include current ratio, quick asset ratio and inventory turnover. Solvency ratios include debt to total asset and interest coverage. Profitability ratios include return on owners’ equity, payout ratio, return on assets, return on sales, asset turnover, cash return on sales and operating expense ratio.
Ratio Calculation | Formula | Calculation $M | Results | | | 2012 | 2011 | 2012 | 2011 | Current Ratio | Current AssetsCurrent Liabilities | 5,802.16,766.2 | 6,326.98.022.2 | 0.86 : 1 | 0.79 : 1 | Quick Asset Ratio | current assets-inventorycurrent liabilities | 5,802.1-(376.7+3,698.3)6,766.2 | 6,326.9-(93.9+3,736.6)8,022.2 | 0.26 : 1 | 0.31 : 1 | Inventory Turnover | cost of salesaverage inventory | 40,792.43,698.3+3,736.52 | 39,050.03,736.5+3,438.82 | 10.97 x | 10.88 x | Debt to Total Assets | total debtstotal assets | 13,134.821,581.1 × 100% | 12,982.620,828.4 × 100% | 59.61% | 62.33% | Interest Coverage | EBITinterest expense | 3,352.1408.0 | 3,254.4355.7 | 8.22 x | 9.15 x | Return on Owners’ Equity | profitaverage owners'equity | 1,816.78,466.3+7,845.82 × 100% | 2,124.07,845.8+7,817.72 × 100% | 22.73% | 27.12% | Payout Ratio | drawings (dividends)profit | 126148.67 × 100%cents per share | 122174.64 × 100%cents per share | 84.73% | 69.85% | Return on Assets | profitaverage assets | 1,816.721,581.1+20,828.42 × 100% | 2,124.020,828.4+18,487.32 × 100% | 8.57% | 10.80% | Return on Sales | profitnet sales | 1,816.755,268.7 ×100% | 2,124.052,745.7 × 100% | 3.29% | 4.03% | Assets Turnover | net salesaverage assets | 55,268.721,581.1+20,828.42 | 52,745.720,828.4+18,487.32 | 2.61 x | 2.68 x | Operating Expense Ratio | operating expensesnet sales | 45,43355,268.7 × 100% | 43,33352,745.7 × 100% | 82.2% | 82.15% | Cash
Liquidity, Solvency and Profitability
Abstract
This report consists of ratio calculation and analysis of Woolworths’ liquidity, solvency as well as profitability. Liquidity ratios include current ratio, quick asset ratio and inventory turnover. Solvency ratios include debt to total asset and interest coverage. Profitability ratios include return on owners’ equity, payout ratio, return on assets, return on sales, asset turnover, cash return on sales and operating expense ratio.
Ratio Calculation | Formula | Calculation $M | Results | | | 2012 | 2011 | 2012 | 2011 | Current Ratio | Current AssetsCurrent Liabilities | 5,802.16,766.2 | 6,326.98.022.2 | 0.86 : 1 | 0.79 : 1 | Quick Asset Ratio | current assets-inventorycurrent liabilities | 5,802.1-(376.7+3,698.3)6,766.2 | 6,326.9-(93.9+3,736.6)8,022.2 | 0.26 : 1 | 0.31 : 1 | Inventory Turnover | cost of salesaverage inventory | 40,792.43,698.3+3,736.52 | 39,050.03,736.5+3,438.82 | 10.97 x | 10.88 x | Debt to Total Assets | total debtstotal assets | 13,134.821,581.1 × 100% | 12,982.620,828.4 × 100% | 59.61% | 62.33% | Interest Coverage | EBITinterest expense | 3,352.1408.0 | 3,254.4355.7 | 8.22 x | 9.15 x | Return on Owners’ Equity | profitaverage owners'equity | 1,816.78,466.3+7,845.82 × 100% | 2,124.07,845.8+7,817.72 × 100% | 22.73% | 27.12% | Payout Ratio | drawings (dividends)profit | 126148.67 × 100%cents per share | 122174.64 × 100%cents per share | 84.73% | 69.85% | Return on Assets | profitaverage assets | 1,816.721,581.1+20,828.42 × 100% | 2,124.020,828.4+18,487.32 × 100% | 8.57% | 10.80% | Return on Sales | profitnet sales | 1,816.755,268.7 ×100% | 2,124.052,745.7 × 100% | 3.29% | 4.03% | Assets Turnover | net salesaverage assets | 55,268.721,581.1+20,828.42 | 52,745.720,828.4+18,487.32 | 2.61 x | 2.68 x | Operating Expense Ratio | operating expensesnet sales | 45,43355,268.7 × 100% | 43,33352,745.7 × 100% | 82.2% | 82.15% | Cash
Bibliography: Carey, P.( 2009). Principles of Accounting and Finance (2nd ed.). Australia: John Wiley & Sons. Hoggett, J., Edwards, L. Medlin, J, and Tilling, M. (2009). Accounting (8th ed.). Australia: John Wiley and Sons. Woolworths Limited. (2010). 2010 Annual Report. Retrieved 1 September 2013 from http://www.woolworthslimited.com.au/icms_docs/129900_Annual_Report_2010.pdf Woolworths Limited. (2011). 2011 Annual Report. Retrieved 1 September 2013 from http://www.woolworthslimited.com.au/icms_docs/129899_Annual_Report_2011.pdf Woolworths Limited. (2012). 2012 Annual Report. Retrieved 1 September 2013 from http://www.woolworthslimited.com.au/annualreport/2012/pdf/WW_AR12_Full.pdf