Financial Analysis of Westpac Bank

Running head: Business finance 1
Business finance

2
Business finance
Abstract
The report is presented on the financial analysis of the company and in that various evaluations
have been made. There has been the identification of the information in relation to the Westpac
and in that coverage is made of all the factors involved. The performance evaluation is then
performed in which the calculation of ratios have been undertaken. There has been the
consideration of the incomes and revenues made by the business and with that profitability is
analyzed. The cost of equity and the weighted average cost of capital has been determined so that
interest expense to be met by the company is identified. The share price movement is determined
and represented by the help of graph. Also, the capital structure and weights of equity and debt in
that have been determined.

3
Business finance
Table of Contents
Abstract............................................................................................................................................2
Introduction......................................................................................................................................4
Financial analysis of Westpac Bank................................................................................................4
Company’s description................................................................................................................4
Calculation of the financial ratios and their analysis...................................................................5
Graph showing share price movement........................................................................................7
Calculation of cost of equity........................................................................................................8
Identification of the capital structure...........................................................................................9
Consulting report...........................................................................................................................11
Introduction................................................................................................................................11
Financial analysis.......................................................................................................................11
Conclusion.................................................................................................................................12
Conclusion.....................................................................................................................................12
References......................................................................................................................................13

4
Business finance
Introduction
In this report, there will be carrying out of the financial analysis of the Westpac Bank. The
complete description of the company and its operations will be made. In that, the areas of
operations will be identified which are being undertaken by the Company. The comparative
advantages which are available with the company will have to be discussed and they all will be
discussed in the report. There will be an identification of the trend which is being followed and
for that trend analysis will be carried out. The performance of the company will be evaluated
together with efficiency. There will be an undertaking of the ratio analysis for the same by which
the evaluation will be made and the representation of the same will be made in the report. The
price of the shares in the market keep on changing in a regular manner and for that, it is required
that there shall be the identification of the movement which is taking place. In the report, the
share price movement for the past years will be considered and evaluated with the help of graph.
The comparison will also be made under this with the all ordinaries index. There will be a
calculation of the cost of equity for the company by using the provided information. The capital
structure will be determined and with that, there will be ascertainment of the weighted average
cost of capital. The consulting report will be formulated with the help of all the findings in which
recommendations will also be provided.
Financial analysis of Westpac Bank
Company’s description
In Australia, there are several banks which are operating and the oldest among them is Westpac
and is counted as the big banking organization. It is also operating in New Zealand and there also
is considered as the largest bank. The company is involved in providing several types of financial
and banking services to its customers (Westpac, 2019). In this institutional, consumer and
business banking are involved together with the wealth management services. The main aim of
the company is to provide its consumers with the required services which will help them in
growing further. There will be confidence that money will be safe and that way investment can
be made in an easy manner. The business is classified into five divisions in which unique