Financial Analysis Report of Wesfarmers Limited

Running head:FINANCIAL ANALYSIS
Financial Analysis
Name of the Student:
Name of the University:
Author’s Note:

ACCOUNTING FINANCIAL ANALYSIS REPORT1
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Ownership Structure of Company...............................................................................................2
Graphical Representation.............................................................................................................4
Share Price Analysis of Wesfarmers...........................................................................................5
Scenario Analysis........................................................................................................................6
Recommendations............................................................................................................................8
References......................................................................................................................................10
Appendix........................................................................................................................................12

ACCOUNTING FINANCIAL ANALYSIS REPORT2
Introduction
The companies that have been selected for the purpose of analysis is the Wesfarmers
Limited and IDP Education Limited. The company is trading as a Public Limited Company
whereby the company is traded in the Australian Stock Exchange with its trading symbol as
“WES”. Wesfarmers is an Australian based Conglomerate Company that is headquartered in the
Perth, Australian Region with the various set of business operations that can be well observed in
the Retail, Industrial, Chemicals, Fertilizers, Coal Mining and various safety products that is
offered by company (Annual Report, 2019).
Discussion
Ownership Structure of Company
The ownership structure of the company can be well distributed in the form of public and
private limited ownership whereby the general public holds around 75.90% stake in the company
and the others are held by the private owners of the company. The size of retail investors has
been particularly very high in the company and the same can play a collective role in influencing
the policies and actions taken by the company (Alcamo J. H., 2017). The company operates in
the form of a Public Limited Company whereby the company is primarily handled with the help
of the CEO of the company who takes important managerial decision about the company.
Wesfarmers Chairman is Michael Chaney and on the other hand, the Managing Director is Rob
Scott. The management roles and positions held by each of the senior management employee in
the organization is well defined and organized whereby each of the task performed by the
financial operation is handled by the Chief Financial Officer, Operations by the CEO and the

ACCOUNTING FINANCIAL ANALYSIS REPORT3
Managing Director of the company. The major shareholders of the company is the HSBC
Custody Nominees (Australia) Limited that is holding about 23% of the issued share capital. On
the other companies that have significant stake in the organization are as follows:
 Blackrock Group (Blackrock Incorporation) having around 5%;
 The Vanguard Group Incorporation having around 5%.
Based on the above data it can be well seen that the company shareholding pattern is not a
single family based company rather that it can be classified as a non-family company
(Clarkson-Ledward, 2018). However, it is crucial to note that other key shareholders of the
company having significant shareholding position in the company are as follows:
 J P Morgan Nominees Australia Limited holding around 15%
 Citicorp Nominees Pty Limited holding around 5.31%
While doing the financial analysis of the company it was also found that any of the
following company does not have significant position or stake in the company and neither in the
form of corporate firm’s governance. The key board of directors, Managing Director and
Chairman that the company has are as follows:
 Michael Chaney AO: Chairman
 Jennifer Westacott AO: Director
 Rob Scott: Managing Director
 The Right Honorable Bill English Knzm: Director
 Wayne Osborn Director
 Paul Bassat Director
 Tony Howarth