Investment Opportunities in Australian Retail Industry

Running Head: Principle of financial management
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Project Report: Principle of financial management

Principle of financial management 2
Executive summary:
In this report, Myer limited and Australian limited, two companies has been evaluated, the
report focuses on the two companies from the same industry to analyze and evaluate the
investment position in the Australian market, the report conducts the top down analysis and
bottom up analysis method in the report to measure the performance of the firms and the
Australian retail industry. On the basis of the study, it has been recognized that the
investment into the retail industry would offer great returns to the company.

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Contents
Introduction.......................................................................................................................4
Industry and company evaluation.....................................................................................4
Top down analysis............................................................................................................4
Gross domestic product................................................................................................5
Fiscal policies...............................................................................................................6
Future projection on Australian stock market..............................................................6
Industry Viewpoint.......................................................................................................7
Industry data.............................................................................................................7
Future Outlook..............................................................................................................8
Bottom up analysis...........................................................................................................8
Ratio analysis................................................................................................................9
Myer limited.............................................................................................................9
Woolworths limited................................................................................................11
Summary and recommendation......................................................................................13
References.......................................................................................................................15

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Introduction:
This report emphasizes upon the various opportunities of investment in the Australian
market. It focuses on the current market and economical condition of Australia and explains
that how would the investment be run in the market and how much returns could be expected
from the instatement in the Australian market. For identifying the investment opportunity in
the company, various methods and techniques have been used of fundamental analysis such
as bottom up analysis and top down analysis.
Fundamental analysis measures the worth of an organization and the market on the
basis of the ratio analysis, trend analysis, economical analysis etc. In this report the worth of
an organization and the instant into the Australian market has been measured on the basis of
the final statements, company situation, industry situation, economical factors etc. Further,
two methods of fundamental analysis has been studied in the report which are top down
analysis and bottom up analysis to measure the performance and the position of the
investment.
The report mainly focuses on two retailing company of Australia which are Myer
limited and the Woolworths limited for the purpose of the investment and the investment
position of the company.
Industry and company evaluation:
Australian retail industry and the market have been evaluated and on the basis of the
study, it has been recognized that the performance of the company has been better. The
current report about the Australian retail industry explains that the retail industry position of
Australia is among the top 20 largest industries at the international level. However, the top
down analysis study on the industry explains that few issues have been occurred into the
retail industry of Australia which has impacted on the overall market position and the
performance (Analysis, 2018). In addition, Myer limited and Woolworths limited are among
the arrest Australian retail companies and performing their business in Australian market as
well as international level. Myer limited and Woolworths limited have registered their stock
in the Australian stock exchange and performing better in the market.
Top down analysis: