Analysis and Review of Financial Statements

COMPANY ANALYSIS
REPORT

Table of Contents
INTRODUCTION...........................................................................................................................1
OBJECTIVES..................................................................................................................................1
OVERVIEW OF ORGANISATIONS.............................................................................................1
Wesfarmers.................................................................................................................................1
WOOLWORTHS GROUP.........................................................................................................2
ANALYSIS OF FINANCIAL STATEMENTS..............................................................................4
ANALYSIS OF BALANCE SHEET..............................................................................................6
ANALYSIS OF CASH FLOWS.....................................................................................................8
RATIO ANALYSIS ......................................................................................................................10
SWOT ANALYSIS ......................................................................................................................11
RECOMMENDATION.................................................................................................................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
This report is prepared to analysis annual reports in of two organisations in order to
determine financial performance. Analysis of financial statements are done subject to explain
key financial indicators and aspects which are helpful in maintaining healthy and optimum
financial health of organisation and reduce the risk factors. A structured format is followed to
elaborate the concept. A company analysis report contains the aspects and measures which assist
financial growth of organisation in systematic manner.
OBJECTIVES
Aim of this report is to analyse the annual report of two Australian Listed organisations.
Drives of performance, risk and values, an overall investment recommendation and companies
are defined in this context. Educational objectives of this project are to enhance knowledge and
skills in understanding financial statements and evaluating data in excel to determine what
informations and details are addressed subject to performance and risk and values of
organisations and firms.
OVERVIEW OF ORGANISATIONS
Wesfarmers
Core business
Wesfarmers deals in supermarkets, hotels, liquor and convince stores for office suppliers
departmental stores and an industrials division with business in chemicals, fertilisers and energy
and industrial and safety products and coal. Wesfarner is one of the Australia's largest private
sector shareholder and employee organisation which has employee strength of approx 550,000.
History
This is a diversified organisation which was established in 1914 as western 'Australian
farmers' cooperative. Deane Hammond was the first chairman of the organisation. It was
established due to demand of the rural workers union for finer pay and less hours. Basically
organisation was formed to enhance and develop living standards of rural workers and farmers.
Empowering rural farmers and workers for their rights were main objectives of this Wesfarmers.
In 27 June 1914 the organisation get registered and started working with farmers. Soon
association started working with various companies under the Western Australian Farmer Act
and began trading form two small rooms at 13 Howard Street, Perth. It moved its new head
office just after establishment of three years at 569 Wellington street, Central Perth.
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Journey
As per growth perspective organisation grown up tremendously. In 1924 it launched first
commercial radio station subject to improve lives and livelihood to western farmers. In 1927 it
expand organisation with super phosphate Cuming Smith and Mt Lyell Farmers Fertiliser. In
1950 it acquired GASCYNE trading which introduced air conditioned trailers for better
condition. It expansion in to collection of art collection in 1977 and launched a takeover bid for
CSBP. In 1984 Wesfarmer becomes a public listed company. It acquired 50% shares of Gresham
partners. It acquired 100% of CSBP in 1986. there are two major steps was taken by organisation
in terms of business expansion plans. It take over Western Colliers which was a mine industry
with a new commission and contract.
In 1993 it acquired Dalgety farmers which was 147 years old corporation with $78
million. The major work of Wasfarmers stared after this merger. It started in capital management
and securities from acquisition of Lumley insurance. Company expanded its insurance business
further in 2006, with the take over of New Zealand insurance broker Crombie Lockwood and
OAMPS LTD with the $700 million. OAMPS was the largest public listed insurance broker. It
acquired Cole group in 2007 investing $19.3 billion. This was the time of global financial crisis
and Cole's shareholders withdrawal investments from organisation.
It introduced first reconciliation action plan in 2009 and $4.6 billion equity. In 2013
capital return subject to improve insurance business. It sold insurance underwriter business in
Australia and New Zealand to insurance Australia group. Sale was completed in June 2014.
Performance of organisation
Operating performance organisation is also in adequate manner such as return on assets
for the year 2017 is 7.10%. return on equity is calculated as 12.25% and return on invested
capital as 8.48%. return on capital invested decreased from last year which was recorded as 9.25
% overall effect fall upon organisation as .77% change in equal growth.
WOOLWORTHS GROUP
Core business
this organisation is one of the largest online supermarket business chain. Which deals in
multiple customer products and segments. It mostly deals in vegetables, fruit, meat, packaged
foods etc. it sells magazines, household products, DVDs and healthy and beauty products. At
present organisation is dealing 1000 stores across Australia. It also supplies pet and baby and
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