Finance Assignment Solved - Doc

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Added on 2021-05-31

Finance Assignment Solved - Doc

Added on 2021-05-31

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RUNNING HEAD: FINANCEFinancial analysis

Finance 1ContentsIntroduction...........................................................................................................................................2Description of Woolworths Group Limited...........................................................................................2Ownership-governance structure...........................................................................................................3Key Fundamental Ratios.......................................................................................................................3Short-term solvency ratios.................................................................................................................3Long term solvency ratio...................................................................................................................5Asset utilization ratios.......................................................................................................................6Profitability ratios..............................................................................................................................8Market value ratios............................................................................................................................9Share price analysis.............................................................................................................................10Announcements...................................................................................................................................12Analysis of stock.................................................................................................................................13Estimation of weighted average cost of capital....................................................................................14Analysis of Debt ratio..........................................................................................................................14Dividend policy...................................................................................................................................15Recommendations...............................................................................................................................16Conclusion...........................................................................................................................................16References...........................................................................................................................................17

Finance 2Introduction Financial performance analysis is very important for the company as well as for the investor. It helps the potential investors in taking important decisions regarding their investment in a particular company. The analysis include overall evaluation and measurement of company’s financial position. It includes all the financial and non-financial aspects that reflects the true performance of an organization.This report contains an overall financial analysis of an Australian company named as Woolworths Group Limited. It contains a brief introduction about the company and its substantial shareholders. Later the fundamental ratios are also calculated along with the measurement of company’s stock performance against ordinaries indices. The report also focuses on the WACC of the firm and its debt ratio analysis. In addition to this, the dividend policy followed by Woolworth is also discussed later in this report. The last part focuses on the recommendation and the conclusion which includes findings of the report. Description of Woolworths Group LimitedThe company is a major retailer operating in Australia. The company majorly operates through Australia and New Zealand. After Wesfarmers, it is the second largest retailer in terms of revenue and also known as the largest takeaway liquor retailer in Australia. Approximately 205,000 employees are working in Woolworths and the company serves over 29 million customers across the world. The mission of company is to deliver best and quality products to its customers along with the easy and amazing convenience facility. The main aim and focus of Woolworths is to be ranked first across all its brands by the customers. Being an Australian company, it is publicly listed on theASX and has ticker symbol WOW.AX.

Finance 3Ownership-governance structure Main substantial shareholdersThe company has no substantial shareholders which holds more than 5% and 20% share in the business. Firm GovernanceThe Chairman: Gordon Cairns Members of Board: Jillian Broadbent, Holly Kramer, Siobhan McKenna, Scott Perkins, Kathee Tesija and Michael Ullmer.The CEO: Brad Banducci (Woolworths Group. 2018).None of the firm governance member is involved in the list of substantial shareholders of the company. Key Fundamental Ratios These ratios are calculated to measure the financial performance of the company. They provides a snapshot of the company financial situation internally and externally. A-Cap Resource Limited’s performance is measure by the fundamental ratios which are as follows:Short-term solvency ratiosThese ratios are basically the liquidity ratios which attempts to measure Company’s ability to meet its short term obligations. In other words, they seek to determine the ability of the firm to avoid financial distress in short term period (Bragg, 2012).1.Current ratio: It is a liquidity ratio which tends to determine the capability of a company to pay its current liabilities with the use of its current assets. The ideal ratio is 2:1.

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Finance Assignment Solved - Doc