Woolworths Financial Performance Analysis

This assignment delves into a comprehensive analysis of Woolworths' financial performance. It examines the company's revenue, profitability trends, and key financial ratios to assess its overall health and growth potential. The analysis also includes a SWOT (Strengths, Weaknesses, Opportunities, Threats) evaluation to identify internal and external factors influencing Woolworths' success in the competitive Australian retail landscape. Finally, the assignment discusses the challenges and opportunities facing Woolworths in the future.

Running head: FINANCE
Finance
Name of the Student:
Name of the University:
Authors Note:

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Table of Contents
1. Company overview:...............................................................................................................2
2. Growth prospects of the company:........................................................................................2
Reference and Bibliography:......................................................................................................6

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1. Company overview:
Woolworths is mainly identified as one of the largest and biggest company Australia,
which directly revolve in retailing industry. Furthermore, the company was established in
1924, where the company started with stores all around Melbourne, Sydney, Perth, and
Brisbane. The company's operations for the period mainly resulted in accumulation of more
and more stores and multiplex, which led to higher income. The company from 1970 have
been provide adequate discount department stores, which helped in attracting more and more
customers into their vicinity. The company in the current scenario is facing irrelevant
launched in 2016 of 1.2 million dollars. Nevertheless, in 2017 the overall financial statement
indicated a profit of 1.5 million dollars. This relevant decline in profit was mainly due to the
reduction in revenue generation capacity and operating income of the organisation
Furthermore, in Australia Woolworths is mainly identified as one of the biggest retailers with
an overall employee strength of 202,000. Different types of wishing that is currently being
rude Bible words under the supermarket, which is used in increasing revenue how are you
feel it. However, in 2017 the overall revenue directly increased, which indicates in
improvement in operational feasibility of the company (Woolworthsgroup.com.au, 2017).
Woolworths CEO is Brad Banducci and Chairman Gordon Cairns, which helped in
improving operational capability of the organisation. Woolworths under the leadership was
able to withstand loss of 1.2 billion and generate a 1.5 million in revenues the next fiscal
year.
2. Growth prospects of the company:
WOOLWORTHS LTD Growth rate
Fiscal year ends in June. 2016-06 2017-06

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Revenue -4.26% -4.47%
Cost of revenue -3.76% -6.88%
Gross profit -5.60% 2.12%
Operating expenses
Sales, General and administrative 212.40% 1.55%
Other operating expenses -66.53% -17.77%
Total operating expenses 5.85% -2.97%
Operating income -56.35% 56.80%
Interest Expense -3.61% -21.17%
Other income (expense) -1.25% -12.00%
Income before income taxes -55.68% 56.84%
Provision for income taxes -44.16% 25.20%
Minority interest -12843.02% 105.38%
Other income -12843.02% 105.38%
Net income from continuing operations -60.70% 76.41%
Net income from discontinuing ops 103.49%
Other 12843.02% -105.38%
Net income -157.54% 224.19%
Net income available to common shareholders -157.54% 224.19%
From the evaluation of the above table the growth rate of Woolworths could be
identified, which represents the profits that was made by the organisation in 2017 in
comparison to 2016. There is a relevant shift ok 224.19% in net income of Woolworths,
which indicates the overall control of financial damage conducted by the organisation.
However, a relevant decline in revenue half moon words could be identified from the above

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table, which directly indicates that company's overall sales value declined in 2017. The gross
profit rules by 2.12% indicating the profitability, which might increase returns from
operation. Previously in 2016 the gross profit was negative 5.6%, while in 2017 it rules to
positive 2.12%, which directly indicates the relevant measures taken by the organisation to
control marriage. There is different SWOT of Woolworth, which could be identified for
detecting viability of the project.
Strength
 Being the market leader in Australia
 Reducing the expense on packaging
 Being a well known investor
Woolworths is mainly identified that
Well now re1tail wet 800 stores and
202,000 employees.
 Strong brand name and high
valuations.
Opportunity
 Using adequate promotion such as
advertisements, sponsorship to
increase the overall retune from
investment.
 In addition, the company could
directly use the franchising models
and strategic acquisitions method to
improve its assets calculation and
generate higher return from
investment.
Weakness
 Operations of the competitors are
relatively high, which is constantly
threading the expenses of
Woolworths
 The company has established its
online activities, which led to the
presence in the online market at very
Threats
 Rising cost in materials and other
products that are demanded by the
consumer.
 Increment in internal competition,
which could hamper growth of
Woolworths

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slow pace
The evaluation of the above SWOT analysis table mainly represents the current the
company operation is adequate but is not able to compete with internal companies. Hence, the
other measures need to be conducted, which might help in generating higher returns. The
overall SWOT analysis could mainly help in identifying the overall future prospects the
company. However, in future the company is mainly goofing to face competition due to the
involvement of international players in Australia. This could directly increase threat
opportunity of the company and generate higher return from investment. Therefore, in the
current circumstance the company is not facing any dire consequences. Nevertheless, the
future growth of the company overall growth prospect in very low due to the competition
imposed by international retailers (Bloomberg.com, 2017).