Financial Analysis of Wesfarmers

Running head: FINANCIAL ANALYSIS OF WESFARMERS
Financial Analysis of Wesfarmers
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Author’s Note

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FINANCIAL ANALYSIS OF WESFARMERS
Executive summary
The report shed light on the financial analysis of the Westfarmers. For the purpose the report
has undertaken an analysis of the Westfarmers annual report. The report has identified the
content that are mentioned into the annual report. The report identified the requirement of
analysing the financial statement for the shareholders and the investors. The report identifies
the evidences of the benefit and allowances. The report also identifies the income and
expenditures mentioned into the income statement. The report explains the financial
statement analysis and understanding the decline the report provides recommendation over
their performance. The report also identifies that there is no material statement and lastly the
report draws attention towards the foot note that are given into the annual report.

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FINANCIAL ANALYSIS OF WESFARMERS
Table of Contents
Introduction................................................................................................................................3
Part A.........................................................................................................................................3
Dissemination of Annual Report............................................................................................3
Importance of Annual Report.................................................................................................3
Annual Report........................................................................................................................4
Consolidation and Conversion...............................................................................................5
Asset and Liability Valuations...............................................................................................5
Financial Discrepancies.........................................................................................................6
Available Benefits and Allowances.......................................................................................6
Income and Expenditure........................................................................................................6
Financial Summary................................................................................................................6
Business Activities.................................................................................................................7
Comparison of Report............................................................................................................7
Part B..........................................................................................................................................8
Financial Statement Analysis.................................................................................................8
Accounting Terms..................................................................................................................9
Conclusion................................................................................................................................10
Reference..................................................................................................................................11
Appendices...............................................................................................................................13

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FINANCIAL ANALYSIS OF WESFARMERS
Introduction
An annual report is a comprehensive report that are intended to give information to
the company shareholders and the investors about the company’s activities and financial
performance throughout the preceding year. Therefore, the report focuses on analysis of the
annual report where the financial data presented by the company is analysed.
Part A
Dissemination of Annual Report
The Annual report has been disseminated to the shareholders and the investors of the
Wesfarmers
Importance of Annual Report
The annual report presented by the Wesfarmers Company is needed for analysing and
identifying the growth and the performance of the company. This gives an impression of the
company’s corporate strategy where the shareholders and investors get knowledge over their
investment return. The annual report contains the financial statement such as income
statement which gives idea on the company net profit after incurring all expenses. The
company’s profitability position, cash flow statements provides an idea about the company’s
financial performance. It also reflects the efficiency of the management in utilizing the assets
of the company and the earning capability from company’s different activities undertaken.
Finally, the balance sheet which gives idea on the company’s financial position reflecting the
assets & liabilities and the net worth of the company. The financial data and information
presented by the company is further taken into consideration for the purpose of investment
evaluation by the shareholders of the company. These information helps the recipients to
understand the return on investment and the company’s ability in paying dividends (Kirklin et
al., 2013).