Financial Analysis of Wesfarmers and Woolworths Ltd

Accounting for
Management
Decisions

1
By student name
Professor
University
Date: 25 April 2018.
1 | P a g e

2
Executive Summary
In the given assignment, a report has been prepared on the 2 companies namely Wesfarmers
Limited and Woolworths Ltd, both of which are listed on Australian Stock Exchange. The annual
report of both the companies have been analysed for two years, 2016 and 2017. The report gives
the brief introduction of the two companies, how they are positioned in the industry and how the
financial information in profit and loss account, balance sheet and the cash flow statement looks
like. The report also highlights the progress and performance of the company over the two years
based on various ratio analysis including profitability, efficiency, liquidity, gearing and
investment ratios. A brief discussion has been done on each of the ratios for the 2 companies as
to how they have performed over the years.
2 | P a g e

3
Contents
Introduction.................................................................................................................................................4
Financial Analysis using financial statements..............................................................................................5
Analysis of Wesfarmers Ltd.....................................................................................................................5
Analysis of Woolworths Ltd.....................................................................................................................8
Ratio computation.....................................................................................................................................13
Ratio Analysis............................................................................................................................................14
References.................................................................................................................................................16
3 | P a g e