FINANCIAL & ECONOMIC INTERPRETATION AND COMMUNICATION 10 Running Head: FINANCIAL & ECONOMIC INTERPRETATION AND COMMUNICATION

Running Head: FINANCIAL & ECONOMIC INTERPRETATION AND
COMMUNICATION
FINANCIAL & ECONOMIC INTERPRETATION AND COMMUNICATION
Name of the Student
Name of the University
Author Note

1FINANCIAL & ECONOMIC INTERPRETATION AND COMMUNICATION
Table of Contents
Executive Summary...................................................................................................................2
Analysis......................................................................................................................................3
Interpretation..............................................................................................................................3
Financial Performance Indicators..........................................................................................3
Non-Financial Performance Indicators..................................................................................7
Conclusion & Recommendations...............................................................................................8
Reference..................................................................................................................................10

2FINANCIAL & ECONOMIC INTERPRETATION AND COMMUNICATION
Executive Summary
Financial analysis is referred to analysis of entity’s financial statements that includes
income statement, balance-sheet and notes to accounts or the financial ratios for evaluating
trends, performance and results of company that will be beneficial for taking important
decisions such as financing activities and planning and investment projects. Hence, this
assignment includes the discussion of analysis of the financial and non-financial performance
indicators of Woolworths Group. Further, based on the analysis conclusion and
recommendations will be given for addressing stakeholder’s decision-making needs.

3FINANCIAL & ECONOMIC INTERPRETATION AND COMMUNICATION
Analysis
Gross Profit Margin Ratio 2019 2018
Gross Profit 17,442.00 16,709.00
Net sales 59,984.00 56,944.00
Result 29% 29%
Return on Equity 2019 2018
Net Profit 2,759.00 1,795.00
Shareholder's Equity 10,669.00 10,849.00
Result 26% 17%
Current Ratio 2019 2018
Current Assets 6,298.00 7,014.00
Current Liabilities 8,620.00 9,029.00
Results 0.73 0.78
Debt to Equity Ratio 2019 2018
Total Debt 12,822.00 12,542.00
Shareholders' Equity 10,669.00 10,849.00
Result 1.20 1.16
Dividend Yield Ratio 2019 2018
Total dividend 1267 724
Market Share Price 33.02 25.54
Result 38.37 28.35
Woolworths Group Limited
Liquidity Ratio
Profitability Ratio
Solvency Ratio
Market Performance Ratio
Table 1: Financial Analysis of Woolworths Group (Rensburg and Botha 2014)
Interpretation
Financial Performance Indicators
In order to analyze the financial performance indicators of Woolworths, financial ratio
have been calculated and analyzed. The calculation of profitability ratio is done to measure
overall entity’s performance in the terms of total income generated from its business