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BFA526 Financial Reporting and Analysis

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Financial Reporting and Analysis (BFA526)

   

Added on  2020-05-08

BFA526 Financial Reporting and Analysis

   

Financial Reporting and Analysis (BFA526)

   Added on 2020-05-08

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Running head: FINANCIAL REPORTING AND ANALYSIS ASSIGNMENTFinancial Reporting and Analysis Assignment Name of Student:Name of University:Author’s Note:
BFA526 Financial Reporting and Analysis_1
1FINANCIAL REPORTING AND ANALYSIS ASSIGNMENTExecutive Summary The study has aimed to provide the evaluation of ratio analysis of Wesfarmers Limited. Some ofthe main aspects of the report have considered overview of the company and its operations. Thishas been further seen with corporate social and environmental reporting analysis and varioustypes of the financial ratios such as Efficiency, Short-term solvency, Long-term solvency andMarket-based ratios. The various depictions has shown with a decreasing trend of 4.47% in 2014to 3.91% 2015 and 0.62% in 2016 in Net Profit. The main overview of the solvency aspect hasbeen further discerned with Debt to Equity Ratio. This has been seen with degrading condition of0.53 in 2014 to 0.63 in 2015 to 0.78 in 2016. The profitability aspect of the study has beenconsidered with the calculated with Net Profit margin, Return on Assets, Return on Equity andAsset Turnover. The significant decrease in the net profit margin has been evident with 4.47% in2014 to 3.91% 2015 and 0.62% in 2016. Despite of increasing revenue the decreasingprofitability has been mainly due to the various types of the facts which have seen to be based onthe decreasing profit over the years.
BFA526 Financial Reporting and Analysis_2
2FINANCIAL REPORTING AND ANALYSIS ASSIGNMENTTable of ContentsIntroduction......................................................................................................................................3i.Overview of the company and its operations.......................................................................3ii.Corporate social and environmental reporting analysis........................................................3Analysis of the company over three years.......................................................................................3i.Overall results.......................................................................................................................3ii.Profitability...........................................................................................................................4iii.Efficiency..........................................................................................................................4iv.Short-term solvency..........................................................................................................5v.Long-term solvency..............................................................................................................6vi.Market-based ratios...........................................................................................................6vii.Other analyses...................................................................................................................7Conclusion.......................................................................................................................................7Recommendations and limitations...................................................................................................8List of References............................................................................................................................9Appendix........................................................................................................................................10
BFA526 Financial Reporting and Analysis_3
3FINANCIAL REPORTING AND ANALYSIS ASSIGNMENTIntroductioni.Overview of the company and its operationsWesfarmers Limited headquartered in Perth, Western Australia has beenidentified as the leader in terms of producing chemicals, fertilisers and safety products.The company has been further seen to the private employer and constituting of 205000employees. ii.Corporate social and environmental reporting analysisThe social and the environmental measures have been seen with climate changeresilience. Some of this has been further seen to be based in reducing waste to landfilland using water wherever possible. Analysis of the company over three yearsi.Overall results The overall result of the analysis of the results has been considered withprofitability ratio, solvency ratio and market based ratio. Some of the various types of thesolvency aspect of the overall result have been discerned in from of the liquidity andefficiency. Based on the overview of the net profit margin has been seen with adecreasing trend of 4.47% in 2014 to 3.91% 2015 and 0.62% in 2016. The main overviewof the solvency aspect has been further discerned with Debt to Equity Ratio (Schmidgalland DeFranco 2004). This has been seen with degrading condition of 0.53 in 2014 to 0.63in 2015 to 0.78 in 2016. The market based ratio has been seen with price earning rationand the overall price earnings ratio has been seen with 0.148 in 2014 which has further
BFA526 Financial Reporting and Analysis_4

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