logo

Financial Statement Analysis of Woolworths

   

Added on  2019-10-30

21 Pages3261 Words127 Views
Running head: FINANCIAL STATEMENT ANALYSIS Financial Statement Analysis of WoolworthsName of the University:Name of the Student:Authors Note:

1FINANCIAL STATEMENT ANALYSISExecutive SummaryThe objective of the paper was to conduct financial ratio analysis along with trend and horizontalanalysis of the company for evaluating the financial position of the organization. It was gatheredfrom the ratio analysis of Woolworths Limited that the organisation has experienced a significantdecrease in its overall revenue, which has resulted in decreasing gross income of the companyover the three-year period. Net margin of the company is deemed to decrease over past threeyears which signifies. ROE of the company is observed to diminish over past three years whichsignifies that the company is not able to gather enough profit each dollar of commonstockholders' equity generates. ROA of the company is observed to decrease over the past threeyears which signifies that the company employs its assets in gathering profits.

2FINANCIAL STATEMENT ANALYSISTable of Contents1. Introduction..................................................................................................................................32. Vertical/ Trend Analysis..............................................................................................................33. Horizontal analysis......................................................................................................................84. Ratio analysis.............................................................................................................................145. Conclusion.................................................................................................................................21References......................................................................................................................................22

3FINANCIAL STATEMENT ANALYSIS1. IntroductionWoolworths Group is among some renowned retail organisations in Australia along withNew Zealand. The company initiated its first retail shop on 22nd September 1924 having selectedcapital of £85,000 attaining 15,000 shares initial offering to people (Woolworthsgroup.com.au2017). The company offers distinct retail products types like groceries, liquor, magazines, DVDsalong with stationery items all through 980 stores within Australia. The objective of the paper isto conduct financial ratio analysis along with trend and horizontal analysis of the company forevaluating the financial position of the organization. 2. Vertical/ Trend AnalysisTrend analysis of income statement:Particulars2017 (in million $)2016 (in million $)2015 (in million $)2015-20162016-2017Continuing Operations:Revenue from goods andservices sales58,085 58,81259,812.00 -1.67%-1.25%Other operating revenue189.80 189.30 179.30 5.58%0.26%Total operating revenue58,275.50 59,001.30 59,991.30 -1.65%-1.25%Cost of sales42,676.70 42,950.90 42,851.90 0.23%-0.64%Gross profit15,598.80 16,050.40 17,139.40 -6.35%-2.90%Other revenue0.00%2.67%

4FINANCIAL STATEMENT ANALYSIS277.50 270.10 270.10 Branch expenses11,010.70 10,079.20 10,079.20 0.00%8.46%Administration expenses3,260.40 2,691.40 2,791.40 -3.58%17.45%Earnings before interest and tax1,605.20 3,549.90 4,538.90 -21.79%-121.15%Financing costs245.60 253.30 254.30 -0.39%-3.14%Profit before income tax1,359.60 3,296.60 4,284.60 -23.06%-142.47%Income tax expense519.50 995.80 996.80 -0.10%-91.68%Profit from continuing operations for the period 840 2,300 3,287.80 -30.02%-173.87%Loss from discontinued operations after tax 3,188 163164.40 -0.61%94.87%Profit/loss over the period (2,347) 2,1373,123.40 -31.57%191.03%Earnings per share(97.70)170.80 171.80 -0.58%274.82%From the above table, it could be stated that the organisation has experienced asignificant decline in its overall revenue, which has resulted in fall in its gross income over thethree-year period (Ball 2013). However, there is an increase in overall operating expenses, whichhas lead to the fall in gross income and this, in turn, has resulted in negative net income in 2017.Trend analysis of balance sheet statement:

5FINANCIAL STATEMENT ANALYSISParticulars2017 (in million $)2016 (in million $)2015 (in million $)2015-20162016-2017Current Assets:Cash and cash equivalents948.10 1,333.40 1,233.40 7.50%-40.64%Trade and other receivables763.90 885.20 875.20 1.13%-15.88%Inventories4,558.50 4,872.20 4,772.20 2.05%-6.88%Other financial assets56.00 188.50 178.50 5.31%-236.61%Assets held for sale1,100.50 381.60 471.60 -23.58%65.32%Total current assets7,427.00 7,660.90 7,530.90 1.70%-3.15%Non-Current Assets:Trade and other receivables85.90 116.70 126.70 -8.57%-35.86%Other financial assets638.20 497.60 487.60 2.01%22.03%Property, plant and equipment8,262.80 10,062.10 11,062.10 -9.94%-21.78%Intangible assets5,978.30 6,244.50 6,344.50 -1.60%-4.45%Deferred tax assets1,110.00 755.00 745.00 1.32%31.98%Total non-current assets16,075.20 17,675.90 18,765.90 -6.17%-9.96%Total assets23,502.20 25,336.80 26,296.80 -3.79%-7.81%Current Liabilities:

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Financial Analysis of Tesco Plc.
|19
|3755
|456

Vertical Analysis of Financial Statements MANAGEMENT AND ENTREPRENEURSHIP TABLE OF CONTENTS
|24
|7209
|325

Financial Analysis of Accent Group: Horizontal, Vertical and Ratio Analysis
|20
|4119
|302

Financial Assessment of Mediclinic International and NMC Health
|21
|4881
|443

Accounting for Managers: Analysis of Income Statement and Financial Ratios
|8
|1565
|231

Accounting for Managers: Analysis of Financial Performance and Ratios
|9
|1877
|227