Financial Statistics for Woolworths Group and Goodman Group

Running head: FINANCIAL STATISTICS
Financial Statistics
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1FINANCIAL STATISTICS
Table of Contents
Scenario 1: Woolworths Group..................................................................................................2
Question 2: Goodman Group.....................................................................................................3
Question 3:.................................................................................................................................5
References:.................................................................................................................................7
Appendices:................................................................................................................................8

2FINANCIAL STATISTICS
Scenario 1: Woolworths Group
The following ratios are computed in order to evaluate the financial condition of
Woolworths Group for the past five accounting years:
Years 2013 2014 2015 2016 2017
Acid-test (quick) ratio
0.29 0.33
0.
30 0.32 0.33
Return on assets 16.54% 16.33% 14.33% 6.57% 10.02%
Times-interest earned ratio
8.84 13.65
14.
01 6.54 12.01
Return on net sales 3.86% 4.03% 3.62% -4.38% 2.86%
In accordance with the above table, it could be stated that the quick ratio of
Woolworths Group has increased from 0.29 in 2013 to 0.33 in 2014 followed by a decline to
0.30 in 2015 and after 2015; the ratio has increased to 0.32 in 2016 and 0.33 in 2017
(Woolworthsgroup.com.au 2018). With the help of quick ratio, it is possible to assess the
ability of an organisation to discharge its short-term dues, as they become due. The general
benchmark of this ratio is 1. In case of Woolworths, even though increase could be observed
in this ratio in 2016 and 2017, however, it is nowhere near to the stated benchmark. The
primary reason behind such lower ratio is that it has kept adequate amount of inventory,
which is more compared to the market demand. Hence, the organisation is not able to
discharge its short-term dues with its available current assets.