Investor Report

Running Head: INVESTOR REPORT
Executive Summary
The aim of this assignment is do the analysis for providing the investor report. For
this analysis the company that will be considered will be Wesfarmers Limited. It is the
Australian conglomerate company that is headquartered in Perth Western Australia. This
company is engaged in the various operations of the business such as convenience stores,
supermarkets, home improvements, liquor and hotels. This company has the interest
predominantly in the New Zealand and Australian chemical, retails, fertilizers, coal mining as
well as safety and industrial products. Hence, under this report, discussion will be based on
the changes in the financial information and the non-financial information. Lastly, overall
picture will be provided for the situations of the company and subsequently review will be
provided to the stakeholders regarding the market analysis. Therefore, analysis of financial
and non-financial information are very important aspects that can be useful for the investors
for taking important decisions regarding making the investment (Group 2019).
Analysis
Operating Profit Margin 2017 2018
Operating Profit 4,177.00$ 4,061.00$
Revenue 66,883.00$ 64,913.00$
Formula 6% 6%
Assets Turnover 2017 2018
Revenue 66,883.00$ 64,913.00$
Total Assets 40,115.00$ 36,933.00$
Formula 1.67 1.76
Current Ratio 2017 2018
Current Assets 9,667.00$ 8,706.00$
Current Liabilities 10,417.00$ 10,025.00$
Formula 0.93 0.87
Debt Equity Ratio 2017 2018
Long Term Debt 5,757.00$ 4,154.00$
Shareholders' Funds 23,941.00$ 22,754.00$
Formula 24% 18%
Dividend Yield Ratio 2017 2018
Dividend Paid 46.00$ 50.00$
M arket Price of Share 32.20$ 29.99$
Formula 1.43$ 1.67$
Financial Leverage Ratio
Market Value Ratio
Profitability Ratio
Efficiency Ratio
Liquidity Ratio
Interpretation
Significant Changes in Financial Results
The financial results of the company shows that the profitability ratio of the company
that is calculated by operating margin is same over the two years. In the year 2017, it was 6%
and in the year 2018, it was also 6%. This ratios indicates that the company is making profit
after paying their variable costs of the production such as raw material, wages and so on. It
shows that the company is having les financial risk and it is efficient enough for controlling
the costs as well as expenses that are associated with the business operations (Robinson et al.
2015). The efficiency ratio of the company that is calculated by assets turnover shows that in
the year 2017, it was 1.67 and during the year 2018, it was 1.76. The trend of two year shows
that as compare to the year 2017, the turnover of asset is higher in the year 2018. It means