Analysis of Metcash Limited

Running head: METCASH LIMITED ANALYSIS
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Analysis of Metcash Limited

METCASH LIMITED ANALYSIS 1
Table of Contents
Part I...........................................................................................................................................2
Answer 1....................................................................................................................................2
Answer 2....................................................................................................................................2
Answer 3....................................................................................................................................2
Answer 4....................................................................................................................................2
Answer 5....................................................................................................................................3
Part II..........................................................................................................................................4
Efficiency ratios......................................................................................................................4
Profitability Position...............................................................................................................4
Debt Position..........................................................................................................................5
References..................................................................................................................................6

METCASH LIMITED ANALYSIS 2
Part I
Answer 1
Metcash Company is the company that is involved in the businesses of distribution as well as
the marketing of groceries, fresh produce, alcoholic beverages and the hardware as well as
the consumer goods (Metcash Limited, 2018).
Answer 2
There are different ways to recognise the revenue recognition and one such way is to record
the revenue only to the extent to which the benefits can be derived out of those received. As
observed form the annual report of the Metcash limited the revenue recognition is associated
with the AASB 15 from the financial year 2019. Further it was also found that this method is
going to supersede all the existing measurements or the methods prevailing under the
Australian Accounting Standards (Metcash Limited, 2018).
This policy can be clearly identified on the page number 45 and 48 of the annual report
(Metcash Limited, 2018)
Answer 3
The valuation method used by the Metcash Limited to value the plant property and equipment
is at the cost less the accumulated depreciation. In the annual report this information can be
extracted from the page number 47 (Metcash Limited, 2018).
Answer 4
Ernst and Young is the reputed audit firm that is performing the duties of audit. The core and
the critical reason for why the auditing is necessary is because it gives the management the