Ratio Analysis of Wesfarmers Limited: Liquidity and Profitability Ratios

Principles of
Accounting
Assignment

Table of Contents
Background of the report............................................................................................................................3
Introduction.................................................................................................................................................3
Ratio Analysis..............................................................................................................................................4
Liquidity Ratios........................................................................................................................................4
Profitability Ratios...................................................................................................................................5
Conclusion...................................................................................................................................................6
References...................................................................................................................................................6

Background of the report
The report has been prepared has been prepared on the company Wesfarmers Limited and the
analysis has been done using the ratios. Out of the given 5 types of ratios, few of them has been
selected to analyze the performance of the company over the year and where it stands in
comparison with the industry. During the ratio analysis, the balance sheet, profit and loss
account, statement of changes in equity and the cash flow statement of the company for the
year 2017 was analyzed and results are shown based on the same. For the convenience of the
readers, the page of the annual report from where the data has been extracted has also been
given (Choy, 2018).
Introduction
The company which has been chosen for analysis here is Wesfarmers Limited and the annual
report pertains to the year 2017. The company is the largest in Australia in terms of revenue or
sales as well as giving employment to the people. It has a history of over 100 years and is listed
on Australian Stock Exchange. It operates in the countries of Australia, New Zealand,
Bangladesh, Ireland and United Kingdom majorly but has a presence all over the world. It is a
major retail conglomerate which also deals in chemicals, fertilizers, mining and production and
sale of other industrial and safety products as well. The company has a number of subsidiaries
and has been growing off late (Mun, 2018).