The services in Australia and New Zealand

Financial Analysis

FINANCE 1
Contents
Resource A.................................................................................................................... 2
Executive Summary...................................................................................................... 2
Analysis..................................................................................................................... 2
Interpretation............................................................................................................... 4
Non-financial analysis.................................................................................................... 4
Conclusion.................................................................................................................. 5
Resources B................................................................................................................... 6
Bibliography............................................................................................................... 9

FINANCE 2
Resource A
Executive Summary
The main aim of this paper is to discuss the financial performance of the company. Apart from it,
the non-financial position of the company will be done. Wesfarmers has been taken into
consideration to determine the market position by evaluating its financial and non-financial
position. Wesfarmers is an Australian supermarket chain that offers the wide range of products to
consumers such as household goods, beauty product and many others.
Analysis
Ratio's Analysis of
Wesfarmers
AUD in Million 2018 2019
Profitability Ratio
(Net) Profit margin (a/b) Net Profit 1197 5510
Net Sales 66594 27818
2% 20%
Gross Profit Margin Gross Profit 20876.00 10578.00
Net Sales 66594.00 27818.00
31% 38%
Return on Equity
Net income after preference
dividends 1197 5510
Average common stock holder's
equity 22238 18981
5% 29%
Solvency Ratio

FINANCE 3
Debt (to assets) ratio (a/b) Total Liabilities (a) 14179 8362
Total Assets (b) 36,933 18333
38% 46%
Debt to Equity Total Debt 4154 3146
Total equity 22754 9971
18% 32%
Interest Coverage Ratio EBIT 3813 2404
Finance costs 211 175
18.07 13.74
Efficiency Ratio
Days Debtors (a/b) Receivables (a) 1657 948
sales *365 (b) 66594 27818
9.08 12.44
Days Creditors (a/b) Payables (a) 6541 3620
Sales*365 (b) 66594 27818
35.85 47.50
Liquidity Ratio
Current ratio (a/b) Current assets (a) 8706 6350
Current liabilities (b) 10025 5216
0.87 1.22
Quick ratio (a/b) Quick assets (a) 2340 5989
Current liabilities (b) 10025 5216
0.23 1.15
Solvency Ratio
Debt to Equity Total Debt 4154 3146
Total equity 22754 9971
18% 32%
Interest Coverage Ratio EBIT 3813 2404
Finance costs 211 175
18.07 13.74
Cash Flow Ratio