Investment Position of Woolworths Limited: A Ratio Analysis Study

Running Head: Accounting for managers
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Project Report: Accounting for managers

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Executive summary:
The study on the final financial statement of the business is one of the easiest methods
to evaluate the overall performance of a business. The report focuses on the case study of
Woolworths limited. The report has been conducted to identify the investment position of the
company. In order to evaluate the investment position of the company, the ratio analysis
study has been done and it has been measured that the performance of the company is quite
impressive. The investment into the company is better option for the investors to get higher
return.

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Contents
Introduction.......................................................................................................................4
Company background.......................................................................................................4
Analysis and discussion....................................................................................................4
Trend analysis...............................................................................................................8
Conclusion......................................................................................................................10
Recommendation............................................................................................................10
References.......................................................................................................................12
Appendix.........................................................................................................................13

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Introduction:
Evaluation on the final financial statement and the annual report of an organization is
one of the major parts while making the decision about the investment in that particular
company. The final statement and other relevant information in the annual report of the
company makes it easier for the investors and the analyst to collect the information for the
purpose of making the decision about the investment in that company. The strategic direction,
director’s report, operating environment, financial items, stock price, strategically changes etc
are the few figures and information which makes a base for the investors and the analyst.
This information leads to the analyst and the potential investors of the business to reach over
the conclusion (Moyer, McGuigan, Rao and Kretlow, 2011).
In the report, the case study of Woolworths limited has been studied in order to
identify the investment position of the company and identify that whether the investment into
the company would be enough profitable for the investors or not. Various tools and
techniques of analysis have been applied on the annual report and financial statement of the
company to reach over the conclusion.
Company background:
Woolworths group limited is a retailing company which is based in the Australian
market mainly. The company offers various segment to its customers such as Australian food,
liquor, petrol, hotels services, supermarket services etc. the different segment of the company
is operated by the different subsidiaries of the company in order to meet the financial and non
financial objectives of the business such as to improve the turnover, profitability position and
the market base of the company (Reuters, 2018). The total market capital of the business is
36,116 million on the basis of the annual report (2017) of the company. Company has
diversified its market in the New Zealand and Indian market recently.
Analysis and discussion:
The analysis has been done on the annual report and the financial statement of
Woolworths limited to measure the investment position of the company in the market. Firstly,
the study of ratio analysis has been done on the company to identify the various financial
level of the business such as liquidity financial level, profitability financial level, solvency