Wealth Report for Woolworths Limited

WEALTH REPORT
Student Name:
Student ID:
6/3/2018

EXECUTIVE SUMMARY
The company that has been chosen for the furtherance of the report is the Woolworths Limited.
The company is based from Australia and has been operating for the last more than hundred
years. The company has been into the retail sector and has supermarket chains which provide the
fresh foods, fruits, liquor and other household products. The report has been formed with major
two objectives. The first objective is to analyze the annual report of the company with the
financial measures and the second objective has been to provide recommendation to the potential
investors for making investment in the company.
Contents
EXECUTIVE SUMMARY.................................................................................................................................2
ANALYSIS.....................................................................................................................................................2
INTERPRETATION.........................................................................................................................................5
CONCLUSION...............................................................................................................................................7
REFERENCES................................................................................................................................................7
ANALYSIS
The annual report of the company for the year ending 2017 and 2016 has been considered. The
ratio analysis has been considered as the important factor which will help in making the analysis
of the financial performance and the financial position of the company. (Horngren, 2012).
Following table contains the analyses:
S. NO. Particulars 2017 2016
a) Profitability Ratio:

(i) Return on Assets
(Net Income / Total Assets)
Net Income 1482 763
Total Assets 22915 23502
Return on Asset 6.47 3.25
(ii) Net Profit Margin
(Net Profit / Revenue)
Net Profit 1482 763
Revenue 55669 53664
Net Profit Margin 2.66 1.42
b) Short Term Solvency Ratio
(i) Current Ratio
(Current Assets / Current Liabilities)
Current Assets 6994 7427
Current Liabilities 8824 8993
Current Ratio 0.79 0.83
(ii) Quick Ratio
(Quick Assets / Current Liabilities)
Quick Assets (Current Assets - Inventories)
Current Assets 6994 7427
Less Inventories 4080 4559
Quick Assets 2914 2868
Current Liabilities 8824 8993
Quick Ratio 0.33 0.32