This project provides a comprehensive financial analysis of Wesfarmers Limited, evaluating its performance from 2016 to 2018. The analysis begins with an overview of Wesfarmers' business operations, followed by an in-depth examination of its profitability and operating efficiency using relevant financial ratios such as gross margin, net margin, return on capital employed, days inventory turnover, and cash conversion cycle. The report further explores cash management strategies, including the use of marketable securities. A sensitivity analysis is included to assess potential project impacts, along with a discussion of systemic and unsystemic risks and Wesfarmers' dividend policy. The findings culminate in an investment recommendation for potential investors, based on the financial performance and future outlook of the company. The report concludes that while Wesfarmers maintains a stable position in the Australian retail industry, focus should be kept on improving net income to enhance future investments and shareholder returns.
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