Financial Analysis of Wesfarmers: An Introductory Accounting Report

This report provides a comprehensive analysis of Wesfarmers' financial performance, drawing on its 2018 annual report. The analysis covers the company's operating, financing, and investing activities, utilizing various financial ratios such as liquidity, profitability, and gearing ratios to assess its performance compared to previous years. The report examines the company's core business, including its diverse operations in chemicals, energy, fertilizers, and merchandise, and discusses its operating performance, highlighting revenue, expenses, and liquidity. Furthermore, it delves into Wesfarmers' financing performance, evaluating return on equity (ROE) and return on assets (ROA), alongside gearing ratios to gauge its financial leverage. The investing performance is also assessed, including price-earnings ratio and earnings per share, with an emphasis on how the company's investments contribute to its overall financial health. The importance of non-financial information, such as corporate governance practices and ethical considerations, in making investment decisions is also discussed. The report concludes by summarizing the key findings and offering insights into Wesfarmers' financial position and investment potential, emphasizing the significance of both financial and non-financial factors in evaluating the company.