Financial Analysis and Organisational Improvement at Woolworths

This report provides a comprehensive analysis of Woolworths' organisational improvement, focusing on its financial performance, liabilities, and strategic management. It reviews variations in projected organisational outcomes, including financial ratios, policy changes, and business objectives. The report examines Woolworths' financial outcomes over three years, analysing trends in current and quick ratios, asset turnover, and net income. It also reviews the organisation's non-current liabilities, detailing changes over time and suggesting alternative finance options for debt reduction. A SWOT analysis identifies Woolworths' strengths, weaknesses, opportunities, and threats, highlighting its risk-averse attitude, resource management strategies, and the impact of technological advancements and e-commerce. The report concludes with references to support the analysis.

Running head: Organisational Improvement
Organisational Improvement
Name of the Student
Name of the University
Authors Note
Course ID

1Organisational Improvement
Table of Contents
Review the variations in projected organisational outcomes..........................................................3
Financial......................................................................................................................................3
Budget..........................................................................................................................................3
Policy changes.............................................................................................................................3
Objectives of business.................................................................................................................3
The indicators of key indicators..................................................................................................3
The goals of the origination.........................................................................................................3
Review whether the goals are being met.........................................................................................3
Financial......................................................................................................................................3
Budget policy...............................................................................................................................3
The business objectives...............................................................................................................3
The performance indicators.........................................................................................................3
Review of the financial outcomes of the chosen company for three years.....................................3
Review of the organizations non-current liabilities.........................................................................4
The change in the non-current liabilities over time.....................................................................4
Alternative finance options that could be used to manage debt reduction..................................4
Swot analysis of the company.........................................................................................................4
References........................................................................................................................................5

2Organisational Improvement
Review of the variations in projected organizational outcomes
Financial
From the annual report of the chosen company of Woolworths the financial outcome of
current ratio of Woolworth declined from 0.83 in 2016 to 0.78 in 2017 indicating a decline
in the company’s ability to honour its short term debt (Beauchaine, Theodore P., Itzhak Ben-
David, and Aner Sela).
Policy changes
The company has a policy that is consistent; therefore no change in the company policy can be
identified.
Objectives of business
The objective if the company of Woolworths is profit maximization and ultimate consumer
satisfaction.
The goals of the origination
The goals of the organization are to maximization of the satisfaction of the consumers.
Review of the financial outcomes of the chosen company for three years
Financial ratios are financial measures that indicate financial performance of a
business. Through trend analysis, the company can trace its performance and compare it
with that of competitors and peers. Woolworth’s current ratio declined from 0.83 in 2016
to 0.78 in 2017 indicating a decline in the company’s ability to honour its short term debt

3Organisational Improvement
obligations (Wang, Zhenkun, and Yihan Wang). The quick ratio increased from 0.15 in 2016
to 0.18 in 2017 indicating an improvement in the company’s ability to owners its long term
obligations. The asset turnover of the company declined from 2.46 in 2015 to 2.40 in 2017.
Return on assets declined from 8.66 in 2015 to 6.61 in 2018.The net income increased from
a negative profit of 1,235 million AUD in 2015 to a positive profit of 1,534 M AUD in 2016
and 1,724 million AUD in 2017.
Review of the organizations non-current liabilities
The change in the non-current liabilities over time
Non-current liabilities are obligations of the company that are due in a period of
more than one year. Woolworths long-term debt was 3076M US dollars, $ US 3868 M, and
AUD 2,775 million in 2015, 2016, and 2017 respectively (Vogel, Harold L.). Added with
other non-current liabilities, the total liabilities were AUD 5,334 M, AUD 6,039, and AUD
4,566M in 2015, 2016, and 2017 respectively. The statistics indicate that there was a
decline in total non-current liabilities between 2016 and 2017.
Alternative finance options that could be used to manage debt reduction
Apart from debt financing, the company can finance its business through equity
financing and minimizing on debt (Tracy, John A., and Tage Tracy).
Swot analysis of the company
SWOT analysis is a strategic management technique that identifies strengths,
weaknesses, opportunities, and strengths of a company. Woolworths’ businesses are

4Organisational Improvement
exposed to strategic, operational, financial, and compliance risks that are exposed to retail
and online businesses. It’s has a risk averse attitude and hence given two investments with
similar returns and different risks, Woolworths would take an investment that has less risk
(Buehlmaier, Matthias MM, and Toni M. Whited). The company has risk management strong
risk management team that analyses possible investments before selecting one that suits
its risk tolerance. Its attitude is strength than enables it to avoid huge losses. Its decision
making authorities are a key resource that facilitate prudent decision making on
investments. The resource management strategies of the company are efficient and thus
are a strength that enables Woolworths to overcome competition.
Woolworths has the opportunity to exploit the advancement in technology by
selling and marketing its products on the internet. The internet presents an opportunity for
online marketing campaigns through social media platforms such as twitter (Muda,
Iskandar, et al). The budget creation process is still ineffective and thus is a weakness to the
company. The retail business market profile is a threat to the company since ecommerce is
taking over business from physical retailers.

5Organisational Improvement
References
Beauchaine, Theodore P., Itzhak Ben-David, and Aner Sela. "Attention-deficit/hyperactivity
disorder, delay discounting, and risky financial behaviors: A preliminary analysis of self-report
data." PloS one 12.5 (2017): e0176933.
Buehlmaier, Matthias MM, and Toni M. Whited. "Are financial constraints priced? Evidence
from textual analysis." The Review of Financial Studies 31.7 (2018): 2693-2728.
Muda, Iskandar, et al. "THE INFLUENCE OF HUMAN RESOURCES COMPETENCY AND
THE USE OF INFORMATION TECHNOLOGY ON THE QUALITY OF LOCAL
GOVERNMENT FINANCIAL REPORT WITH REGIONAL ACCOUNTING SYSTEM AS
AN INTERVENING." Journal of Theoretical & Applied Information Technology 95.20 (2017).
Tracy, John A., and Tage Tracy. The Comprehensive Guide on How to Read a Financial Report,
+ Website: Wringing Vital Signs Out of the Numbers. John Wiley & Sons, 2014.
Vogel, Harold L. Entertainment industry economics: A guide for financial analysis. Cambridge
University Press, 2014.
Wang, Zhenkun, and Yihan Wang. "Analysis on the Market Effect of Errors in XBRL Formatted
Financial Report of Financial Enterprises." Proceedings of Annual Paris Business Research
Conference. 2015.