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Financial Ratio Analysis Pnp vs Woolworths

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Submitted By steynjoe123
Words 7170
Pages 29
TABLE OF CONTENTS

INTRODUCTION

ASSUMPTIONS

ANALYSIS OF FINANCIAL STATEMENTS

PROFITABILITY
Pick n Pay Stores Limited Profitability
Woolworths Holdings Limited Profitability
Profitability Summary

SEGMENTAL ANALYSIS ON PROFITABILITY
Pick n Pay Stores Limited Segment Profitability
Woolworths Holdings Limited Segment Profitability

LIQUIDITY
Pick n Pay Stores Limited Liquidity
Woolworths Holdings Limited Liquidity
Liquidity Summary

EFFICIENCY
Pick n Pay Stores Limited Efficiency
Woolworths Holdings Limited Efficiency
Efficiency Summary

GEARING
Pick n Pay Stores Limited Gearing
Woolworths Holdings Limited Gearing
Gearing Summary

CASH FLOW ANALYSIS
Pick n Pay Stores Limited Cash Flows
Woolworths Holdings Limited Cash Flows

WOOLWORTHS HOLDINGS LIMITED VS PICK N PAY STORES LIMITED:
AN INVESTOR’S POINT OF VIEW

CONCLUSION

BIBLOGRAPHY AND REFERENCES

INTRODUCTION

After all transactions have been recorded in the financial system, a final trial balance is prepared at the end of the financial year that results in the preparation of the annual financial statements to indicate to all interested parties the financial results of the years activities and the financial position of the entity at the year-end date. Financial statements are used by the company to measure the effectiveness of the objectives set for the year against actual outputs. A number of methods exist to measure financial position, financial performance through profitability, liquidity and other ratios, analysis and investors rely on this information to determine the internal rate of return, dividends and share prices to some extent as per Sowden-Service (2011).

ASSUMPTIONS

The following key assumptions were made when obtaining the consolidated annual financial statements for this analysis.
The PnP financial statements used for the

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