...statements. Every accountant and financial analyst will need to be able to calculate financial ratios and analyse related non-financial data in order to see whether the company is successful or not and suggest what can be improved in the operations if needed. Therefore, there was thorough financial investigation of BHP Billiton, Transfield Services Limited and Woolworths Limited. In order to investigate these companies activity, the 2008 and 2009 annual reports were retrieved from official companies’ websites. Also general information on industry averages for various ratios was obtained from financial websites as well as ASX website. Specific events that could have impacted a company’s operations were followed on the related web-links. In order to make a financial decision, financial analysis of financial ratios was conducted. In order to have the most necessary information following ratios were considered to be most important in making investment decision - profitability ratios that measure a company’s earning ability, in the broad categories of margins and returns. The major margins in our case were gross profit and net profit margin. Gross profit margin identifies how much of the sales dollar remains after covering the cost of the goods or services sold. The higher the percentage, the better the company is doing in generating potential profitability. Net profit margin reflects the residual of all items of revenue and expense from the Income Statement and the percentage...
Words: 5098 - Pages: 21
...Table of Contents Part 2 - COMPANY RESEARCH / GRAPHS/ INVESTOR INFORMATION 3 (A) Brief description of each company 3 (B) Graph of daily share price of each company and all ordinary index4 Qantas Airways Ltd (QAN)4 Woolworths Ltd (WOW)5 Super Retail Group (SUL)5 All ordinary index 6 Share price of 3 company and all ordinary index6 (C) Overview of the share price performance and overall trend of the Australian share-market7 Qantas Airways Ltd (QAN)7 Woolworths Ltd (WOW)8 Super Retail Group (SUL)9 (D) Calculation gain or loss on portfolio10 Qantas Airways Ltd (QAN)10 Woolworths Ltd (WOW)10 Super Retail Group (SUL)10 (E) Recommendation for each company11 Part 3 - INDENTIFICATION OF KEY FINANCIAL DATA AND RATIO ANALYSIS12 (A) Identification of key financial data12 (B) Ratio analysis12 Profitability ratio12 Stability ratio13 Liquidity ratio13 Explanation of ratio in different company14-17 Conclusion: investment decision17 REFERENCE LIST18 APPENDIX19 PART 2 COMPANY RESEARCH / GRAPHS / INVESTOR INFORMATION (A) Brief description of each company | Qantas Airways Ltd | Woolworth Ltd | Super Retail Group | Product And Service Provided By The Company | Qantas Airways Ltd have built a reputation for excellence in safety, operational reliability, engineering and maintenance, and customer service.The main business is the transportation of customers using two complementary airline brands...
Words: 2990 - Pages: 12
...summary: This report is aiming to disclose how the Annual report of Woolworths for 2012 apply the accounting standard related to estimation uncertainty and accounting policy judgments. Furthermore, the potential gap between Woolworths’ current practice and the accounting standard requirements will also be discussed. Paragraphs 122- 124 of AASB101 has explained the requirements of significant accounting policy judgments and paragraphs 125-133 has detailed what need to be done for estimation uncertainty. According to these standards, Woolworths disclosed how the company determined the carrying amounts of assets and liabilities and explained the company’s policies to response the uncertainty due to foreign currency in their notes to the consolidated financial statement. Judgments about leases assets and liabilities and judgments about subsidiaries were also can be found in the notes. However, it can be indicated that some potential gaps still exist between Woolworth’s report and the accounting standard. For example, there is no assumption for how to revalue the fair value of some tangible assets in specified circumstance. What’s more, the company did not mention the sensitivities of carrying amounts of inventories and how to face these sensitivities. Therefore, further improvements need to be done in the next year’s annual report of Woolworths. Introduction: This report is an evaluation of Woolworths’ Annual Report in 2012, it will judge whether notes to Woolworth’s...
Words: 1886 - Pages: 8
...COMPANY PROFILE Woolworths Limited REFERENCE CODE: 2FF5536D-6BA6-4CE5-81DF-4EABB0A5A391 PUBLICATION DATE: 8 Jul 2014 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. Woolworths Limited TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts...............................................................................................................3 SWOT Analysis.....................................................................................................4 Woolworths Limited © MarketLine Page 2 Woolworths Limited Company Overview COMPANY OVERVIEW Woolworths Limited (Woolworths or 'the company') owns and operates retail stores that sell food, liquor, fuel, general merchandise and home improvement products in Australia and New Zealand. It is headquartered in Bella Vista, Australia, and employs more than 197,000 people. The company recorded revenues (excluding financial income) of A$58,921.7 million (approximately $60,506.7 million) during financial year ended June 2013 (FY2013), an increase of 6.9% over FY2012. The operating profit of the company was A$3,594.6 million (approximately $3,691.3 million) during FY2013, an increase of 7.4% over FY2012. The net profit was A$2,259.4 million (approximately $2,320.2 million) in FY2013, an increase of 24.4% over FY2012. KEY FACTS ...
Words: 2473 - Pages: 10
...Individual Assignment Woolworths in Ghana Individual Assignment Woolworths in Ghana Executive Summary This report analyzes the current marketing strategies of Woolworths in Ghana from four perspectives: products, price, project and promotion. Also, it will briefly mention the company’s successful marketing strategy in other African countries. According to what Woolworths has accomplished in Ghana, the recommendations in this report are generated based on the findings and analyses of Ghana environment. In particular, Ghana’s social, political, legal and economic factors will be presented as they relate to the commercial atmosphere. The recommendations, which are meant to help Woolworths define its future development, are as follows: • Seek more opportunities in Ghana and open more Woolworths C&GM stores in Accra. • Utilize social media to build strong brand awareness among Ghanaians. • Maintain positive, healthy relationships with the government of Ghana for further development. Table of Contents Executive Summary 1 Table of Contents 2 Introduction 3 Company Description and Current Marketing Strategy Analysis 4 Company Description and Analysis 4 Scope and Limitations 5 Description of Current Marketing Strategy of Woolworths 5 Product 5 Place 6 Promotion 6 Price 6 Market/Business Environment Analysis and Recommendations 8 Economic 8 Social 9 Political 10 Legal 10 Reference List 12 Introduction Woolworths is a familiar retail...
Words: 1975 - Pages: 8
...Woolworths Analysis Strategic Marketing Management Executive Summary The following is the assignment given to us for our “Strategic Management” course. The paper discusses in depth about the company, Woolworths, which is one of the largest retail stores in Australia. The report enriches the knowledge about environmental analysis, SWOT analysis, the financial and pricing analysis, target market, segmentation and market analysis of Woolworths. After studying the company’s overall performance it is my recommendation for the company to manage and plan ruthlessly, manage the operations locally and globally by managing campaigns tactically and have open communication channels. The overall environment of the company is strong. There are few major competitors which possesses threat to the company. The company has expanded its operations and has expanded into New Zealand and India as well. The paper also discusses the new marketing strategies for Woolworths. We have applied strategic management concepts and models to design new marketing strategies for the company. Table Of Contents 1. Introduction……………….………………………………………………………..………………………………………………… 5 2. Background……………………………………………………………………………………………………...…………………… 6 3. SWOT Analysis…..…………………………………………………………………………………………………….……………. 7 4. Segmentation, Targeting & Positioning of Products………………………………………………………………………………… 5. Marketing Mix Analysis…………………………………………………………..…………………………………………………. 6. Financial/Pricing...
Words: 3903 - Pages: 16
...ABSTRACT In this valuation report, we will analyze the performance of Metcash and Woolworths (Australia) in the past six years from 2007 to 2012 and make some forecasts in order to aid investors in making decisions about investments between these two companies. Two methods of DCF valuation and relative valuation are used during the analysis. Firstly, we estimate FCFF with calculated WACC to determine the two companies’ stock price, comparing their actual current stock price. Secondly, we analyze P/E Ratio, P/S Ratio and EV/EITDA Ratio to make a comparison between the two companies and average industry. Our estimation will show that both Metcash and Woolworth are undervalued and suitable for investment 1. Overview : Metcash Limited(MTS) and Woolworths Limited(WOW) 3 1.1 Metcash Limited 3 1.2 Woolworths Limited 3 2. Metcash DCF valuation within FCFF approach 4 2.1 Weighted average cost of capital 4 2.1.1 Cost of equity 4 2.1.2 Cost of debt 4 2.1.3 Capital structure analysis 5 2.1.4 Effective tax rate analysis 5 2.2Estimation of FCFF 6 2.2.1 Growth rate expectation 6 2.2.2 FCFF and present value 6 3. Woolworths Limited DCF valuation within FCFF approach 7 3.1 Weighted average cost of capital 7 3.1.1 Cost of equity 7 3.1.2 Cost of debt 8 3.1.3 Capital structure analysis 8 3.1.4 Effective tax rate analysis 9 3.2 Estimation of FCFF 10 3.2.1 Growth rate...
Words: 2467 - Pages: 10
...1.1 Introduction 1.1.1 Origin of integrated reporting Over the years companies owed it to shareholders to annually give reports that are a medium of accountability to shareholders. The business success prospects of companies relied on annual reporting that has been biased towards the financials aspects of the company’s activities such as financial position, financial performance and the flow of cash in and out of the company. The modern investor has expanded focus beyond the financial return on investments in companies and became more concerned with the sustainability in the performance of companies as Abeysekera (2013) puts it. This development has effectively challenged the outlook of the reports that has been based on the Annual Financial Statements and evolved into King III (2009) which recommended for the introduction of integrated reporting as the new reporting approach towards addressing the expectations of investors. The King III Code of reporting emerged was incepted in response to the promulgation of the Companies Act of 2008 and designed to be usable by all entities. The Annual Financial Reports on financial performance, sustainability and governance disclosures often fell short to draw the relationship between the organisation’s corporate strategy, financial performance and the performance on the environmental aspects, IRCSA (2011). In addition to this is the fact that financial information is not sufficient for an organisation or investor to make informed decision...
Words: 3247 - Pages: 13
...References 13 1.0 Introduction According to AS/NZS ISO 31000:2009, risk management consists of 6 components which are establishing context, identifying risks, analyzing risks, evaluating risks, treating risks and monitoring and reviewing risks. It could help create and protect value, improve decision making and explicitly solve uncertainty. In this report, Woolworth Limited will be the business case to be discussed. The report will start with classifying, then analyzing and evaluating relevant risks, followed by a risk register, risk treatment plan as well as the treatment action plan. Recommendations and conclusion will also be given at the end. 2.0 Statement of case Woolworth Limited is an Australian corporation which was established in 1924 in Sydney. It is now one of the largest supermarket chains with more than 3,000 stores located in Australian and New Zealand. The services it provided include span food, general merchandise, petrol, liquor and home improvement. It has over 198,000 employees and thousands of business partners such as local farmers, producers and manufactures. The main competitor of Woolworth is Coles who also has relatively large market share in providing commodities and fresh food and liquor. In order to beat its main rival,...
Words: 2368 - Pages: 10
...Executive summary This report presents a detailed financial performance analysis of Woolworths Limited for Financial Years (FY) 2013 and 2014. The report takes an approach that aims to highlight industry trends before commenting on the financial performance of the company. This critical analysis is carried out through the examination of important financial ratios to assess the short-term solvency (liquidity), long-term solvency, profitability, management’s efficiency, and market based ratios of Woolworths. Finally, the report ends with a concluding comment offering input on the managerial directions that are currently taken by Woolworths and how market value will continue to increase based on sound decisions and management. Table of contents 1. Introduction............................................................................................................... 7 2. Economic Outlooks…............................................................................................... 7 3. Industry Profile………………….............................................................................. 7 4. Ratio Analyses…………………………………………………….......................... 8 4.1 Liquidity Analysis................................................................................................... 8 4.2 Long-Term Solvency Analysis.................................................................................9 4.3 Profitability Analysis......................................
Words: 3378 - Pages: 14
...in order to have a long-run survival in the marketplace. Every organisation is aiming to be efficient and effective in operation. Thus, they have to be sure that consumers and customers have a freedom to choose goods at the best price and perceive a service that match their preferences. To succeed, the company has to be certain about which part of consumers or customers they want to satisfy. In other words, they have to create a more focused target market. This idea is often called market segmentation. Market segmentation can be defined as a marketing strategy that involves dividing a broad target market into narrower target consumers who have common needs and wants (Goldstein 2007). ALDI has been regarded as a successful company that can meet the expectations of customers whereas the other existing firms are unable to fulfill. ALDI was established by Theo and Karl Albrecht in Germany in 1948 (ALDI n.d.). In 1960, ALDI had opened almost 300 stores between the Ruhr Valley and Aachen. Theo and Karl then divided the business into two independent companies: ALDI Süd - to service the South, and ALDI Nord - for the North (Bonn 2006, p. 60). By now, ALDI has become a successful company with owning over...
Words: 3253 - Pages: 14
...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...
Words: 7170 - Pages: 29
...Discussion and Evaluation of Woolworths Foods purchasing process Authors: Ian dlamini, Sne Byron Van Herder, Naseer Khan, Mohamed Kadar & Muhammad Moola, Executive summary Woolworths is one of the biggest retail stores in South Africa. Founded in the early nineteen thirties by Max Sonnenberg, Woolworths has grown to a retail giant with over four hundred stores throughout Africa and Middle East. Along with Woolworths being of such large proportions it now is listed on the Johannesburg Stock Exchange. Within our study of Woolworths we will be examining the purchasing process of this retail giant and in order to achieve this we will employ tools and techniques to simplify our study. This study will compromise of a detailed discussion, illustration and evaluation of Woolworths purchasing process and for the purpose of our study we narrow down the study to a smaller aspect of Woolworths namely Woolworths Food. As we look closer into exactly what is required we employ the use of tools to aid in our study. These will consist of a SWOT analysis of the company, a PESTLE analysis of the purchasing processes and a PORTERS five forces analysis. We will then narrow down the purchasing process to one area of Woolworths namely Woolworths Food and base our study on that. A concise discussion is to follow in which we outline the most important factors that influence the purchasing decision. Included in the factors to be mentioned within our investigation we would refer to...
Words: 5362 - Pages: 22
...Woolies Strategies Woolworths is a supermarket with 84% of group sales being in food and liquor. This outline focuses on the supermarket and food retailing operations of this company. Woolworths quickly established itself as one of the major players in the supermarket industry and has been rated as Australia’s premier retailer . Woolworths has annual sales of almost $45 billion and continues to expand and lift profitability despite significant competition and daily challenges. Woolworths’ core business focus is on customers, and seek to re-invigorate their products through investment in price, range, merchandise and quality. more on what woollies thinks its like blurb stuff Hollander’s thesis argues that over time retailers move from being low- price, low- status operators to high-cost, high-price merchants who are then vulnerable to new competition. In 1987, Woolworths avoided falling victim to this market force by reinventing itself as both a low-cost and high-service operator, most visibly by emphasising its position as the most credible fresh-food retailer in the marketplace. Woolworths “fresh food” innovation has been considered an example of marketing driving by being proactive in relation to consumer needs. This innovation became important due to the emerging concern for a healthy global environment, extending right through to consumers expectations regarding food standards. Woolworths re-invented store-design by utilising larger stores which incorporated the “store-within-a-store”...
Words: 1016 - Pages: 5
...Introduction 2 Defining Sustainability 2 What Sustainability means to Woolworths 3 Corporate Stakeholders of Woolworths 3 Woolworths Drive for Change 5 Integrated Reporting 6 Why Integrated Reporting? 6 Woolworths Integrated Reporting 7 The Future of Integrated Reporting 7 Conclusion 8 Word Count: 1995 Executive Summary This report examines the new world of sustainability reporting, and the complex web of stakeholders. It focuses particularly on the demands for new kinds of transparency which serve the interests of the environment and society. In this report, Woolworths, one of our major competitors has been analyzed in order to understand how they have evolved the concept of sustainability and how they have applied it to their organizational level. As a result, Woolworths has placed our organization at a competitive disadvantage. The report finds Woolworths future prospects as a positive template in managing our organization. Their engagement on sustainability issues with their stakeholders, customers, suppliers, investors and employees through their Sustainability Strategy have placed them in the lead. This report provides an opportunity on sustainability and integrated reporting for our organization. Introduction Over the years there has been an increase in pressure and concern over the impact that organizations have had on the environment and the society. As a result, organizations are being challenged to actively account for and manage...
Words: 2140 - Pages: 9
