In the financial year the company has extended Woolworth financail analysis business operation but has kept its traditional policies as well. Qasim Saleem, Market Based Ratios Market based ratios are earning per share, dividend yield ratio, dividend payout ratios, price cash flow ratio.
The company has achieved significant level of development and growth across the Australian retail and there are various such factors that have contributed towards its higher such growth. There are several practices for analyzing the financial statement of a company, by determining Common Size Statements, Financial Ratios of a company that can be done.
Working Capital ratio indicates how quick the current liabilities will be converted into current assets; the same has been decreased to 0. The threat of rivalry as assessed within the Australian retail indicates that it is significantly higher mainly because of the fact that there are few major competitors such as Woolworths, Wesfarmers, Coles Supermarket, Asda etc that are competing against each other for larger market share.
The SWOT analysis stands for strengths, weakness, opportunities and threats and the application of this tool in the context of Woolworths is performed as follows: There should be a strong internal control for regulation of debts and long term obligations.
The company does business in food, liquor, petrol, chain of departmental stores, hotels. Du Pont analysis gives in detail which part of the business is not performing well.
It is recommended that Woolworths should aim at framing its strategy consistent with that of political conditions as prevalent across the country. A growing operation of the company also have some constraints relating to internal control for which they are negotiating with the performance capability, they are addressed to be improved so that the risks relating to financial and operational efficiency could be mitigated, otherwise it would increase the cost of productions in future days.
However, a diminishing financial efficiency has been observed while computing the efficiency ratios. The optimum working capital ratio is 1, the ratio less than that indicates that the company is not ready to pay off its debts with the current assets available. EBIT margin stands for Earnings before interest and tax to net sales revenue, this is also not notified by the Generally Accepted Accounting Principle, these ratios are useful for the credit rating agencies to analyze the internal system of a company.
The political condition affects the retail industry in Australia and also the performance of Woolworths to a greater level.
Policies and regulations should be properly implemented so that no clash of sentiments and ego involves for maintaining the same. A decline in the economic market conditions across Australia has affected the performance of Woolworths significantly, as there has been the decline in the economic activity in the markets of Australia and New Zealand and Woolworths.
The overall group profit of the company has been increased as per the financial statement, but there are cases from which it could be inferred that the performance of the company is still suffering from some major drawbacks like liquidity and solvency issues, as the current assets of the company is lesser than the current liabilities.
The analysis also indicated that the internal environment conditions have also impacted the growth potential of Woolworths and based on the overall strategies, the following recommendations are considered essential: Further, the need to operate in a fair way has also affected the performance of Woolworths, as it is required to adapt fair policy in performing its business operations Wetherly and Otter, EBITDAR margin stands for Earnings before interest, taxes, depreciation, amortization, rent to net sales revenue is not a computation which has been prescribed by Generally Accepted Accounting Principles.
The analysis of the macro environmental factors impact the industry conditions can be better analysed by way of applying important strategic analytical tools such as Porter five forces and PESTEL analysis as follows: A decrease in the rate indicates there is still room for improvement in the utilization of assets.
More places and business sites have opened for allocation of services amongst several cities of Australia. The major role has been played by the strategy of the organisation, and as a result, this strategic analysis report is likely to perform a critical analysis of such strategy of Woolworths in a positive manner.This report focuses on two parts, Woolworths Ltd Strategic analysis and strategic review in order to provide advise to the Board and Senior Management of Woolworths to obtain a.
Woolworths Financial Perfomance An analysis of Woolworth financial performance over the last two financial years show that the firm are improving their figures by raising or keeping their Liquidity, Gearing, Profitability or Efficiency consistent.
The report analysis the financial position of the company for the year Financial Analysis of Woolworths Limited 10 October By: Huatong (Claire) Liu To: Potential investors Executive Summary The primary purpose of this report is to determine whether Woolworths Limited is an appropriate and profitable company to invest in.
Specific objectives include analysis of annual reports of Woolworths and its competitors. SWOT analysis of Woolworth is analysed in detail by considering various strategic managemet tools.
Appropriate recommendations are also provided. Aug 22, · Updated key statistics for Woolworths Ltd. - including wolwf margins, P/E ratio, valuation, profitability, company description, and other stock analysis data.Download