halloween

Why Are We Best for Assignment Help in Australia?

300k+ Satisfied
Customers

Star ratings
4.8/5

Based on 6989
Reviews of our
happy customers.

Order Now

Amazing Features We Offer

24*7 Help Service

100% Satisfaction
No Privacy Infringement
Super-fast Services
Subject Experts
Professional Documents

Get Lowest Price

Get A+ Within Your Budget!

    Total Price

    USD 7.33

    Accounting Principles Group Company Analysis Project Bond University

    Introduction

    This report is prepared to analysis annual reports in of two organisations in order to determine financial performance. Analysis of financial statements are done subject to explain key financial indicators and aspects which are helpful in maintaining healthy and optimum financial health of organisation and reduce the risk factors. A structured format is followed to elaborate the concept. A company analysis report contains the aspects and measures which assist financial growth of organisation in systematic manner.

    Objectives

    Aim of this report is to analyse the annual report of two Australian Listed organisations. Drives of performance, risk and values, an overall investment recommendation and companies are defined in this context. Educational objectives of this project are to enhance knowledge and skills in understanding financial statements and evaluating data in excel to determine what informations and details are addressed subject to performance and risk and values of organisations and firms.

    Overview of organisations

    Wesfarmers

    Core Business

    Wesfarmers deals in supermarkets, hotels, liquor and convince stores for office suppliers departmental stores and an industrials division with business in chemicals, fertilisers and energy and industrial and safety products and coal. Wesfarner is one of the Australia's largest private sector shareholder and employee organisation which has employee strength of approx 550,000.

    History

    This is a diversified organisation which was established in 1914 as western 'Australian farmers' cooperative. Deane Hammond was the first chairman of the organisation. It was established due to demand of the rural workers union for finer pay and less hours. Basically organisation was formed to enhance and develop living standards of rural workers and farmers. Empowering rural farmers and workers for their rights were main objectives of this Wesfarmers. In 27 June 1914 the organisation get registered and started working with farmers. Soon association started working with various companies under the Western Australian Farmer Act and began trading form two small rooms at 13 Howard Street, Perth. It moved its new head office just after establishment of three years at 569 Wellington street, Central Perth.

    Journey

    As per growth perspective organisation grown up tremendously. In 1924 it launched first commercial radio station subject to improve lives and livelihood to western farmers. In 1927 it expand organisation with super phosphate Cuming Smith and Mt Lyell Farmers Fertiliser. In 1950 it acquired GASCYNE trading which introduced air conditioned trailers for better condition. It expansion in to collection of art collection in 1977 and launched a takeover bid for CSBP. In 1984 Wesfarmer becomes a public listed company. It acquired 50% shares of Gresham partners. It acquired 100% of CSBP in 1986. there are two major steps was taken by organisation in terms of business expansion plans. It take over Western Colliers which was a mine industry with a new commission and contract.

    In 1993 it acquired Dalgety farmers which was 147 years old corporation with $78 million. The major work of Wasfarmers stared after this merger. It started in capital management and securities from acquisition of Lumley insurance. Company expanded its insurance business further in 2006, with the take over of New Zealand insurance broker Crombie Lockwood and OAMPS LTD with the $700 million. OAMPS was the largest public listed insurance broker. It acquired Cole group in 2007 investing $19.3 billion. This was the time of global financial crisis and Cole's shareholders withdrawal investments from organisation.

    It introduced first reconciliation action plan in 2009 and $4.6 billion equity. In 2013 capital return subject to improve insurance business. It sold insurance underwriter business in Australia and New Zealand to insurance Australia group. Sale was completed in June 2014.

    Performance of Organisation

    Operating performance organisation is also in adequate manner such as return on assets for the year 2017 is 7.10%. return on equity is calculated as 12.25% and return on invested capital as 8.48%. return on capital invested decreased from last year which was recorded as 9.25 % overall effect fall upon organisation as .77% change in equal growth.

    Woolworths Group

    Core Business

    this organisation is one of the largest online supermarket business chain. Which deals in multiple customer products and segments. It mostly deals in vegetables, fruit, meat, packaged foods etc. it sells magazines, household products, DVDs and healthy and beauty products. At present organisation is dealing 1000 stores across Australia. It also supplies pet and baby and stationary procures too. It has multinational brand image across the world in respect of providing fresh foods and customer products. Its loyalty scheme contains the number of incentives for acquiring products. One of it's subsidiary provides reasonable petroleum products at Caltex Woolworths petrol stations.

    History

    Organisation was funded on 5 December, 1924. it opened its business segment in Sydney's Imperial Arcade in the basement. Woolworths opened its second store in 1927 at queen street in Brisbane in rare conditions. It opened first store in New Zealand in 1930, at that time organisation had 16 stores across new South Wales, Queensland and western Australia. In 1937 it introduced its brand image through media channels. This also indicates towards enhancing sustainable growth of organisation. In 1939 it launched staff assurance scheme by giving the team security in their retirement. Till 1940 organisation became able to develop its own warehouse and space for better advancement and growth. Its first ware house was established in 1929 but the size was store was not enough to store products.

    Its core business started form the year 1957 when it put steps towards food industry. It launched first food store in Sydney's Dee why in 1957. grocery range was limited but included fresh vegetables. It major food items are packaged fresh meat sold out of refrigerated cabinets. Till 1959 Woolworth able to inaugurate 300thstore in Wentworthville NSW. In 1960 organisation become first Australia's first nationwide retailer. Company achieved its mission to deliver quality and value to every state and territory in the country.

    Market Condition And Economic Diverse

    This is one of the largest retail sector in Australia. Tesco PLC, Wesfarmers Ltd., Seven & I holdings Co. Ltd and the Kroher Co is most near competitors of organisation. Market cap of woolworths group Ltd was recorded as 26877 and 38625 for seven and I holding co. Ltd. Tesco has also nearest peer which was recorded as 32478. it has largest supermarket chain which is involved in distributing customer satisfactory products and services. It used to trade as Safeway and in all Victorian locations. It has also has private label brands such as Woolworths home brand , Woolworths select, woolworths gold, Woolworths fresh and macro wholefoods market.

    Performance of Woolworth Group

    Growth rate of last three year was recorded as -2.98% net income growth was calculated as -14.48%. Return on assets was calculated as 6.61% and return on equity was recorded as 17.04%. overall return on assets% is calculated as 6.16% return on equity is calculated as 15.30% and return on invested capital is recorded as 13.14%.

    Analysis of Financial Statements

    Income Statement of Wesfarmersof Financial Year 2016 and 2017

    Sales

    30/06/17

    30/06/16

    Total sales

    68444000

    65981000

    Cost of sales

    46774000

    45930000

    Gross profit

    21670000

    20051000

    Operating expenses

       

    Selling general and administrative

    13457000

    12884000

    Others

    2931000

    2702000

    Total Operating Expenses

    64428000

    62812000

    Operating income or loss

    4016000

    3169000

    Income From Continuing Operations

       

    Total Other Income/Expenses Net

    122000

    -2131000

    Earnings before interest and taxes

    4016000

    3169000

    Interest expense

    -219000

    -266000

    Income before tax

    4138000

    1038000

    Income tax expense

    1265000

    631000

    Net income from continuing ops

    2873000

    407000

    Net Income

    2873000

    407000

    Net Profit Available For Shareholder

    2873000

    407000

    Income statement of Wasfarmers Ltd is presented above which defines the profitability of organisation. It is seen that total saless get increased in the year 2017 comparison to year 2016. total sales get increased by $2463000 in percentage 3.73% total increment record for the financial year 2017. Cost of sales get increased by $844000 which increased by 1.83% till the year 2017. gross profit increased by 1619000 which was 8.07% increased from the last year.

    Operating expensed get increased by 1616000 with the incremental change of 2.57%. operating income get increased by 847000 with the incremental change of 26.73%. in income from continuing ops which is increased by 2466000 due to high corporate tax liability organisation had to bear a loss of saless. Interest expenses was recorded as 1265000 fort the year 2017 and 631000 for the year 2016.

    Best Assignment Writers at Your Service!


    apart form credibility there are some other aspects also considered in this context such as discontinued operations which were exist in the year 2014 get reduced and bifurcated in subsiding years. There are some essential aspects are covered in respect of analysing the performance of various groups as income tax expenses, income before tax and net income from continuing ops. Quarterly profit was calculated as 5680500 for the month of 2017. and 5361500 for the quarter of before mid year. And half yearly net profitability was recorded as 106000 for the first half year and 648000 for the second half year.

    Income Statement of Woolworths Group For The Year Ending 2016 and 2017

    Sales

    25/06/17

    26/06/16

    Total sales

    55668600

    53663700

    Cost of sales

    39739700

    38538600

    Gross profit

    15928900

    15125100

    Selling general and administrative

    13811800

    13905700

    Non-recurring

    -

    -

    Others

    -244200

    -275500

    Total Operating Expenses

    53307300

    52168800

    Operating income or loss

    2361300

    1494900

    Income from continuing operations

       

    Total other income/expenses net

    -228900

    -245600

    Earnings before interest and taxes

    2361300

    1494900

    Interest expense

    -201600

    -255900

    Income before tax

    2132400

    1249300

    Income tax expense

    650400

    486400

    Minority interest

    350100

    311300

    Net Income From Continuing Ops

    1482000

    762900

    Non-recurring events

       

    Discontinued operations

    111400

    -3110800

    Net income

    1533500

    -1234800

    Net Profit Available For Share Holders.

    1533500

    -1234800

     Profitability condition of Whoolworths group is in favourable condition. As per above given income statement following aspects come in existence such as the total sales was recorded as 55668600 for the year 2017 and 53663700 for the year ended 2016. Sales get increased by 2004900 with the percentage of 3.73%. it is calculated that cost of sales was recorded as 39739700 and 38538600. there is difference is calculated as 1201100 with the percentage change of 3.11%. Avail my assignment help from professionals of Global Assignment Help Australia.

    Difference between Selling and distributing expenses for the year 2016 and 2017 was calculated as 93900 with the incremental change of 0.67%. total operating expenses was recorded for the year of 2017 was 5,33,07,300 and for the year of 2016 was 5,21,68,800 with the difference of 1138500 and percentage change is recorded as 2.18%. operating income is recorded as 2361300 for the year ended 2017 and 1494900 for the year ended as 2016, difference was recorded as 866400 with the incremental change of 57.95% Quarterly profitability of organisation was recorded in three forms such as gross profit, operating profit and net profit. Gross profit for the first quarter was recorded as 4360500 and 484500 for the net profit.

    Analysis of Balance Sheet

    Balance Sheet of Wesfarmers Limited For The Year Ended 2016 and 2017

    Period Ending

    30/06/17

    30/06/16

    Current Assets

     

     

    Other current assets

    491000

    1185000

    Net receivables

    1633000

    1628000

    Inventory

    6530000

    6260000

    Cash and cash equivalents

    1013000

    611000

    Total Current Assets

    9667000

    9684000

    Property plant and equipment

    9440000

    9612000

    Other assets

    1369000

    1809000

    Long-term investments

    703000

    605000

    Intangible assets

    4576000

    4625000

    Goodwill

    14360000

    14448000

    Deferred long-term asset charges

    971000

    1042000

    Total Assets

    40115000

    40783000

    Current Liabilities

       

    Accounts payable

    6615000

    6491000

    Other current liabilities

    1028000

    845000

    Short/current long-term debt

    5413000

    7303000

    Total Current Liabilities

    10417000

    10424000

    Long-term debt

    4066000

    5671000

    Other liabilities

    1691000

    1739000

    Total Liabilities

    16174000

    17834000

    Stockholders' Equity

       

    Treasury stock

    164000

    138000

    Retained earnings

    1509000

    874000

    Other stockholder equity

    164000

    138000

    Common stock

    22268000

    21937000

    Total Stockholder Equity

    23941000

    22949000

    Net Tangible Assets

    5005000

    3876000

    Balance sheet of Wasfarmer is defined subject to analyse financial position of organisation. As per above analysis of balance sheet of Swarmer current assets for the year 2017 was calculated as 9667000 and 9684000 for the year 2016. current assets get increased by 17000 with the 0.17% percentage. Total assets for the year 2017 was recorded as 40115000 and 40783000 for the year 2016. total assets get increased by 668000 with the incremental change of 1.63%.

    Total current liabilities for the year 2017 was recorded as 10417000 and 10424000 for the year ended 2016. total liabilities was recorded for the year 2016 was recorded as 161740009 and 17834000 for the year ended 2017. stockholder's equity was recorded as 23941000 for the year 2016 and 22949000 for the year 2016. net tangible assets were recorded as 5005000 for the year 2017 and 3876000 for the year ended 2013. overall changes are seen towards incremental change in respect of tangible and intangible assets.

    Balance Sheet of Woolworths Groups For The Year Ended 2016 and 2017

    Period Ending

    25/06/17

    26/06/16

    Current Assets

       

    Other current assets

    1259700

    1156500

    Net receivables

    410500

    433500

    Inventory

    4080400

    4558500

    Cash and cash equivalents

    909400

    948100

    Total Current Assets

    6994200

    7427000

    Property plant and equipment

    8437500

    8262800

    Other assets

    833100

    1113300

    Long-term investments

    118200

    108500

    Intangible assets

    2316400

    2341000

    Goodwill

    4216400

    4249600

    Deferred long-term asset charges

    372300

    497700

    Total Assets

    22915800

    23502200

    Current Liabilities

       

    Short/current long-term debt

    3030500

    4361600

    Other current liabilities

    1168800

    1511800

    Accounts payable

    5068200

    4809100

    Total Current Liabilities

    8824200

    8992700

    Other liabilities

    1438500

    1856700

    Minority interest

    350100

    311300

    Long-term debt

    2774700

    3868000

    Total Liabilities

    13039700

    14720300

    Stockholders' Equity

       

    Treasury stock

    252300

    246700

    Retained earnings

    3554700

    2876900

    Other stockholder equity

    252300

    246700

    Common stock

    5719000

    5347000

    Total stockholder equity

    9526000

    8470600

    Net Tangible Assets

    2993200

    1880000

    Financial position of Woolworths groups shows following results in terms of sustainability. As per balance sheet figures of 2017 and 2016 was recorded in three terms such as current assets, total assets, current liabilities and total liabilities and stock holders equity. Current assets for the year 2017 was recorded as $6964200 and $7427000 for the year 2016. current assets get decreased in the year 2017 by 462800 with the incremental change of 6.23%. total assets were recorded for the year 2017 was 22915800 and 23502200 for the year 2016, difference with 586400 and 2.50% incremental changes.

    Current liabilities for the year ended 2017 was calculated as $8824200 and $8992700 for the year 2016. current liabilities get decreased by $168500 in 2017 due to repayment of short term debts and payment to creditors. Total liabilities was recorded as 13039700 for the year 2016 and 14720300 for the year 2016, percentage difference was calculated as 11.41%. stock holder's equity was recorded as 9526000 for the year 2017 and 8470600 for the year ended 2016. this change in stock holders's equity as 11.079%.

    If you are facing issues in completing your homework you must visit us. You will get Homework Helpers experts that will give you at affordable prices.

    Analysis of Cash Flows

    Cash Flow Statement of Wesfarners of Financial Year 2016 and 2017

    Period Ending

    30/06/17

    30/06/16

    Net income

    2873000

    407000

    Operating activities, cash flow provided by or used in

       

    Depreciation

    1126000

    1175000

    Changes in other operating activities

    -104000

    29000

    Changes in liabilities

    204000

    -88000

    Changes in inventory

    -296000

    -444000

    Changes in accounts receivable

    87000

    17000

    Adjustments to net income

    -106000

    2153000

    Total Cash Flow From Operating Activities

    4226000

    3365000

    Investment activities, cash flow provided by or used in

       

    Capital expenditure

    -1559000

    -1794000

    Investments

    -2000

    -2000

    Other cash flow from investment activities

    -

    -

    Total cash flow from investment activities

    -53000

    -2132000

    Financing Activities, Cash Flow Provided By or Used In

       

    Sale purchase of stock

    1000

    1000

    Net borrowings

    -1774000

    936000

    Dividends paid

    -1998000

    -2270000

    Total Cash Flow From Financing Activities

    -3771000

    -1333000

    Change in cash and cash equivalents

    402000

    -100000

    As per analysis of cash flow statements there are some essential figures and aspects come across subject to analyse rotation of cash during the year 2016 and 2017. cash flow of Wesfarmers is calculated in three major terms such as

    • cash flow from operating activities which contains the over all cash inflow from operating activities. Cash flow from operating activities for the year ended 2017 was calculated as 4226000 and 3365000 for the year 2016. cash flow from operating activities get increased by 861000.
    • Cash flow form investing activities was recorded as -53000 for the year 2017 and -2132000 for the year 2016. this impact fall upon over all changes such as investment in acquiring new assets and sale of old machinery.
    • Cash flow from incest activity indicates towards analysing the dereference between financial activities. As per analysis of financial ratios it is seen that capital expenditures for the year 2017 was recorded as -1559000 and -1794000 for the year 2016 which resulted total cash from financing activity is calculated as -53000 for the year 2017 and -2132000 for the 2016.

    Cash Flow Statement of Woolworths Group For The Year Ending 2016 and 2017

    Period Ending

    25/06/17

    26/06/16

    Net income

    1533500

    -1234800

    Operating activities, cash flow provided by or used in

       

    Depreciation

    1037600

    985300

    Adjustments to net income

    441300

    1085600

    Changes in accounts receivable

    2400

    29100

    Changes in liabilities

    382500

    -534100

    Changes in inventory

    367600

    204100

    Changes in other operating activities

    -687500

    1881800

    Total cash flow from operating activities

    3122000

    2357500

    Investment activities, cash flow provided by or used in

       

    Capital expenditure

    -1886800

    -1938300

    Investments

    -

    -1300

    Other cash flow from investment activities

    3500

    3200

    Total cash flow from investment activities

    -1431400

    -1266700

    Financing activities, cash flow provided by or used in

       

    Dividends paid

    -540900

    -1184800

    Sale purchase of stock

    55500

    55500

    Net borrowings

    -1222400

    -365600

    Other cash flow from financing activities

    -21500

    75500

    Total cash flow from financing activities

    -1729300

    -1474900

    Effect of exchange rate changes

    -600

    6700

    Change in cash and cash equivalents

    -39300

    -377400

    Cash flow statement of Woolworth Group is defined in respect of analysing cash rotation and requirement during the year. As per analysis of cash flow statement there are following figures are analysed such as cash flow from operating activity was recorded as 3122000 for the year 2017 and 2357500 for the year 2016. this is one of the essential aspect which need to analyse for proper analysis. Cash flow form investing activities was receded as -1431400 for the year 2017 and -1266700 for the year 2016. cash flow form financing activity is calculated as -1729300 for the year 2017 and -1474900 for the year ended 2018.

    RATIO Analysis

    Wesfarmer Ltd

    Ratios

    Formula

    Results

    Current Ratio

    Current assets / current liabilities

    9667000 / 10417000 = 0.928

    Debt equity ratio

    Debts / equity

    4066000 / 23941000 = 0.1698

    Return on assets

    Total assets / revenues

    (40115000 / 68444000)*100 = 58.61%

    Profit ratio

    Net profit / revenues

    (2873000 / 68444000)*100 = 4.19%

    Woolworths Group

    Ratios

    Formula

    Results

    Current Ratio

    Current assets / current liabilities

    6994200 / 8824200 = 0.79

    Debt equity ratio

    Debts / equity

    2774700 / 9526000 = 0.29

    Return on assets

    Total assets / revenues

    (22915800 / 55668600)*100 = 41.16%

    Profit ratio

    Net profit / revenues

    (1533500 /55668600)*100 =2.75%

    SWOT Analysis

    SWOT of Wesfarmer Ltd

    Strength

    ·Strong capital structure

    ·Impressive and string goodwill

    ·Community development initiatives

    ·sales through online features

    Weakness

    ·Being a market leader always chances to loss reputation

    ·Loss of reputed and functional experiences

    Opportunities

    ·opportunities to grow business at large scale

    ·Expand the business scale across Australia.

    Threats

    ·strong market competition

    ·Economic downturn leading to boost the structure

    SWOT of Woolworths Group

    Strength

    ·Oldest organisation

    ·Large number of stock market

    Weakness.

    ·Low international Presence

    ·late entry in online retail sector

    Opportunities

    ·To grow business at large level

    ·huge retail industry

    Threats

    ·Loss of slow growth

    ·huge competition

    Recommendation

    As per above analysis of financial statements of Werfarmers Ltd some certain points come across at which organisation should pay attention for better financial and operational growth. Organisation need to analyse the financial performance with the help with strong capita l structure and cash inflows. It is require to improve the liquidity to manage the current liabilities and short term debts of organisation. Cis the measure current liability of Wesfarmer Ltd is seen 0.928 which need to improve for the subsiding year. 1 is considered optimum current ratio which is essential subject to evaluate and maintain optimum level of current assets to repay off liabilities

    AS per analysis of financial statements of Woolworths group subject to analyse financial performance of organisation. Liquidity position of organisation is shows the following aspects subject terms of current ratio. Current ratio is calculated as 0.79 for the year 2017 and the profitability ratio is calculated as 58.16%. it is required to maintain optimum level of net current ratios subject to settlement of short term loans debts and credits.

    Need Finance assignment help in Australia from professional experts to score higher grades. Contact us to get the best assignment writers for your assignments.

    Conclusion

    This report is prepared to analyse the performance of two Australian countries which deals in the same segments. The objectives and importance of the report is determined in this report. Financial statements of organisation of last two years are analysed in order to determine the financial position of the organisation. Overview of both the organisation's calculations and recommendations are given for both the organisations are also determined in this context. Ratio analysis, swot analysis, recommendations are given for better growth and development of the organisation.

    Reference

    • American Gastroenterological Association, 2011. American Gastroenterological Association medical position statement on the management of Barrett's esophagus.Gastroenterology.140(3). pp.1084-1091.
    • Cesari, D. & et. al., 2012. Analysis of raw soils & their re-suspended PM10 fractions: Characterisation of source profiles & enrichment factors.Applied Geochemistry.27(6). pp.1238-1246.
    • Chauton, M.S. & et. al., 2015. A techno-economic analysis of industrial production of marine microalgae as a source of EPA & DHA-rich raw material for aquafeed: Research challenges & possibilities.Aquaculture.436.pp.95-103.
    • Danuletiu, A.E., 2010. Working capital management & profitability: a case of Alba county companies.Annales Universitatis Apulensis: Series Oeconomica.12(1). p.364.
    • Fridson, M.S. & Alvarez, F., 2011.Financial statement analysis: a practitioner's guide(Vol. 597). John Wiley & Sons.
    • Higgins, R.C., 2012.Analysis for financial management. McGraw-Hill/Irwin.
    • Hofmann, E. & Lampe, K., 2013. Financial statement analysis of logistics service providers: ways of enhancing performance.International Journal of Physical Distribution & Logistics Management.43(4). pp.321-342.

    You may also like to read: Unit 1 Financial Accounting Level 6 Regent College

    Accounting Samples

    Amazing Discount

    UPTO50% OFF

    Subscribe now for More Exciting Offers + Freebies

    Download Full Sample

    Cite This Work

    To export references to this Sample, select the desired referencing style below:

    Students sometimes cannot express their inability to work on assignments and wonder, "Who will do my assignment?" To help them understand the complexities of writing, we are providing "samples" on various subjects. Also, we have experienced assignment writers who can provide the best and affordable assignment writing services, essay writing services, dissertation writing services, and so on. Thus, don't wait any longer! Place your order now to take advantage of discounted deals and offers.

    Number successfylly updated