ASSIGNMENT 1 (20 MARKS)In gradebook you will see a section “Company number” with a number between 1...

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ASSIGNMENT 1 (20 MARKS)In gradebook you will see a section “Company number” with a number between 1 and 3. This is thenumber of the company that you are allocated for this assignment.1. JB Hi Fi Ltd (JBH) http://www.jbhifi.com.au2. Wesfarmers Ltd (WES) http://www.wesfarmers.com.au3. Woolworths Ltd (WOW) http://www.woolworthsgroup.com.auRequired:A. Access the annual reports for your allocated company for the years 2014, 2016 & 2018 in theAssessment folder of Blackboard. You should only use the figures from the annual reportsprovided - do not access your reports or figures from any other source.B. These annual reports will provide you with six years of financial statements for 2013, 2014,2015, 2016, 2017 & 2018.C. Calculate the following ratios for the five years 2014 - 2018 (2013 financial information willassist you in calculating averages, where necessary). Most ratios are available in the textbook -and a reference is given for those that are not in the text.1. Return on total assets (available in your study guide)2. Rate of return on ordinary equity3. Operating profit margin4. Gross profit Margin5. Inventories turnover period6. Settlement period for debtors7. Current ratio8. Quick ratio (acid test ratio)9. Debt to assets ratio (available in your study guide)10. Interest cover ratio (Times interest earned)11. Assets turnover (available in your study guide)12. Earnings per share13. Price-earnings ratio (refer to Blackboard for stock price history for five years).14. Dividend yield (refer to Blackboard for the dividend history for five years).In each of the ratios, you should firstly write out the ratio formula that you used and then show thenumbers that you used to calculate your answer, before showing your answer. Your answer should bein a format that indicates whether it is in %, times, ratio or days and to two decimal places.(3.5 marks)D. Given the ratios over five years, comment on the company’s profitability, efficiency, liquidity,financial gearing and investment ratios. Approximately 1,000 words.Note: You should also refer to coverage in the financial press that is related to your company. Thiswill help you in evaluation of the company - please cite your sources! (8 marks)E. Examine the Statements of Cash Flows of your company for the years 2017 and 2018. Discussthe changes in each of the cashflows from operating, investing and financing activities. From thisreport, what can you glean about the business' activities in each year? (Approximately 300 words)(5 marks)F. Using the answers you calculated in part C, enter your answers into the area provided inBlackboard in assessments before uploading your assignment in the assessments section. Thisportion of your assignment will be automatically graded, so it is very important that you followthe instructions outlined here and in Blackboard.

Aarti J · Accepted Answer

Financial Analysis – Woolworths
Course Name
Course Date
Student’s Name
FINANCIAL ANALYSIS – WOOLWORTHS	10
Financial Analysis – Woolworths
Introduction
Woolworths is a retail outlet which sell food, grocery items, home improvements and general merchandise to the target market. The company has multiple retail formats and banners which the company deals with. In this report we will be analysing the financial performance of Woolworths from different perspective. This includes the analysis of the financial ratios from different perspectives as well as the analysis of the cash flow statement of the company.
Part C
	Ratio
	Formula
	2014
	2015
	2016
	2017
	2018
	Return on Total Assets
	Net income / Average assets
	2458.4/((24205.2+22250.2)/2)
	2137.4/((25336.8+24205.2)/2)
	2347.9/((23502.2+25336.8)/2)
	1593/((23043+23502.2)/2)
	1795/((23558+23043)/2)
	Return on Total Assets
	
	10.58%
	8.63%
	-9.61%
	6.84%
	7.70%
	
	
	
	
	
	
	
	Return on Equity
	Net income / Average equity
	2458.4/((10525.4+9300.5)/2
	2137.4/((11132+10525.4)/2
	2347.9/((8781.9+11132)/2)
	1593/((9876+8781.9)/2)
	1795/((10849+9876)/2)
	Return on Equity
	
	24.80%
	19.74%
	-23.58%
	17.08%
	17.32%
	
	
	
	
	
	
	
	Operating profit margin
	Operating income /Total revenue
	3775.2/60952.2
	3549.9 / 59001.3
	1605.2/58275.5
	2326/55034
	2548/56965
	
	
	6.19%
	6.02%
	2.75%
	4.23%
	4.47%
	
	
	
	
	
	
	
	Gross Profit margin
	Gross Profit / Total revenue
	16477.6 / 60952.2
	16050.4/59001.3
	15598.8/58275.5
	15929/55034
	16709/56965
	
	
	27.03%
	27.20%
	26.77%
	28.94%
	29.33%
	
	
	
	
	
	
	
	Ratio
	Formula
	2014
	2015
	2016
	2017
	2018
	Inventory turnover ratio
	Average inventory/Cost of goods sold)*365
	(((4693.2+4205.4)/2)/44474.6)*365
	(((4872.2+4693.2)/2)/42950.9)*365
	(((4558.5+4872.2)/2)/42676.6)*365
	(((4207+4558.5)/2)/39105)*365
	(((4233+4207)/2)/40256)*365
	
	
	36.52
	40.64
	40.33
	40.91
	38.26
	
	
	
	
	
	
	
	Settlement period for debtors
	(average accounts receivables / Sales)*365
	(((968.6+925.7)/2)/60952.2)*365
	(((885.2+925.7)/2)/59001.2)*365
	(((885.2+763.9)/2)/58275.5)*365
	(((745+763.9)/2)/55034)*365
	(((745+801)/2)/56965)*365
	
	
	5.67
	5.60
	5.16
	5.00
	4.95
	
	
	
	
	
	
	
	Asset turnover
	Sales / Total assets
	60952.2/24205.2
	59001.3/25336.8
	58275.5/23502.2
	55034/23043
	56965/23558
	
	
	2.52
	2.33
	2.48
	2.39
	2.42
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	Ratio
	Formula
	2014
	2015
	2016
	2017
	2018
	Current ratio
	Current Assets / Current liabilities
	7174.8/7558.2
	7660.9/9168.6
	7427/8992.7
	7121/8952
	7181/9196
	
	
	0.95
	0.84
	0.83
	0.80
	0.78
	
	
	
	
	
	
	
	Quick ratio
	(Current assets - inventories) / Current liabiliities
	(7174.8-4693.2)/7558.2
	(7660.9-4872.2)/9168.6
	(7427-4558.5)/8992.7
	(7121-4207)/8952
	(7181-4233)/9196
	
	
	0.33
	0.30
	0.32
	0.33
	0.32
	
	
	
	
	
	
	
	Ratio
	Formula
	2014
	2015
	2016
	2017
	2018
	Debt to asset ratio
	Total debt / Total assets
	(13679.8/24205.2)
	(14204.8/25336.8)
	(14720.3/23502.2)
	(13167/23043)
	(12709/23558)
	
	
	56.52%
	56.06%
	62.63%
	57.14%
	53.95%
	
	
	
	
	
	
	
	Interest Coverage
	EBIT / Interest expense
	3775.2/277.8
	3549.9/253.3
	1605.2/245.6
	2326/194
	2548/154
	
	
	13.59
	14.01
	6.54
	11.99
	16.55
	
	
	
	
	
	
	
	Ratio
	Formula
	2014
	2015
	2016
	2017
	2018
	EPS
	Net income / Weighted average shares
	2458.4/1248
	2137.4/1256
	2347.9/1263.5
	1593/1283.9
	1795/1300.5
	
	
	1.97
	1.70
	-1.86
	1.24
	1.38
	
	
	
	
	
	
	
	Price earning ratio
	Price / EPS
	35.22/1.97
	26.96/1.70
	20.89/-1.86
	25.54/1.24
	30.52/1.38
	
	
	17.88
	15.86
	-11.23
	20.60
	22.12
	
	
	
	
	
	
	
	Dividend yield
	Dividend / Price
	1.37/35.22
	1.39/26.96
	0.77/20.89
	0.84/25.54
	0.93/30.52
	
	
	3.89%
	5.16%
	3.69%
	3.29%
	3.05%
Ratio Analysis
The financial statements of the company is analysed from different perspectives which includes the analysis of the profitability,

ASSIGNMENT 1 (20 MARKS)In gradebook you will see a section “Company number” with a number between 1 and 3. This is thenumber of the company that you are allocated for this assignment.1. JB Hi Fi Ltd...

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