Financial reporting analysis

소개

영문자료 입니다.

목차

EXECUTIVE SUMMARY

1. INTRODUCTION AND PURPOSE OF ANALYSIS……………………4

2. COMPANY AND INDUSTRY BACKGROUND………………………5
COMPANY………………………………………………………………5
INDUSTRY………………………………………………………………5

3. ANALYSIS OF FINANCIAL REPORT DATA…………………………6
PROFITABILITY & EFFICIENCY OF OPERATIONS………………6
LIQUIDITY SHORT TERM………………………………………………9
LONG TERM SOLVENCY……………………………………………10
CASH FLOW ANALYSIS………………………………………………12

4. ASSESSMENT OF OTHER……………………………………………14

5. EVALUATION OF CAPITAL MARKET PERFORMANCE…………16

6. SUMMARY AND CONCLUSION……………………………………18

7. APPENDICES…………………………………………………………20

8. REFERENCES…………………………………………………………25

본문내용

EXECUTIVE SUMMARY

This report analyses Woolworths Limited’s current financial statement, helping the board of directors make business strategy decisions and helping potential investors deciding to invest in the firm. Ratios are used analyzing the financial statement and financial performance trends over the past five years. Woolworths’s financial position is investigated by cross sectional comparison with Coles Group Limited and the industry average.

After 2005, ROE significantly decreased to 23.8% from 36.0% due to paying a 70% premium for ordinary shares when acquiring the ALH, FAL, BMG and Taverner. However, increased sales and shorter inventory days outstanding contributed to high profit margins in 2006. Although, inventory day outstanding was getting shorter, the firm had a risk of short-term solvency because of high inventory assets. This is a typical characteristic of the food and staple retailing industry.

A cash flow analysis shows a decrease in the quality of income due to a dramatic increase of EBIT. In the past five years, Woolworths invested its capital expanding and improving performance while at the same time reducing inventory costs.

Internal and external factors affected the performance of Woolworths; macroeconomic variables had a positive effect on the firm. However, competition pressure has been high the past five years.

참고자료

· Aspect Huntley Fin Analysis, 2006, Woolworths Limited, last date retrieved 15
· May, 2007. (All financal data taken for Woolworths Limited from FinAnalysis database via Deakin Libarary)
· Aspect Huntley Fin Analysis, 2006, Food and Staples Retailing, last date retrieved 15 May, 2007. (All financal data taken for Food and Staples Retailing from FinAnalysis database via Deakin Libarary)
· ABS, 2007, Retail Trade, Retrieved May 6, 2007, <http://www.abs.gov.au/AUSSTATS/abs@.nsf/DetailsPage/8501.0Mar%202007?OpenDocument>
· Bazley, M., 2006, Contemporary accounting, 6edn, Thomson, Nelson Australia pty Limited
· Euromonitor, 2006, Retaling in Australia, retrieved May 10, 2007, <http://www.euromonitor.com/Retailing_in_Australia>.
· Foodbiz, nd, What’s in store for supermarkets, retrieved on May 13, 2007
· <http://www.nfis.com.au/foodbiz/v1i6_trends.asp>
· IBIS, 2007, Retail Trade in Australia, retrieved May 6, 2007 (taken from FinAnalysis database via Deakin Library)
· Korda Mentha, 2006, industry roundup, retrie