Sangam Individual Assessment Woolworths PDF

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Part 2 COMPANY RESEARCH/ GRAPHS/ INVESTOR INFORMATION A. Description of each company  Products and services provided by the company supermarket which provide clothing, footwear, accessories, groceries, beauty products, homeware and financial services  Name and chief executive officer Branford Banducci  Salary of chief executive officer I between 9 million to 10 million  Profit and loss after tax profit after tax 1,753 million  Latest dividend paid (DPS and date paid) 103 cent  Size of the business by the total assets – from annual 2018 annual report 23,558 million dollars  Number of employees 201,522 million Australian Dollar

Share price – 52 weeks on Fri 16 Aug 2019 Date 22/07/201 9 23/07/201 9 24/07/201 9 25/07/201 9 26/07/201 9 29/07/201 9 30/07/201 9 31/07/201 9 01/08/201 9 02/08/201 9 05/08/201 9 06/08/201 9 07/08/201 9 08/08/201 9 09/08/201 9 12/08/201 9 13/08/201 9 14/08/201 9 15/08/201

closing price (AUD) 34.50 34.65 34.93 35.38 35.23 35.38 35.48 35.62 35.58 35.77 35.54 34.71 35.50 35.50 35.40 35.64 35.88 35.74 34.78

9 16/08/201 9

34.99

Own graph of the daily movement using excel. Date 22/07/201 9 23/07/201 9 24/07/201 9 25/07/201 9 26/07/201 9 29/07/201 9 30/07/201 9 31/07/201 9 01/08/201 9 02/08/201 9 05/08/201 9 06/08/201 9 07/08/201 9 08/08/201 9 09/08/201 9 12/08/201 9 13/08/201 9 14/08/201 9 15/08/201 9 16/08/201 9

closing price (AUD) 34.50 34.65 34.93 35.38 35.23 35.38 35.48 35.62 35.58 35.77 35.54 34.71 35.50 35.50 35.40 35.64 35.88 35.74 34.78 34.99

share price of wow 35.88 35.77 35.62 35.58 35.48 35.38

35.74 35.64 35.54

35.5 35.5 35.4

35.38 35.23

34.99

34.93 34.71

34.65

34.78

7/ 22 /1 7/ 9 23 /1 7/ 9 24 /1 7/ 9 25 / 7/ 19 26 / 7/ 19 29 / 7/ 19 30 / 7/ 19 31 /1 9 8/ 1/ 19 8/ 2/ 1 8/ 9 5/ 1 8/ 9 6/ 1 8/ 9 7/ 19 8/ 8/ 19 8/ 9/ 8/ 19 12 / 8/ 19 13 / 8/ 19 14 /1 8/ 9 15 /1 8/ 9 16 /1 9

34.5

Prepare your own graph of the daily movement of the all ordinaries index.

ASX All Ordinaries Index (xAORD) Daily prices from 22-Jul-2019 to 16-Aug-2019 Currency: USD Date

Close

16-Aug-19

6485.93

15-Aug-19

6490.77

14-Aug-19

6677.51

13-Aug-19

6648.09

12-Aug-19

6670.14

9-Aug-19

6663.43

8-Aug-19

6642.26

7-Aug-19

6588.53

6-Aug-19

6546.45

5-Aug-19

6710.61

2-Aug-19

6846.06

1-Aug-19

6871.94

31-Jul-19

6896.66

30-Jul-19

6928.33

29-Jul-19

6911.44

26-Jul-19

6879.35

25-Jul-19

6901.85

24-Jul-19

6862.38

23-Jul-19

6812.48

22-Jul-19

6781.24

all ordinaries index 7000.00

6928.33 6911.44 6901.85 6896.66 6879.35 6871.94 6862.3 6846.06

6900.00

6800.00

6710.61

6700.00 6677.51 6670.14 6663.43 6648.09 6642.26 6600.00

6588.53 6546.45

6500.00 6490.77 6485.93

6400.00

6300.00

16 -A u

g19 15 -A ug -1 9 14 -A ug -1 9 13 -A ug -1 9 12 -A ug -1 9 9Au g19 8Au g19 7Au g19 6Au g19 5Au g19 2Au g19 1Au g19 31 -Ju l-1 9 30 -Ju l-1 9 29 -Ju l-1 9 26 -Ju l-1 9 25 -Ju l-1 9 24 -Ju l-1 9 23 J

6200.00

Reference:

Overview of the share price performance, describe the overall trend of the Australian share market over the tracking period, describe how each of your shares performed against ordinaries index. answer: in the beginning of the tracking period (i.e. 22/1/19), the share price of Woolworths group limited was 34.5 and the end of the tracking period (i.e. 18/8/19), the share price was 34.99. in between the tracking period, we can see fluctuation. During tracking period, the highest share price was 35.88 and the lowest share price was 34.50.

Explain the major movements in share prices and the share market, Answer:

Evidence from news articles should be photocopied and neatly presented in an appendix to your report (note: reference them) B. Calculate gain or loss during the tracking period C. Recommendation as well as support the relevant information

Part 3: A. IDENTIFATION OF KEY FINANCIAL DATA  Revenue/sales 56726 million dollars  Interest expense 154 million dollars  EBIT 2,548 million dollars  Net profit before tax 2,394 million dollars  Net profit after tax 1,676 million dollars  Current assets 7,181 million dollars  Total assets 23, 558 million dollars  Current liabilities 9,196 million dollars  Total liabilities 12,709 million dollars  Total equity 10,849 million dollars

refences for all the information

Attach consolidated income statement and balance sheet for each company This must be included in the appendix of your report

B. RATIO ANALYSIS Liquidity ratio Current ratio =current assets ∕ current liabilities =7181 ∕ 9196 =0.78 × 100% =78.15%

Currents ratio compares the current assets to the current liabilities due. Coverage of 42 of current assets to cover $1 of current liabilities is a generally accepted benchmark, but depends on the individual business and industry. WOW has 78 cents of current assets available to cover each $1 of current liabilities.

Quick ratio=current assets −¿ inventory ∕ current liabilities =6,298 −¿ 4,280 ∕ 8,620 =2,018 ∕ 8,620 =0.23 × 100% =23.41% WOW have 23 cents of quick assets available to cover each $1 of current liabilities. Profitability ratios: return on total assets=EBIT ∕ Total assets =2,548 ∕ 23,558 =0.10 ×100 % =10.82% ≈ 11 % WOW has earned 11 cents return for each dollar invested in assets. Profit margin=EBIT ∕ sales =2,548 ∕ 56,726 =0.04×100 % =4.49 % ≈ 4 % WOW has earned 4% gross profit on sales which means that by 4% or do have a better control over the cost of its goods. Stability ratios:

WOW marks up its goods

Interest coverage=EBIT ∕ interest expense =2,548 ∕ 154 =16.55 WOW have 16.55$ of profit to cover each $1 of interest and the general benchmark is at a least 3 to 4 times cover. Equity ratio=total equity ∕ total assets =10849 ∕ 23558 =0.46 ×100 % =46.0z % ≈ 46 % WOW has used $0.46 of equity to finance each $1 of assets. The greater reliance on equity, the lesser the financial risk undertaken.

Equity ratio measures the proportion of assets which have been financed from funds contributed by the owners and retained profits. Here, 46% means that every $1 of assets has been financed by 46 cents of equity.

From key financial data, profitability stability liquidity Six ratios for each company should be used for this overview You should overview:  Identify the name of the ratio used and interpret your result.  Provide an explanation of why these ratios may differ between your companies  Which do you consider to be the better investment? Give reason. Refer subject resource workbook for formulae and interpretation. Note: topic 4- ratio analysis and interpretation will be covered in weeks 8 and week 9. All formula and calculations must be clearly shown....