Woolworts LTD WORD - ADM assignment PDF

Preview

Summary

ADM assignment ...

Description

WOOLWORTHS LTD

Date 17/3/201 7 20/3/201 7 21/3/201 7 22/3/201 7 23/3/201 7 24/3/201 7 27/3/201 7 28/3/201 7 29/3/201 7 30/3/201 7 31/3/201 7 3/4/2017 4/4/2017 5/4/2017 6/4/2017 7/4/2017 10/4/201 7 11/4/201 7 12/4/201 7 13/4/201 7 18/4/201 7 19/4/201 7 20/4/201 7 21/4/201 7

Closing share price 25.87 25.84 25.82 25.43 25.61 25.94 25.94 26.25 26.35 26.7 26.5 26.67 26.73 26.77 26.57 26.52 26.58 26.4 26.58 26.47 26.36 26.18 26.28 26.51

Closing Share Price of Woolworths Ltd 27 26.8 26.6 26.4 26.2 26 25.8

Date 17/3/201 7 20/3/201 7 21/3/201 7 22/3/201 7 23/3/201 7 24/3/201 7 27/3/201 7 28/3/201 7 29/3/201 7 30/3/201 7 31/3/201 7 3/4/2017 4/4/2017 5/4/2017 6/4/2017 7/4/2017 10/4/201 7 11/4/201 7

Closing Values (points) 5840.8 5820.5 5819.5 5732 5754 5796.1 5789.2 5860.4 5910.7 5931.8 5903.8 5909.7 5895.8 5915.9 5897.3 5902.6 5948.9 5964.6

12/4/201 7 13/4/201 7 18/4/201 7 19/4/201 7 20/4/201 7 21/4/201 7

5968.9 5925.9 5868.7 5839.9 5854.4 5885.6

Closing Values (points) 6000 5950 5900 5850 5800 5750 5700 5650 5600 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 17 20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 /20 / 17 20 21 22 23 24 27 28 29 30 31 4/3 4/4 4/5 4/6 4/7 /10 /11 /12 /13 /18 /19 /20 /21 4 4 4 4 4 4 4 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 4

Product and Services

Woolworths Ltd Woolworths Ltd is Australia’s largest supermarket chain. The company’s products and services includes supermarkets/grocery shops and petrol, liquor, home improvement, financial services, hotels and Ezibuy operation which includes different channels of retailing, for eg, online, call centers, etc. Brad Banducci

Name of Chief Executive Officer (CEO) Salary of Chief Executive Officer Profit/Loss After Tax from 2016 Annual Report Latest Dividend Paid Size of The Business By Total Assets Number of Employees

$1,6505.6 mil 33 cents per share, latest date paid (26 June 2016) $23,502.2 mil Approximately 205,000

Share Price

High - $26.530 Low - $26.080

Part B) Ratio Analysis

Profitability

Return on Total Assets EBIT/Total Assets

$1605.2/$23502.2 x 100 =

Profit Margin EBIT/Sales

$1605.2/58275.5 x 100 = 2.75%

Return on Equity

$-2347.9/$8781.9 x 100 = -26.74%

NPAT/Equity Stability Debt Ratio

14720.3/23502.2 x 100 = 62.63%

Total Liabilities/Total Assets Equity Ratio

8781.9/23502.2 x 100 = 37.37%

Total Equity/Total Assets Interest Coverage

1605.2/245.6 = 6.54

EBIT/Interest Expense

Liquidity Ratio

Current Ratio

7427/8992.7 = 0.83

Current Assets/Current Liabilities Quick Asset Ratio Current Assets – Inventory/Current Liabilities Part 2 C) Overview of the share price

7427 – 4558.5/8992.7 = 7426.49

Daily Share Price Movement of Woolworths Ltd & All Ordinaries Index 6000

27

5950 5900 5850

26.5

26

5800 5750 5700

25.5

25

5650 5600

24.5

17 17 17 /17 /17 /17 /17 /17 /17 /17 /17 /17 /17 /17 /17 /17 /17 /17 /17 /17 /17 /17 /17 /17 3 24 price 7/ 20/ 21/Closing /6 /7 Values /3 /4 /5 Closing 22 2share 29 30 31 Ltd 28 Woolworths 1 18 19 20 Index 21 10 11(points) 27 ($) 12 13All Ordinaries 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 3/ 4 4 4 4 4 4/ 4/ 4/ 4/ 4/ 4/ 4/ 4/

Over my tracking period, there were ups and downs in share price of Woolworths Ltd like there would be in any other stock market. From the 17th to 21st of March, the maximum amount of decline in Woolworth’s share price was $0.05 ($25.87-$25.82). At the same time, there was a certain drop of 21.3 (5840.8-5819.5) points in All Ordinaries Index. From 21 st to 22nd, just for one day, there was a major drop in the whole stock market because investors dreaded that Donald Trump would scuffle to deliver his promise of cutting tax. It is considered to be the worst day in the ASX and the Wallstreet and all the stock markets in the world in past 5/6 months(since the US election). After a major drop, both share price of Woolworth Ltd and All Ordinaries Index increased steadily from 22 nd to 24 th March. Moreover, All Ordinaries Index points and Woolworths share price rose significantly from 27 th to 30th of March, All Ordinaries Index went up from 5789.2 points to 5931.8 points and Woolworth’s share price went up $25.94 to $26.7. All Ordinaries Index points and Woolworth’s the closing share price fell for a day and rose back up, where Woolworths hit its highest point on the 5 th of April, with the value of $26.77 per share. After hitting its peak point on the 5 th April, it decrease to $26.4 per share on the 11th of April. While Woolworth’s share price kept decreasing, All Ordinaries Index points started increasing from the 6 th to 12th of April where it reached its peak point of 5968.9 points. From 12th to 19th April, the points and the share prices dropped until 19 th of April and it kept increasing steadily again until the end of my tracking period which was the 21 st of April.

Part 2

E) Personally, I would recommend to invest in Woolworths Ltd. It is because after the major drop the whole stock market faced on 22 nd March, Woolworth Ltd’s share price rose remarkably and even the drops it faced later, it maintained its share price really well. They are in a very competitive position, they have more than one earning channel, the change in management and the brand credential is there.

Reference:

http://www.news.com.au/finance/markets/australian-markets/trump-wipes-22-billion-fromaustralian-share-market/news-story/df3c68c646d840d9f23c059b8d9b4cf4 http://www.thebull.com.au/premium/a/22108-wow---5-reasons-to-invest-in-woolworth's-rightnow.html...