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1.Calculation and analysis of financial ratiosUsing financial data obtained from current financial statements of your selected company for the given 2 years to calculate the following ratios and...

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1.Calculation and analysis of financial ratiosUsing financial data obtained from current financial statements of your selected company for the given 2 years to calculate the following ratios and present them in relevant charts or tables. As yourclientis especially interested in the profitability and operating efficiency of the company, provide analysis on the company performance and justify your opinions using the data: -Profitability ratios -Operating efficiency ratios2. 3.Graphs and comparison of share price movementsUsing the information from the ASX website: www.asx.com.au to prepare one or more graph displaying movements in the monthly share prices over the last two years for the chosen company that you are investigating. Data of share price movement of the company should be plotted against All Ordinaries Index.Providing an analysis to compare the movements in the companies’ share prices to the All Ordinaries Index. For instance, whether your selected company price trend is more or less volatile compared to the index? How closely it is correlated with the All Ordinaries Index, above or below the index? Do a research to identify the factors that affected the share price movements of the company within 2 years.2.
Analyse monthly share prices movements of the selected company within 2 years, compare the movement with the All-Ord-Index
Answered Same Day May 02, 2021

Solution

Nakul answered on May 05 2021
162 Votes
Assignment Solution
Woolworths Group Limited (Ticker Symbol: WOW)
Company Profile
Woolworths group limited is one of the Australia’s largest retailer and supermarket chain and owns various discount departmental stores and hotels too. The company mainly operates in Australia and New Zealand. The company is headquartered in Bella Vista, Australia and was founded in the year September 1924. In 2018 the company recorded a revenue of AUD $ 56726 million, up by 1.9% over the last year. The stock price of the company oscillated between 30.17 and 32.84 over the past month.
Financial Analysis
Key financial ratios of Woolworths group limited for the past two years are shown in the charts below:
The gross profit ratio of the company was 28.61% in 2017 and 29.03% in 2018. The operating profit ratio was negative for both the years at -15.97% in 2017and -16.38% in 2018. This was mainly due to high SG&A expenses and other operating expenses. Despite a negative operating profit ratio for two consecutive years, the company was able to generate a positive net profit ratio in 2017 and 2018. The net profit ratio in 2017 was 2.76% which increased to 3.04% in 2018.
Return on Assets showed marginal growth over the two year period. ROA was 6.61% in 2017 and it went up to 7.42% in 2018. Similarly, return on equity showed marginal growth during the same period. ROE was 17.05% in 2017 and 17.23% in 2018. But return on assets and return...
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