Identify and conduct a trend analyse with the two groups of financial ratios, including...

Question

Identify and conduct a trend analyse with the two groups of financial ratios, including profitability and operating efficiency of the selected company1.Description of operation and comparative advantages of the selected company.
2.

Soumi · Accepted Answer

FINANCIAL ACCOUNTING – TREND ANALYSIS OF TWO RATIOS OF WOOLWORTHS
Table of Contents
Trend Analysis of Two Ratios of Woolworths	3
1) Efficiency Ratios	3
Asset Turnover Ratio	3
Inventory Turnover Ratio	3
2) Profitability Ratios	4
Net Profit Margin	4
Return on Assets	4
Conclusion	5
Trend Analysis of Two Ratios of Woolworths
Woolworths Supermarkets are the largest retail chain in Australian market with approximately 80% of market penetration, specialising in selling of groceries though there are various products like magazines, DVDs, health & beauty products etc. in Woolworths Supermarkets. Impact of Woolworths as the largest retail chain was very high as ban of single use plastic bags by the company led to 80 % reduction in use of plastic bags in Australia along with Coles Supermarkets.
1) Efficiency Ratios
Asset Turnover Ratio
This ratio is the indicator for understanding the ratio of Sales generated by utilising the Total Assets of the organisation. Woolworths’ Asset Turnover Ratio is twice as much as of the Total Assets, that is, the company managed to boost its Sales twice the value of the Total Assets,

Identify and conduct a trend analyse with the two groups of financial ratios, including profitability and operating efficiency of the selected company1.Description of operation and comparative...

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