Wesfarmers Limited Financial Analysis Summary

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UNIT 101 – FINANCIAL MANAGEMENT Ms. AZRA FATIMA ________________________________________ FINANCIAL ANALYISIS OF WESFARMERS LIMITED ________________________________________ SUBMISSION DATE: 10th October, 2014 NAME OF STUDENT: ABRAHAM THOMAS K STUDIENT ID: NA EXECUTIVE SU MMARY This report analyses the performance of Wesfarmers Limited one of Australia’s largest companies and also one the oldest cooperatives in the company. The company has diverse divisions including supermarkets, office and hardware supply, department stores, mining, chemicals and fertilizers, insurance and industrial safety. Using the Wesfarmers Limited Annual report for the Financial Year 2011, we have calculated the key financial analysis ratios including the Liquidity Ratios. Efficiency Ratios, Profitability Ratios, Financing Ratios and Investment Ratios. By utilizing the data provided in the Balance sheet, Income statement, Cash Flow Statement and the Company Performance Overview the above ratios are calculated for both the years 2011 and 2010 and an evaluation is done on the performance of the company.…show more content…
The company’s share value also continues to grow and the company has issued higher dividend compared to 2010 to its shareholders. Wesfarmers have also taken steps to cut down their long term debt. However this has decreased their cash flow from operations. This coupled with an increase in overall liabilities, puts the companies liquidity and financing ratios at a marginal negative outlook. However this appears to be a short term problem and the continued sales and profit growth should help the company get back on track in the coming
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