5. Inventory Turnover: This ratio is rendered by taking the cost of goods sold, for a time period, divided by average inventory. This shows how many times a firms inventory is sold and replaced during the period of time that it is calculated for.
Asset Turnover | 2008 | 2009 | 2010 | Home Depot | 1.75 | 1.73 | 1.62 | Lowe’s | 1.56 | 1.48 | 1.43 | Asset turnover depicts investment efficiency, because it shows how many sales dollars are generated for every dollar invested in the company’s assets. Lowe’s had relatively lower asset turnover ratios than Home Depot because their recent investment in PP&E.
Financial Analysis The question asks us to compare and evaluate JB Hi-Fi’s calculated ratio report, with that of the retail industry ratio report (Potter, Libby, Libby, Short p. 1133). The retail ratio report is comprised of a basket of listed companies which operate under the retail banner, which makes it relevant
Accounts receivable turnover: Formula: Net sales/accounts receivable = 7,141.1/1,422.4 = 5.02 Interpretation: Receivables are collected 5.67 times in a year. Leverage Financial leverage is the ability of the company to maneuver with financing options to meet the obligations (Investopedia, 2012). There are two leverage ratios that were analyzed for this financial statement 1) debt ratio and 2) debt-to-equity ratio.
Cash ratio=(cash+ marketable securities)/current liabilities= 20.56/108.82 =0.19 Inventory turnover in days is an assistant figure of inventory turnover. The shorter of the days, the faster of the inventory turning to cash, and the better use of short-term capital. This figure of the firm was very high in 2001 and began to fell down from 2002,then lower than industry in 2004 and 2005.This indicates the management of the firm became better.
Woolworths Limited is an Australian company. It is the largest retail company in Australia and New Zealand by sales and largest food retailer in Australia. As of now it more than 180,000 employees that represents about 1.5 % of Australia’s population. Woolworths majorly focuses in retail and liquor sector but has it’s own petrol stations and it recently entered in home improvement sector. Woolworths first store was opened in 1924 and it was the first store in the world to use cash register to print receipts for customers.
Woolworths is passionate about retailing, and aims to serve its customers with great choice, lowest prices and excellent quality. Woolworths' major Australian competitor in this area of retailing is the Coles Group (Coles). Woolworths'retail portfolio stretches across food and grocery, liquor, petrol, consumer electronics and general merchandise. Woolworths has also taken the lead to invest in Australian and New Zealand communities. The three main areas of community investment are (Woolworths,2007):
a) In accordance to the annual report of Woolworths Limited 2016, the current accounting practice that is applied to the business regarding its inventory disclosure includes; a perpetual inventory system which continually updates the information by increasing or decreasing inventory from reports throughout the year to verify accounting records (Bragg 2016). A perpetual inventory system in comparison to a periodic inventory system is more efficient and effective for larger corporations. With entities like Woolworths, many transactions occur between themselves and other stakeholders, so by utilising a perpetual inventory system, it saves time and also money (Woolworths 2016)
1. Executive summary The primary purpose of this business research report is to estimate the relevant disclosure form the latest annual report 2016 regards to PPE and whether these disclosures satisfies the CF 's objective and qualitative characteristics. This report examines and assess on how the PPE
Business Introduction Woolworths is a supermarket chain situated within Australia and New Zealand and is owned by Woolworths Limited. Established in 1924, as a single basement store in Sydney Australia, Woolworths has become the largest food retailer within Australia,
It will examine the following subjects: * About Woolworths * Business Structure * Responsibilities to Stakeholders * Internal and External Influences * Strategies for Future Growth About Woolworths Woolworths is a conventional supermarket owned by Woolworths Limited. It started as a basement store in Pitt Street in 1924, and is now one of the leading competitors in the supermarket business. With over 850 stores in Australia, and 110,000 Woolworths staff, they provide
Financial Analysis of Woolworths Limited 10 October 2011 By: Huatong (Claire) Liu To: Potential investors Executive Summary The primary purpose of this report is to determine whether Woolworths Limited is an appropriate and profitable company to invest in. Specific objectives include analysis of annual reports of Woolworths and its competitors (Wesfarmers) as well as interpretation of relevant government and industry statistics, stock exchange, market information and media comments. Further, Woolworths’s financial strengths and weaknesses are identified. The potential growth prospects for Woolworths, the future of the food and staples retailing industry, and the risks versus the benefits of investing in Woolworths are all
ASSET TURNOVER RATIO: The total asset turnover ratio estimates the capability of a firm to utilize its assets to efficiently generate sales. All assets, i.e. both current and fixed are taken into consideration. In order to show how much sales generates from each rupee of firm’s assets, the net sales is calculated as a percentage of assets. A ratio of 0.5 means that each rupee of asset generates 50 paisa of
Inventory Turnover has declined from 4.04 times per year Return on Assets shows the Company’s ability to generate a profit based on assets and equity. In 2009, the Company’s profit margin was 3.07% and in 2011 it had fallen to 1.91%.
• Two different methods can determine the inventory turnover ratio. o Cost of goods sold—operating revenue of a hospital—divided by ending inventory o Total revenues plus net nonoperating gains divided by ending inventory This example uses the [pic] |Ratio |Numbers from Arcadia financial |Result |Is it a liquidity, |Define the ratio and explain what the result shown in Column 3 means to the organization. Do not forget to |