Wesfarmers Financial Analysis Essay - 1488 Words

Wesfarmers : Financial Analysis Wesfarmers main focus is very simple but an effective objective of providing a satisfactory return to its shareholders. The beauty of this objective is that it is measurable, and they seek to achieve a return on equity, which ranks Wesfarmers in the top 20 percent of Australia’s listed companies and able to manage the portfolio of businesses which make up the group with strong financial focus (Australian Securities Exchange,2008). The ongoing success of Wesfarmers is based on shareholder focus, financial disciplines and goodwill and hence it has achieved significant financial growth in the preceding 6 years. It is a â€Å" diversified Australian group, provides home improvement products, building†¦show more content†¦However given the global financial and economic crisis, Financial experts have predicted that Wesfarmers debt levels are going to rise in the short to medium term of 2009 (Greenhalgh, 2008). This shows the ability of Wesfarmers to purchase assets using borrowed funds and thus lever up their total assets. The short to medium term debt will have to be refinanced in the coming months to assist it reducing any further risks. Wesfarmers services a diverse customer base reflecting the broad range of industries in which the company operates, given this diverse operations of groups they have a large number of competitors including MITRE 10, BHP, RIO and Orica, Caltex etc ( FinAnalysis, 2009). However the major one of them all being Woolworths. Woolworths has established a clear lead in sales growth in recent years, and is estimated to hold approximately 27% of the market with Coles falling down to 23%. Woolworths has clearly demonstrated a lead in terms of supermarket margins and supply chain automation resulting in heavy price discounting, and they have reported a solid growth in margins from 4.7% in 2005 to 6.2% in 2007(Woolworths, 2008). As Wesfarmers operate in various other industries and segments they have demonstrated a strong position in the market. General merchandising and apparel store Target has performedShow MoreRelatedWesfarmers Financial Analysis1531 Words   |  7 Pagesï » ¿ FACULTY OF BUSINESS AND LAW MPA702- FINANCIAL INTERPRETATION Unit chair: Dr. Wen Qu Written assignment T2-2014 Analysis and interpretation of the performance of Wesfarmers Group No: 03 Prepared by: Zafer Han (700270889) Kaustav Pandey (214362404) Yujie Yin (212520114) Gavin Van Arkadie (214349824) Yuthi Srivastava (212358103) Words count: 1021 â€Å"We certify that the attached work is entirely our own, exceptRead MoreWesfarmers Financial Analysis1968 Words   |  8 PagesUNIT 101 – FINANCIAL MANAGEMENT LECTURER’S NAME TOPIC NAME: ------------------------------------------------- Financial Analysis of Wesfarmers Limited 2011 Annual Report SUBMISSION DATE: STUDENT NAME: STUDENT ID: EXECUTIVE SUMMARY This report provides the financial analysis and evaluation of Wesfarmers Limited’s 2010 and 2011 fiscal year. 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