Financial analysis report with ratio calculation of Wesfarmers.
As one of Australia’s oldest and most successful diversified companies, Wesfarmers began in June 1914 as the Westralian Farmers Co-operative and for most of its early history was primarily involved with the provision of services and merchandise to Western Australia’s rural community_
As one of Australia’s oldest and most successful diversified companies, Wesfarmers began in June 1914 as the Westralian Farmers Co-operative and for most of its early history was primarily involved with the provision of services and merchandise to Western Australia’s rural community
It’s early operations included wool and wheat merchandising, grain and fruit exporting, oil distribution to rural areas, as well as Western Australia’s first public radio station
In the 1950s Wesfarmers began a major diversification programme with the formation of . Kleenheat Gas. Kleenheat pioneered the distribution of liquefied petroleum gas (LPG) and gas appliances to Western Australia’s rural areas and now operates a major Australia-wide network of depots, company-operated branches, dealers and franchisees.
The 1980s saw significant changes to the company’s operations and structure.
Since the first major acquisition in the 80s. Wesfarmers has continued to transform the size and shape of its business operations through strategic acquisitions and divestments. Steeped in a foundation of retailing since its formation. today WE’ farmers is one of Australia’s leading retailers and diversified industrial companies. From the small farmers co-operative three-quarters of a century ago, to the nation’s largest employer with over 200,000 employees and approximately 500,000 shareholders, Wesfarmers remains committed to providing a satisfactory return to shareholders
The company aims to achieve this by:
- satisfying the needs of customers through the provision of goods and services on a competitive and professional basis;
- providing a safe and fulfilling working environment for employees, rewarding good performance and providing opportunities for advancement;
- contributing to the growth and prosperity of the countries in which it operates by conducting existing operations in an efficient manner and by seeking out opportunities for expansion;
- responding to the attitudes and expectations of the communities in which the company operates;
- placing a strong emphasis on protection of the environment: and
- acting with integrity and honesty in dealings both inside and outside the company.
Prepare a business report for your client Your report should include
1.A description of the core business of the Wesfarrners I united including full details of its operating activities,
2.A discussion on any significant issues emerging horn the Chairman’s Report.
3.A discussion on any significant issues emerging from the Director’s Report.
4.A discussion on company’s Corporate Governance Statement
5.Financial analysis of Wesfarmers Limited financial position and performance for the 2010, 2011, 2012, 2013 and 2014 Financial Years and these annual reports are provided on Moodie and further annual reports can be access through the following link- http://www.wesfarmers.com.aulinvestors/reports-resultspresentations.html#archive
6.A calculation of the key financial ratios for 2011-2014 financial
7.Explain briefly what is revealed by the ratios and other calculations in the context of the company’s profitability, asset efficiency, liquidity, capital structure, and market In particular, any important changes over the period 20 I I to 2014 should be identified, discussed and, where possible, explained.
8.An overall evaluation of Wesfarmers Limited and your recommendation on investing in the company.