Slide 1Welcome to my presentation. I am _______.I am going to present Financial analysis of Woolworths Limited.

Slide 2First of all let me give a brief overview of Woolworths Limited. It is in retailing industry and opened first single basement store in Sydney’s Pitt Street in 1924. They began operating fresh food stores when advances in refrigeration technology revolutionised transport and storage.

Slide 3Their target is to open 150 stores within the next five years and already 49 stores are operational with more being constructed and/or planned.

Slide 4Its main business operations are these.

Slide 5Next come analysis of financial position of Woolworths ltd.

Slide 6To analyze the external environment we can use porters five forces model. Here

• Bargaining power of Buyers is extremely high • Bargaining power of Suppliers is high to moderate• Industry Substitutes is moderate to high• Threat of New Entrants is moderate• Rivalry among competitors is intense

Slide 7Next is SWOT analysis. Its financial position is Strong. And it’s the Market leader with market share 38.5%.Its global presence is Negligible compared to its competitors which is one of its weaknesses.

Slide 8It has a Growth opportunity in the health food sector and Rising raw material costs from both food and non-food will impact profit margins overall which can be a threat for it.

Slide 9Nest is financial ratio analysis, and we can start with balance sheet ratios. The position of current ratios is good enough.

Slide10The Quick ratio is slightly decreased in later years. Quick ratio is lower comparing current ratio. Debt-to - Worth ratio decreasing which shows Woolworths is earning enough money to pay its expenses and borrowing less money to cover its operating costs.

Slide 11Two types of Income statement ratios are calculated for Woolworths limited to measure the profitability of the firm relative to sales. Profitability of the firm increased over year.

Slide 12The fixed asset turnover measures how well the firm uses its fixed assets and the fixed asset turnover of the company is 6.4 in 2013 and it is increasing than the previous year. Total Asset turnover

measures the company’s efficiency at using its assets in generating sales or revenue; the higher the number the better. The estimation of total asset turnover is not very good but

Slide 13Return on assets relates net income to total assets; it measures how profitably the firm has used its assets.ROA increased year after year. But Return on investment decreased.

Slide 14Next is Funding Mix, Source of Fund of Woolworths Ltd.

Slide15The term Funding mix implies collecting fund for the organization by using both debt instruments and equity instruments

Slide 16Woolworths ltd uses both debt and equity financing. Source of equity financing are these.Slide 17These are source of borrowings or debt financing.

Slide 18

As a effect of using equity financing then it will have higher potential for long term returns .but if it uses more debt on the other hand it might fulfill the funding need but it will increase the chance of financial risk. Woolworths using equity and debt both there is no chance of financial risk. Woolworths ltd using higher amount of equity then debt in funding mix

Slide 19Woolworths Ltd an Australian-owned derives large portion of its income from retailing food & groceries, liquor, petrol, general merchandise and home improvement product. By analyzing its strengths and weaknesses, it can be said that Woolworths broadened its product offerings and expanded into new markets, e.g. New Zealand and India, it is expected that the benefits will only grow

Slide 20By Ratio analysis it can be said that their financial position is quite stable Large Portion of funding need is fulfilled through equity financing.

Thank you!