Slide 1

Welcome to my presentation. I am _______.I am going to present Financial analysis of

Woolworths Limited.

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

Slide 3
Their 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 4
Its main business operations are these.

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

Slide 6
To 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 7
Next is SWOT analysis. Its financial position is Strong. And its the Market leader with market share
38.5%.
Its global presence is Negligible compared to its competitors which is one of its weaknesses.

Slide 8
It 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 9
Nest is financial ratio analysis, and we can start with balance sheet ratios. The position of current
ratios is good enough.

Slide10
The 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 11
Two 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 12
The 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 companys 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 13
Return 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 14
Next is Funding Mix, Source of Fund of Woolworths Ltd.

Slide15
The term Funding mix implies collecting fund for the organization by using both debt instruments and
equity instruments

Slide 16
Woolworths ltd uses both debt and equity financing. Source of equity financing are these.
Slide 17
These 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 19
Woolworths 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 20
By 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!