BUACC5930 Accounting and Finance Assignment Sample
All questions must be completed.
Woolworths Group Limited, a major Australian company, has extensive retail interests throughout Australia and New Zealand. It is the largest company in Australia by revenue and the second-largest in New Zealand.
The most recent financial report for the Company are found at the following site:
Here you will find the latest annual report (to 30 June 2021) and quarter and half yearly reports.
a. Using the 2021 annual report only, compare the financial results for assignment help of the Company between 2020 and 2021. You should use any financial information provided in the 2021 report (including ratios, and narratives) to conclude on the improvements or not in financial position and profitability. Your discussion should focus on reasons for this, and should include any impact due to the COVID- 19 pandemic.
b. Using the other financial information provided (quarter and half yearly reports for FY2022), comment on any financial changes between the annual report (ended 30 June 2021) and the FY2022 reports.
c. What other information would you need to assess the financial performance and financial position of Woolworths Group Limited?
The 2021 Sustainability Report for the Woolworths Group Limited is available at
This report outlines Woolworths approach to People, Planet and the Product.
Summarise the goals of the Woolworths Group Limited in relation to People, Planet and the Product.
What is your opinion of the measures that Woolworths has to achieve these goals?
Question 3: Cash Flows Question
Melbourne Ltd Income Statement for the year ended 30 June 2021
Financial performance analysis of Woolworths
Woolworth Group limited has been incorporated in 1924. It has its headquarter in Bella Vista Australia. It is operating in the grocery stores industry and belong to consumer defense sector. It operates as a retail store through Australia food, new Zealand food, and BIG W.
From the above, it can be observed that the Net profit of the business has been higher by 43% in 2021 which has increased the NP ratio in the current year. Gross profit has been lower by 13% while sales have also been reduced in the same context which lead to maintaining the GP ratio same in the current year. Operating profit has also been higher by 105% which has increased the ROCE of the company. Such Operating profit has also been the reason for such higher trend in the ROC ratio. Overall profitability performance of the entity has been higher and improved in the current year (Ginting, 2021).
From the above Current assets ratio of entity has been higher due to the increasing trend in the current assets by 48% while CL has just improved by 42%. QA have higher by 42%. The liquidity position of the company is strong (Rao, 2021).
Gearing ratio help to understand the capital risk and capital utilization by the company. In the above case, the company has a higher debt capital risk for the company due to a higher trend in the debt capital by 30% in the current year. It also increases the financial cost for the business. It is the reason for the higher debt-equity ratio for the business. Debt to assets has also been higher because assets have just increased by 2% while debt capital is higher by 30%. It shows that the entity has not used the debt capital for the investment of the assets in an optimum way (Nugroho, & Halik, 2021).
COVID -19 Impact on the company
Due to COVID -19 company has faced a reduction in the sale because the government has imposed the lockdown policy. It has to lead to an increase in the reduction in the net profit in 2020. Consumers were not allowed to visit the stores and due to this company was facing a reduction in sales. The cost of the business operation has been increasing as employees were not working efficiently. To improve from such a situation company has decided to provide the home delivery of the product and generate the sales through the online portal. It has given a hike in the sales of the company. The company also allows the work from home to the employees so that efficiency can be increased and the cost of operation can be reduced for the business. The liquidity position has also been compromised due to COVID but the company has managed it in 2021 (Fridson, & Alvarez, 2022).
Therefore after observation of ratio compliance it can be seen that Woolworth company has done well as compared to the previous year and successfully generated the higher profitability in the current year. It has generated value for its shareholders.
Comparing the financial data for 2022 with 2021
Woolworths Group Limited's financial performance and changes in the past years as compared to the current half-yearly statements are assessed and discussed. The company has generated revenue in the half-year 2022 of 31,894,000 US dollars and in 2021 full year the company was able to generate total revenue of 55,694,000 US dollars which means that the company has been performing better than in the past year. Expenses of the company have also been less in this quarter as compared to the year 2021 (Pizzi,& Venturelli, 2022). This means that the company can generate more sales and revenue by reducing its overheads. Earnings per share of the company have increased a lot from the previous year of the company for this quarter. It has jumped from 1.65 to 6.31 and this means that the shareholders of the company are generating returns on their investments.
The net profit ratio of the company in 2021 was 3.72% which has increased to almost 12% in the half-year ended 2022. This shows that the company is performing very well and is increasing its revenues and ultimately the ratios. However gross profit of the company has decreased this year from the year 2021 of 29.32%. The company needs to focus on improving its gross profit and generating higher margins. The current assets of the company have also improved and the company has a good liquidity position this year which shows that the company is easily able to pay off its short-term debts. However, the company has improved its sales and has shown good performance in terms of the profits in the half-year ended. This means that the company is regularly taking measures to improve its performance and implement it effectively and efficiently.
Other factors to assess financial performance
To assess the financial performance of a company only evaluating the balance sheet and related financial information would not give a complete analysis of the company's financial performance. Many non-financial factors affect the business of the company and these are also necessary to be looked at for assessing the complete financial performance of the company. These non-financial metrics are qualitative and it is difficult to express them in financial terms (ABDELRAHEEM, & HUSSIEN,2022).
Woolworths Limited should carry out a PESTEL analysis that will look at the macroeconomic factors of the company. It consists of assessing different factors naming Political, Economic, Social, Technological, Environmental, and Legal matters. This analysis will give insight into some non-financial factors that affect the company. Another method that the company can opt for is the SWOT analysis. In this analysis, the company focuses on analyzing its Strengths, Weaknesses, Opportunities, and Threats. These are all non-financial factors that the company has to assess for monitoring its performance. This helps the company in taking advantage of the available opportunities by focusing on its strengths and assessing its weaknesses by minimizing the threats that can occur. Both of these analyses are a great way of assessing the performance of the company other than using the company's financial information. This gives a different perspective to the business by looking at other non-financial segments.
The company can also consider applying the balanced scorecard for the business. This model takes into consideration both financial and non-financial indicators of the business. It considers the company's financial perspective, Learning perspective, Customer Perspective, and Internal business perspective. It also helps in gathering the data for the company's business related to the qualitative information by assessing customer and learning and innovation perspective.
Hence all these methods will provide some information for Woolworths Limited to assess the company's financial performance and financial position.
How is Woolworths Group Limited achieving its aims in the Sustainability Report?
Woolworths is the largest business organization in Australia with many operations throughout Australia and New Zealand. It is one of the second largest businesses in New Zealand with the highest income (Adams, 2019). This business organization brings new resources for sustainability. The main target of this business is people, the planet, and their prosperity or product to cover all the engagement related to the suppliers, clients, team members, and societies as well as a corporate social responsibility that directly impacts its operations. The main aim is to achieve a sustainability report of the Woolworths group limited business organization as well as deliver the best convenience, value, and quality to their customers. This firm maintains its employees with over 2 lakh team members who serve 29 billion clients across the entire world.
Woolworth’s group limited mainly focuses on sustainable clothing businesses across the entire supply chain, raw materials, and resources to make a new product and disposal of end goods or services. The sustainability framework is to focus on farming practices in the various supply chains through programs and the main aim is to reduce imports such as fertilizer, pesticides, water use, and biodiversity. It can also promote sustainability to reduce the amount of waste recycling, recyclable and materials where they can.
Woolworths business organization achieves its aim in this sustainability report through people because this business organization maintains its core values, and purpose in partnership with 10,000 team members to create a better experience for teams and customers. It is also helpful to promote gender equality only to create a culture and workplace which provides for all the team members. Some benefits, opportunities, and resources are should be identified or regularly reviewed in our systems (Nishant, Kennedy, and Corbett, 2020). This business organization is helpful for the people because the firm can provide parental leave, policies, superannuation payments, flexibility policy, family violence support policy, and impress their diversity. It can make better efforts to reflect their society, and maintain diversity as well as an inclusive workforce.
In this sustainability report, the planet is helpful for the team members and their customers because they can build a better tomorrow means protecting and repairing the future generation. It also impacts the negatively but also finding the other ways only to create a positive advantage. It is also helpful to maintain the climate changes continuously and indicate the global warming to 1.5 degrees. It is also helpful to maintain green electricity as per the sustainability report of 2025. Planet in the sustainability reports is helpful to carbon emissions by 2050 by recognizing and addressing the climate changes to our business (Raabe, Tasan, and Olivetti, 2019).
Product is helpful in the Woolworths group limited business organization to create a better tomorrow means evolving the way to impress the circular thinking. It involves many products to make it easier for the customers to choose particular goods, healthy, sustainably sourced, packaged, and so on. Healthier choices are very easier for the clients because they provide inspiration or alternatives across the online stores and offline stores to grow their healthy goods or services to the customers. To collaborate many recycled materials, sustainable sourcing, leading the future of protein, responsible service or consumption of alcohol, and gaming.
What type of measures that Woolworths have to achieve these goals?
Woolworths business organization accomplish these goals through increase the satisfaction of customers because the main aim is to provide the best range of goods or services, better quality, and value to its customer. It is also helpful in maximizing profits and gives the best shopping experience to its customers. Woolworth’s group limited maintains its strategies to accomplish the competitive advantage through excellent logistic systems and highly organized suppliers contract only to ensure the goods or services is delivered at a right time. Technology is very helpful for a business organization to manage its supply chain and stock. It is helpful to increase their brand loyalty because customers are the heart of the businesses and this business organization's main strength is the huge retail market in emerging economies.
Through people, products, and the planet, Woolworth’s business organization also accomplishes goals and objectives. In the case of people, they should encourage their diversity by targeting at least 40% of executive and senior managers. In the case of the planet, they maintain their healthy working environment toward zero food waste. In the case of prosperity, the only focus is to maintain the trusted relationship and identify how the firm engages the suppliers to measure independent supplier surveys.
Cash Flow statement of the Melbourne Ltd
Cash flow statement is the part of the financial position of the company that provide the all the information related to the cash inflow and outflow of the business during the current year. It classify the cash flow into three category such as operating activity, investment activity and financial activity of the business (Ali, & Hamad,2021).
Following are the CFS of the Melbourne Ltd