Essay on Wesfarmers Financial Analysis

Words: 1976
Pages: 8

UNIT 101 – FINANCIAL MANAGEMENT

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Financial Analysis of Wesfarmers Limited 2011 Annual Report

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EXECUTIVE SUMMARY
This report provides the financial analysis and evaluation of Wesfarmers Limited’s 2010 and 2011 fiscal year. The analysis of Wesfarmers performance is based on the 2011 Annual Report. To determine the financial standing of the company at the end of the year, data obtained from their Income Statement, Balance Sheet and Cash Flow Statement, the financial analysis ratios: Liquidity ratios, efficiency ratios, profitability ratios, financing ratios, and market-based investments and other ratios, are all
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However with a current ratio of 1.17, they are in a financially stable position to pay off their current liabilities
There is a marginal increase in its inventories from 2010 to the 2011 financial year. These inventories are excluded when calculating quick ratio and as such the quick ratio is less than the current ratio. It decreases from 0.64 to 0.60, and therefore, Wesfarmers need to sell more to