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i need somebody to paraphrase the following words they 700 please bid with your price;Executive Summary;Wesfarmers Limited and Woolworth Limited...




i need somebody to paraphrase the following words they 700 please bid with your price;Executive Summary;Wesfarmers Limited and Woolworth Limited are leading companies in the retail industry, which are listed on the Australian Stock Market. As Rahman&Dalabeeh (2013) points out, the analysis is essential to evaluate the financial performance of an enterprise given that it can provide appropriate and accurate information for decision-maker.?do not paraphrase?;This report takes a keen look on the above mentioned companies interms of;The report aims to evaluate these two companies? financial performance in order to assist investors to determinewhether to invest all his life-time savings or not. In fact, the analytical methods applied in this research include horizontal analysis on the Income Statement and Cash Flow Statement, Vertical Analysis on the Income Statement and Balance Sheet, and a range of Ratio Analysis, which is based on the two companies? annual reports from 2011 to 2013.;In the following pages, the paper will firstly introduce the relevant background regardingthe companies and the retail industry. After that, horizontal, vertical and ratiosanalysis of the pros and cons of investing in the companywill be conducted so as to help investors for decision-making. In particular, detailed evaluationsinclude relevant data with regard to companies? financial performance will also elaborated. In addition, it discusses the company?s generalprospectin the foreseeable future.At last, an overall conclusion and relevant recommendations for the companies? sustainable development.?paraphrase according to the same format?;? do not change the subtitle and format, just paraphrase?;1. Horizontal analysis of Wesfarmerslimited regarding the Income Statement and Cash Flow Statement;Horizontal Analysis for financial performance looks at changes across the financial statements in dollar and percent! This is important because it will show how a company actually is doing compared to what it looks like it is doing. In this case, the paper will compare reported numbers in different reporting periods to highlight magnitude and significance of changes.;1) Income Statement;In this case, it focuses on the dollar changes and percentage changes of accounting numbers regardingRevenue,Raw materials andinventory, Income Tax Expense, and Earnings per Share, which are based on income statements of Wesfarmers in the latest three annual reports.?do not change the red part and analyse according to the same order: table 1-4?;First of all, according to the Table 1, both dollar change and percentage change of revenue went down dramatically during the 3-year period (from $ 3205 m to $ 1752 m, from 5.84% to 3.01%), which is similar to the downward trend of numbers of raw materials & inventory with respect to horizontal analysis. In the meantime income tax expense falls down even remarkably throughout the period. In that case, although either revenue or expenses both decease significantly, the performances from earnings per share indicate that the overall financial position tend to be much less confident, which is revealed by dollar change (from 17.5 to 11.7) and percentage change (from 10.5 to 6.35) of EPS.;2) Cash Flow Statement??;Likewise, the selected cash flow statements also reflecthorizontal differences of accounting numbers concerningReceipts from customers, Net cash flows used in investing activities, Proceeds from borrowings, and Cash &cash equivalents at end of year. As showin the Table 2, dollar change and percentage change of receipts from customers decrease from 4212 million to 2326 million and from 7.21% to 3.71% respectively, which indicates the net cash flow for operating has a downward trend although the balance ($3,934)in 2013 remains relatively positive. On the other hand, there is a great need for proceeds from borrowing throughout the period, the figure regarding dollar change and percentage change both show a significant upward trend.;In this regard, based on such financial performance of cash flow categories, horizontal analysis regarding cash & cash equivalents at the end of year indicates the increase rate of cash flow balance (from 25.64% to 18.28%) turn to be much slower.;2. Horizontal analysis ofWoolworths limited concerning the Income Statement and Cash Flow Statement;1) Income Statement;In fact, The Revenue, Gross profit margin %, significant items after tax, and Group net profit after tax are key performance indicators selected in the horizontal analysis.;According to the Table 3, the significant increase of dollar change of revenue results in an over 6 times improvement concerning percentage change of revenue throughout the three years.;Additionally, the percentage change of Gross Margin percent is very positive with a 2.05% increase from 2012 to 2103, rather than only 1.42% between 2011 and 2012. Meanwhile, another good thing is thatthe dollar change of Significant items after tax turn to be negative, which falls down from $ 383.7 m to - $ 287.4. As such, percentage change of Group net profit after tax has altered from negative trend (-15.09%) to a very positive figure, with 24.62% increase throughout the 2-year period. Hence, it is concluded the business?s financial performance is on the right track.;2) Cash Flow Statement;In this case,Movement in net investment in inventory, Cash flow from operations after investing activities, Net cash flow are also selected to be key performance indicators to estimate Woolworths? financial performance throughout the year.;Firstly, as shown in the Table 4, due to the significant decrease of percentage change concerningmovement in net investment in inventory(from 272.33% to 73.6%),it is obvious that the company turn to allocate less cash flow under the operation, as the time passed. Along with such a signal, improvement of dollar change (from $-20.2 m to $724.7 m) shows the company had very positive numbers regarding cash flow from operations after investing activities, which is beneficial to business development for the coming year.;As a result, despite of the fact that other cash flow outflow such as dividend paid had to be added up, the net cash flow enjoyed a remarkable increase which is reflected in a positive percentage change (100.5%) between 2012 and 2013, compared with a negative figure (- 183.65%) from 2011 to 2011. In this regard, the financial performance turn to be very positive.;Appendices (calculations showing formulas used and the companies? financial data);Formulas;Dollar change = Accounting number in current reporting period ? Accounting number in previous reporting period;Percentage change = (Accounting number in current reporting period ? Accounting number in previous reporting period)/Accounting number previous reporting period;Table 1: Horizontal analysis regarding Income Statements of Wesfarmers limited;Absolute figures ($ m);Dollar change (2012-2013);Percentage change;(2012-2013);Dollar change (2011-2012);Percentage change;(2011-2012);Revenue;59832-58080;= 1752;(59832-58080)/58080;= 3.01%;58080-54875;= 3205;(58080-54875)/ 54875= 5.84%;Raw materials and inventory;39,617-38,406;= 1211;(39,617-38,406)/ 38,406= 3.15%;38,406-36,515;= 1891;(38,406-36,5150)/36,515;= 5.18%;Income Tax Expense;965-918;= 47;(965-918)/918;= 5.12%;918-784;= 134;(918-784)/784;= 17.09%;Earnings Per Share;195.9-184.2;= 11.7;(195.9-184.2)/;184.2;= 6.35%;184.2-166.7;= 17.5;(184.2-166.7)/166.7;= 10.5%;Table 2: Horizontal analysis regarding Cash flow Statements of Wesfarmers limited;Absolute figures ($ m);Dollar change (2012-2013);Percentage change (2012-2013);Dollar change (2011-2012);Percentage change (2011-2012);Receipts from customers;64,946-62620;= 2326;(64,946-62620)/62620;= 3.71%;62620-58408;= 4212;(62620-58408)/ 58408;= 7.21%;Net cash flows used in investing activities;1,760-2,169;= - 409;(1,760-2,169);/2169;= -18.86%;2169-1876;= 293;(2169-1876);/1876= 15.62%;Proceeds from borrowings;2056-1443;= 613;(2056-1443);/1443= 42.48%;1443-3291;= - 1848;(1443-3291);/3291;= - 56.15%;Cash and cash equivalents at end of year;1,333-1127;= 206;(1,333-1127)/1127;= 18.28%;1127-897;= 230;(1127-897)/897;= 25.64%;Table 3: Horizontal analysis regarding Income Statements of Woolworths limited;Absolute figures ($ m);Dollar change (2012-2013);Percentage change (2012-2013);Dollar change (2011-2012);Percentage change (2011-2012);Revenue;58,516.4-54,777.1;= 3739.3;(58,516.4-54,777.1)/54777.1;= 6.82%;54777.1-54,142.9;= 634.2;(54777.1-54,142.9)/ 54,142.9;= 1.17%;Gross profit margin %;26.94-26.40;= 0.54;(26.94-26.40)/ 26.40= 2.05%;26.40-26.03;= 0.37;(26.40-26.03)/;26.03=1.42%;Significant items after tax;96.3-383.7;= - 287.4;(96.3-383.7)/383.7;=- 74.9%;383.7-0;= 383.7;0;Group net profit after tax;2264.6-1,817.2;= 447.4;(2264.6-1,817.2);/1,817.2;= 24.62%;1,817.2-2,140.3;= - 323.1;(1,817.2-2,140.3)/ 2,140.3;= - 15.09%;Table 4: Horizontal analysis regarding Cash flow Statements of Woolworths limited;Absolute figures ($ m);Dollar change (2012-2013);Percentage change (2012-2013);Dollar change (2011-2012);Percentage change (2011-2012);Movement in net investment in inventory;490.6-282.6;= 208;(490.6-282.6)/282.6;= 73.6%;282.6-75.9;= 206.7;(282.6-75.9)/75.9;= 272.33%;Cash flow from operations after investing activities;1518.2-793.5=;724.7;(1518.2-793.5) /793.5;= 91.32%;793.5-813.7;=- 20.2;(793.5-813.7);/813.7;= - 2.48%;Net cash flow;4.0-(-674.4);= 678.4;[4.0-(-674.4)];/(-674.4);= 100.5%;(-674.4)-806.2;= - 1480.6;[(-674.4)-806.2]/806.2;= - 183.65%;Bibliography;Rahman, Abdel &Dalabeeh. kh. El. (2013). The Role of Financial Analysis Ratio in Evaluating Performance (Case Study: National Chlorine industry). Accounting Department, Faculty of Finance and Business Administration, AL albayt University;Mafraq, Jordan;Wesfarmers limited. (2011). Wesfarmers Annual Report 2011;Wesfarmers limited. (2012). Wesfarmers Annual Report 2012;Wesfarmers limited. (2013). Wesfarmers Annual Report 2013;Woolworths Limited. (2011). Woolworths Annual Report 2011;Woolworths Limited. (2012). Woolworths Annual Report 2012;Woolworths Limited. (2013). Woolworths Annual Report 2013


Paper#80973 | Written in 18-Jul-2015

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