Essays on Woolworths Limited and Wesfarmers Limited Financial Analysis Assignment

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The paper "Woolworths Limited and Wesfarmers Limited Financial Analysis" is a great example of a finance and accounting assignment. Woolworths Limited and Wesfarmers Limited have been performing on a similar business model and have been successful as retail players. Their market has grown which is reflected by the growth in sales. There is even scope for the company to move further as this sector is showing improvement. The financial analysis also highlights some important fact related to liquidity and capital structure. The findings show the positives and negatives of both based on financial analysis.

The ratios like liquidity ensure to find liquidity and the capital financed by the company are demonstrated by capital structure ratios. The efficiency ratio indicates the area where Wesfarmers need to work to stay ahead of Woolworths Limited. The capital market ratio indicates the companies which are favoured by shareholders and also help to look into the future prospects of the company. The recommendations highlight areas where both the companies need to improve which will help them face competition and help in proper strategy execution. The analysis shows that Wesfarmers performance has improved drastically in 2009.

It still needs to work on certain areas to stay ahead of Woolworths as the company has shown stability and Wesfarmers need to inculcate those so that it is able to withstand competition and capture a bigger market. Introduction Wesfarmers Limited is a retail giant. The company has a huge presence and deals in “ home improvement, office supplies, insurance, food, liquor, coal and other products” . (Wesfarmers Website, 2010) The fact that the company deals in so many products and huge reach have given a wide market.

The company has a presence in supermarkets, malls, departmental stores and provide the basic necessities for people thereby enabling them to grow. Woolworths Limited is also a retail giant. The company deals in “ liquor, hotels, petrol, consumer electronic, everyday requirements and home improvements” . (Woolworths Website, 2010) The wide range of product and dispersion has made it a huge success. The company with its policy to satisfy customers has grown and is able to capture a good market.

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