The paper “ Main Business Activities and Total Current Assets for the Metcash Group” is a fitting example of a finance & accounting assignment. Metcash Limited is a company that operates in various industries and is primarily an in-store retailer. The following are the main business activities of Metcash Ltd: • IGA Distribution: Metcash Ltd is involved in the distribution of IGA branded and non-branded products. • IGA Fresh: Metcash also provides fresh food to end consumers through its various retail outlets including meat, vegetables, and fruits. • Australian Liquor Marketers: Metcash also supplies liquor at wholesale rates to various liquor stores and restaurants. • Campbells Wholesale: Metcash is also into the fast-moving consumer goods having retail outlets all over Australia where consumers can purchase FMCGs. • Mitre 10: Metcash sells hardware under this brand name.
It also involves home improvement solutions for the end consumers. Metcash Ltd operates in the areas of distribution, fresh food, liquor, fast-moving consumer goods, and hardware. 2:a) Sale of goods accounting for $11517.4 million was the main source of revenue for the Metcash group. b) Cost of sales was the largest expense for Metcash group.
It was $10435.3 million in the year 2010.c) The total comprehensive income for the Metcash group was $229.6 million in the year 2010.d) Return on assets= Net income /Total AssetsReturn on assets for 2009= 203.2/3286.5=6.18%Return on assets for 2010= 230.3/3639=6.33%e) Gross profit margin= Gross profit /RevenueThe gross profit margin for 2009=1116.6/11067.5=10.09%The gross profit margin for 2010= 1172.8/11608.1=10.10%f) There has been a very slight improvement in the profitability of Metcash Ltd. The return on assets increased from 6.18% in 2009 to 6.33% in 2010.
This can be attributed to the higher sales revenue that Metcash earned in the year 2010 compared to the revenue in the year 2009. Although Metcash purchased more assets to generate the higher revenue, the increase in revenue was more than the proportionate increase in total assets. The gross profit margin of Metcash remained relatively stable at 10.1%.