Essays on Woolworths Supermarket Business Analysis Case Study

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The paper "Woolworths Supermarket Business Analysis" is a perfect example of a business case study. Woolworths Supermarket is an Australian company founded in Sydney in 1924. As a retailer company, Woolworths Supermarket strives to provide a convenient shopping experience as well as offer value and a range of quality products to customers. The company’ s primary activities are in the supermarket and retail outlets. Over the years, the company has expanded to offer food, petrol, liquor, home improvement, general merchandise, and consumer electronics among other products. Woolworths Supermarket owns some of the most recognized and trusted brands, including Liquor Group, Thomas Dux, and ALH Group among others.

It is a listed company on the Australian Securities Exchange under the code WOW. The company employs about 198,000 people in 3,000 locations in Australia (Woolsworth 2016). Woolworths Supermarket’ s headquarters are in Bella Vista, New South Wales. Since 2011, the company’ s revenues have been increasing consistently over the years. In 2011, the company total revenues totaled 54,280 million, while in the 2015 financial year, the company’ s revenues totaled to $60,868. Despite this, the company’ s net profits have not improved significantly.

Growth in profits has been painfully slow at 0.01%. Earnings per share for Woolworths Supermarket were increasing significantly until 2015 when the company recorded a sharp decline in earnings per share. This decline resulted from a reduction in the share price of Woolworths Supermarket. An economic outlook for Woolworths Supermarket suggests that since the global financial crisis in 2009, the impacts of the crisis rocked the retail industry causing a reduction in consumer confidence and domestic demand. Financial indicators such as financial leverage show a declining financial average from 2006 onwards.

In 2006, the company’ s financial leverage ratio was 3.31 while in 2015; the financial leverage ratio was 2.34. Similarly, return on invested capital continues to decline and is currently at 20.35 as of June 30, 2015. Year over year, Woolworths Supermarket revenue growth has been -0.14, while on a 3-year average, the growth is 3.16 as of June 30, 2015.

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