Analysis Of Annual Report: Woolworths Case Study

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Present an analysis of the annual report considering Woolworths Case Study 

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 Executive Summary

The overall report has significantly portrayed the consequences pertained by the retail organization Woolworths so as to ensure the probability to enhance the business operations effectively. It is quite feasible enough for the organization to adhere the corresponding characteristics to as to understand the aspects inculcating the justified formulation so as to ensure the business operation in the financial year 2016. It is quite effective enough to generate the perception considering the application through pertaining the effectiveness of business. It is quite feasible enough through justifying the concept accumulating all the purpose for generating the structure for pertaining business consideration. Thus the overall report has been portrayed in accordance with the context of effective resources of the retail companies enlisted in the Australian Stock Exchange.

< style="text-align:justify;"> Introduction

In this particular report, the overall justification regarding the contemporary issues of the retail companies of Australia prior to the significance of conceptual frame work under AASB has been depicted. The report has covered the justification regarding the aspects of Woolworth and Wesfarmers, who are operating successfully in the retail market of Australia. Here the overall justification regarding the basic determination of the annual report of both the retail companies for the financial year 2016. 


Analysis of Company Overview:

Woolworth is one of the most important retail giant prevailing their business operation in the financial market of Australia. It can be said that the market challenges faced by the company in parts of Australia and New Zealand has pertained effective strategies so as to tackle different kinds of commitments adhered for structuring into a better organization in the financial year 2020. The company has also intervened some of the policies so as to builds effective relationship and trust by encouraging diversities as well as supporting all the health care activities in the world. Development of detailed competencies with focus upon respective plan of action has entailed the aspects regulating important feasibility of the company. Whereas, Wesfarmers has intended to be a strong company with justified business portfolio which will surely attain the significance of delineating cash, which has been generated through the aspects of governance so as to ensure efficient workforce and cultures with the shareholders for creating immense values for the company (Jorgensen, et al., 2016).  It can be said that the overall objectives of the company is to provide justified returns to its shareholders so as to ensure the feasibilities of strengthening the financial aspects of the company.  In context to the conceptual framework the AASB principles have been justified with the significance in delineating the strategies that have been implemented by the organizations, In accordance with the context regarding the framework, it can be said that the perspectives regarding the adjustment has formulated the feasibility regarding the adjustments regarding the entailed fact of considering the valuation. It has been observed that the purpose of attaining this particular structure, overall significance has been enabled the fact of understanding the strategies of the company that have been pertained in the financial year 2016.

Prudence concept of corporate Reporting

Prudence concept in accounting and financial reporting has significantly addressed the track record with help of key standards in order to synthesize the importance regarding the conceptual framework. As reasonability is obviously reflected in the guidelines it appears to be correct that its part is talked about in the structure that is utilized to set those principles. The most recent exchange paper on the structure from IASB does not, notwithstanding, propose its consideration. In addition, that exchange paper is proposing the expulsion of the likelihood of inflow surge of financial advantages from the meaning of benefits and liabilities and that certain acknowledgment tests ought not to be given. For resources, specifically, this opens up the degree for including a greater number of things as resources than under current IFRS. Rather, the importance of the data gave will be considered and vulnerability is probably going to be considered in measuring things as opposed to in choosing whether they will be perceived in any case. From the aspects of the company Woolworths the concurrence regarding instability should be reflected in estimation. In reasonable qualities in light of models and values in view of future money streams counting weaknesses of advantages at cost the instabilities must be completely perceived, for example in the hazard or liquidity segments of rebate rates. The conclusion from the occurrences in the current IFRS would be that the structure needs a component of judiciousness in the acknowledgment of advantages and liabilities instead of just to reflect instability in estimation. Judiciousness in acknowledgment of advantages and liabilities ought to be more straightforward than conceivably evaluated reasonability in estimation. The bookkeeping measures clarify which things ought to be perceived and when, and the bookkeeping strategies ought to expand on how those benchmarks have been connected by the organization. As the significance considering the financial statements it has been set out numerous things should be measured at cost and this naturally gets a component of judiciousness in the qualities perceived and the planning of benefit acknowledgment, as noted previously. Past that, judiciousness in reasonable esteem or income based estimation is not useful. This is the place it turns out to be difficult to deny the contentions that judiciousness prompts unfit predisposition in records. Reflecting vulnerability in estimation, then again, is an endeavour to reflect genuinely what advertises players apply by and by and what financial matters would manage. Some present occurrences of reflecting judiciousness in the introduction of money related articulations depend on the acknowledgment of a few picks up in Wesfarmers Ltd instead of in benefit. There is a recognized absence of lucidity in the standards of what constitutes benefit and what constitutes actual standards of which judiciousness is only a section; this still stays to be settled in the structure.

Analysis of Performance Overview

The aspects of the retail giants has significantly measure the features encircling upon the performance achieved on behalf of the demand raised from the market. It can be said that the overall justification has entailed the circumstances that can favourably derived the perspectives regulating from the different feasibilities of the business. It is quite necessary for the company to cumulate the competitive pressures that are generally increasing. It can be said from the point of view of Woolworths that the justification alleviating the overall pressures has ensured the circumstances regarding the actual circumstances that have been derived from the factors generating all the perception of cumulating the business operations. It can be said that the natural resources of the company are managed through propagating the efficient considerations of upholding the aspects. It can be easily said that the mitigation of the climate changes has efficiently handled the overall operations so as to ensure the factors that will surely enhance the performance of the company (Dobrev & Hart, 2015). The company Woolworth has significantly achieved the criteria through ensuring the aspects regarding the feasibilities of the jobs regulating the indirect contribution in the economy of Australia. It has been valued that the company has determined 805,000 jobs to the individuals and has recovered a value of $119 billion in the financial year 2016. From the operations it can be said that the company has paid 7.7 billion dollar of wages in order to inculcate the determination regarding all the feasibility of continuing the business operations. Moreover, the company has also inculcated different perception of paying dividend for pertaining the 1.0 billion dollar to the shareholders. Apart from this the direct community investment of the company has been valued at 31 million $ by adhering 1300 products so as to ensure the perspectives in order to which the different specification regarding the revenues that has been acquired in the respective financial year. On the contrary, the overall annual report of the company Wesfarmers has significantly entailed that the shareholder’s equity of the company has been valued at 22949 billion dollar which has also encircle the feasibilities for adhering the perspectives so as to ensure better feasibilities of the firm. Moreover, the company has paid 186 billion of dividends so as to acquire the resemblance regarding the overall perception controlling the business operations effectively.  On the other hand, it can be said that the justified significance regarding the fact of value distribution, it can be said that the determination has cumulated the factors of acquiring extra profitability. 

Analysis of Objectives of the firm

The overall justification regarding the aspects continuing the variation has entailed the factors that the overall justified policies applied by the companies will gather better feasibility in the long run. Considering the objectives of the company Woolworths, it can be said that the company has entailed very broad commitment so as to ensure the factors in order to understand the feasibilities inculcating the health and the food partnership among the respective end users. It is quite obvious that the firm has intervened a joint propagation so as to ensure the perspectives of aiming the improvement regarding the habits of Australian dietary purpose. It is quite important for the determination regarding the aspects of reducing level of sodium provided in the foods. Moreover, the company has also measured the eliminated additives so as to control the perspectives in order to determine the actual perception of controlling the business operations. Focusing in removing the additives has entailed that the company is cumulatively attained upon the factors that can generate much more importance to the branded products that are generally made by the company itself. It can be easily said that the reformulation of the cleaner products has entailed the perception of quantifying the different aspects through which different aspects has been significantly pertained. (Crane & Matten, 2016) Apart from this maintenance of effective corporate strategies inside the organization has been justified so as to ensure effective business facilities and increased revenue in the long run. It is quite evident that the company has measured its operation through improving the aspects regulated through the prosperity of maintaining effective quality care among the suppliers. The company has focussed on the objectives of considering supplier relationships that can adhere excess values so as to ensure the feasibilities of entailing the business operation of the firm. Moreover, the justification concerning the effectiveness of the firm has intended the specific measurement through acquiring all the performance. In accordance to the framework, it has been perceived that the standpoint of consolidating overall aspects has generated the purpose of identifying the application through understanding the specification consolidating the actual feasibility of the firm. It can be said that the company Wesfarmers has intended the criteria to adhere the overall performance that has been replicated with the valuation and techniques regarding the returns provided top the shareholders. On the other hand the replication of adjusting the scenario has reflected that the company has determined its effects so as to pertain business valuation in the long run. Moreover, the company has also intended to maintain the cash flow generation regarding the overall business maintenance. It has been observed that the long-term growth of the firm has been perceived considering the factors that can easily manage the working capital successfully. The aspects of strong capital expenditures have entailed the process that has upgraded the strong consequences regarding the overall factors. The long term focus has been continued the upliftment so as to ensure the investment proportions of the firm. It can be easily said that the consideration regarding the financial discipline has been significantly entailed. In order to strengthen these feasibilities it can be said that the overall justification will be provided with the suitability regarding the achievement of procuring financial health. The strengthened aspects acquired from the balance sheet have generated diversities in procuring the funding resources. It has been optimized so as to generate cost acquired for controlling all the perspectives. Maintenance of strong credit metrics has also intended that the overall cash flow will be sufficed. The overall features of risk management maturities have developed the significance in inculcating the overall progressions effectively (Eriksson & Kovalainen, 2015)

Analysis of Financial Statements

The analysis of the financial statements has been entailed with the fact for determining the overall assessment formulated in a particular financial year. Here the analysis has been pertained with the help of different values acquired from the annual report of the company Woolworth and Wesfarmers Plc. From the overall analysis of the financial statement provided in the annual report, some of the important interventions has been endeavoured so as to ascertain the financial performance of these two retail companies enlisted in the Australian Stock Exchange.



From the justification of profitability of both the companies, has secured effective profitability in the financial year 2015. The company Wesfarmers has secured higher profitability by pertaining retail market operations in the industry. In the financial year 2016, the company Woolworths has secured higher profitability than Wesfarmers but due to the interventions regarding the economic disruption, both the company has secured a lower profit but comparatively Woolworths has secured higher margin from its operations. 

Current Assets


The current asset valuation of the company determines the liquidity in each of the financial year. The company Wesfarmers has secured an inevitable progress in securing the liquidity value of the cash position in both the financial year. It can be said that the company has significantly managed the operation to secure effectiveness in encircling the liquidity operations so as to pursue strong impetus in generating assets of the company. The company Woolworth has to maintain the price of the products so as to acquire more customers and increase the revenues through liquidity in the long run. 

Analysis of Recent Market Trends

In this section of the report, the overall justification regarding the market trends of the company Wesfarmers and Woolworth has significantly addressed in comparison to the industry standard of Australian Stock Exchange. 

As per the graph, it can be easily said that the performance of the company Wesfarmers has deteriorated from the instances in the financial year 2009. Considering the market stability, the firm has increased in capitalization in the financial year 2010. Thus from the advancement, it can be said that the company has greatly achieved stability judging the actual perception of the business feasibility pertained by the Australian Stock Exchange in the upcoming financial year. Thus by replicating the business feasibility, the company has enhanced the operation and has followed important financial consideration for grabbing higher revenues than that of the standard possessed in accordance with the Australian Stock Exchange. On the other Hand the company Woolworth has significantly managed the feasibility to determine the possession in order to control the operation in each of the financial year. It has maintained the industry and economic standard pertained as per the Australian Stock Exchange and on the contrary it can be said that the company is operating with a successful financial feasibility in attaining justified purpose of enhancing the revenues. 

Analysis of Core Competencies

The proceeded with development and achievement of Woolworth relies on upon the capacity of the Organization to comprehend and react to the difficulties of a dubious and evolving world. As an extensive, scattered and complex association, this vulnerability produces hazard, with the possibility to be a wellspring of both open doors and dangers. By comprehension and overseeing hazard, the Organization gives more noteworthy sureness and certainty to every one of its partners. The hazard administration strategy is in an indistinguishable area from the administration structure, alluded to beforehand. Woolworth utilizes the all inclusive perceived announcing structure created by the global economic market. The GRI is announcing structure sets out the standards and pointers those associations can use to gauge and report their monetary, natural, and social execution. This report was set up as per the centre standards of the GRI Rules. The continuation to the report for CDP which is considered as a financial specialist driven divulgence activity empowering organizations to write about hazard recognizable proof and moderation forms identified with environmental change. A worldwide list that tracks the money related execution of driving supportability driven organizations has been affirmed. We keep on benchmark emphatically against the associates in the sustenance and staples retailing industry. 

Every one of the representatives focus on the Set of principles to keep up the most astounding legitimate, moral and moral gauges in the dealings with clients, providers, workers and nearby groups. This code diagrams how representatives can meet the most noteworthy norms through their ordinary practices and decisions. It has been focused on nonstop change, straightforwardness and responsibility. We don't endure working environment offense under any conditions and we require the exchange accomplices to work with us to stamp out any and each example. It has clear, longstanding and acknowledged strategies for exchange accomplices to report any issues. In any case we perceive there is dependably chance to reinforce the frameworks. The Speak Up administration is accessible for exchange accomplices to utilize when typical acceleration techniques have been depleted or are improper (Maas & Reniers, 2014)


Thus it can be concluded that the overall justification has been considered in order to delineate the effectiveness of the considered approach so as to deliver the significance regarding all the assertive work flow. Woolworth and its competitors are ready for authoritative and administrative changes through direct engagement with political gatherings in Australia in addition to New Zealand. The approach is that any political commitments require Board endorsement. Woolworth holds fast to all significant political exposure laws and controls and endeavours to make commitments in a bipartisan way. This year, no political commitments were made in Australia. In New Zealand, as they didn't make political gifts or go to any political capacities. 


The company focused on meeting the Australian Protection Standards for the reasonable treatment of Individual Data, which sets measures for the gathering, utilize and exposure, get to, capacity and decimation of individual data that we gather as a major aspect of the business operations. The regard for the clients' entitlement to protection of their own data is central. The companies have strategies and methodology to guarantee that all individual data, regardless of how or where it's acquired, is taken care of delicately, safely, and as per the Australian Security Standards.