Conducting an analyst service for Woolworths Group

You are hired by a client to conduct an analyst service for Woolworths Group as they are
thinking of buying some shares for that company and become their investors. They asked
for your help to conduct an analysis of Woolworths Group’s financial statements and give
them some recommendation at the end whether to invest in the business or not.
Refer to Woolworths Group financial statements 2018 and 2017 and make a formal report
to your client and use the below questions as a guideline for you to make a

  1. How much profit did they earn for the period ended 2018? Do a horizontal analysis for
    the profit and use 2017 as the base year! Is it better or worse than 2017? Why do you think
    it happened? Comment on their overall financial performance in 2018 compared to 2017!
    (3 Marks)
    2a. Calculate their Current ratio and Quick ratio for 2018 and 2017! Compare those two
    years and give comment whether they are better or worse in 2018! (3 Marks)
    2b. Explain what are the differences between current ratio and quick ratio! What can you
    tell about the quick ratio in Woolworths group compare to their current ratio? Do some
    research on the industry average and comment whether it is normal for woolworths to have
    those numbers for their ratios. (3 Marks)
  2. Have a look at the Statement of Cash Flow of Woolworths group in 2018! What does it
    mean by operating, investing and financing activities in the statements? Briefly comment on
    Woolworths group performance in those 3 activities in 2018! (3 Marks)
    Your report should be at the maximum of 1,000 words with reference list excluded from the
    word count.
    Your report should include: introduction, body, conclusion, recommendation and reference
    list (1 Mark). Correct reference list using APA style is required (1 Mark) and the report
    should be presented professionally (1 Mark).

Sample Solution