ASSIGNMENT 1 

In gradebook you will see a section “Company number” with a number between 1 and 3. This is the number of the company that you are allocated for this assignment.

1. JB Hi Fi Ltd (JBH) http://www.jbhifi.com.au

2. Wesfarmers Ltd (WES) http://www.wesfarmers.com.au

3. Woolworths Ltd (WOW) http://www.woolworthsgroup.com.au

Required:

A. Access the annual reports for your allocated company for the years 2014, 2016 & 2018 in the Assessment folder of Blackboard. You should only use the figures from the annual reports provided - do not access your reports or figures from any other source.

B. These annual reports will provide you with six years of financial statements for 2013, 2014, 2015, 2016, 2017 & 2018.

C. Calculate the following ratios for the five years 2014 - 2018 (2013 financial information will assist you in calculating averages, where necessary). Most ratios are available in the textbook - and a reference is given for those that are not in the text.

1. Return on total assets (available in your study guide)

2. Rate of return on ordinary equity

3. Operating profit margin

4. Gross profit Margin

5. Inventories turnover period

6. Settlement period for debtors

7. Current ratio

8. Quick ratio (acid test ratio)

9. Debt to assets ratio (available in your study guide)

10. Interest cover ratio (Times interest earned)

11. Assets turnover (available in your study guide)

12. Earnings per share

13. Price-earnings ratio (refer to Blackboard for stock price history for five years).

14. Dividend yield (refer to Blackboard for the dividend history for five years).

In each of the ratios, you should firstly write out the ratio formula that you used and then show the numbers that you used to calculate your answer, before showing your answer. Your answer should be in a format that indicates whether it is in %, times, ratio or days and to two decimal places.

D. Given the ratios over five years, comment on the company’s profitability, efficiency, liquidity, financial gearing and investment ratios. Approximately 1,000 words.

Note: You should also refer to coverage in the financial press that is related to your company. This will help you in evaluation of the company - please cite your sources! 

E. Examine the Statements of Cash Flows of your company for the years 2017 and 2018. Discuss the changes in each of the cashflows from operating, investing and financing activities. From this report, what can you glean about the business' activities in each year?

F. Using the answers you calculated in part C, enter your answers into the area provided in Blackboard in assessments before uploading your assignment in the assessments section. This portion of your assignment will be automatically graded, so it is very important that you follow the instructions outlined here and in Blackboard.