ACCT5001

Individual Assignment - Part B: Ratios

NB: Do not change the format of this worksheet

Woolworths Limited Metcash Limited

Use 2012 annual reports
Horizontal Vertical Horizontal Vertical
Pro forma Financial Statements 2012 2011 2011-12 2012
2012 2011 2011-12 2012
Income Statement (Ignore other comprehensive income) AUD$'m AUD$m % % AUD$m AUD$m % %
Sales Revenue (sale of goods only) 55,129.8 52,609.1 4.8% 100.0% 12,255.1 12,364.0 -0.9% 100.0%
Cost of sales -40,792.4 -39,050.0 4.5% 74.0% -11,086.1 -11,186.9 -0.9% 90.5%
Gross profit from continuing operations 14,337.4 13,559.1 5.7% 26.0% 1,169.0 1,177.1 -0.7% 9.5%
All other rev/income (incl financial income & share of associate profit/( 397.0 400.5 -0.9% 0.7% 111.7 96.2 16.1% 0.9%
Operating Expenses (excl. financing/interest costs) -11,347.7 -10,666.7 6.4% 20.6% -826.3 -831.7 -0.6% 6.7%
Significant items 0.0 0.0 N/A 0.0% -176.7 -6.9 2460.9% 1.4%
Earnings from continuing operations before interest and tax (EBIT) 3,386.7 3,292.9 2.8% 6.1% 277.7 434.7 -36.1% 2.3%
financing cost/expense -318.3 -300.1 6.1% 0.6% -80.3 -77.5 3.6% 0.7%
Net Profit from continuing operations before income tax 3,068.4 2,992.8 2.5% 5.6% 197.4 357.2 -44.7% 1.6%
Income tax expense -885.0 -869.2 1.8% 1.6% -71.8 -106.1 -32.3% 0.6%
Profit/Loss from continuing operations after tax 2,183.4 2,123.6 2.8% 4.0% 125.6 251.1 -50.0% 1.0%
Net profit/(loss) from discontinued operations -366.3 16.7 -2293.4% -0.7% -27.2 0.0 N/A -0.2%
Profit for the period 1,817.1 2,140.3 -15.1% 3.3% 98.4 251.1 -60.8% 0.8%

Statement of Financial Position

Assets
Cash and cash equivalents 833.4 1,519.6 -45.2% 3.9% 51.5 152.9 -66.3% 1.3%
Trade receivables (excl. Impairment allowance, other & prepayments) 231.3 211.5 9.4% 1.1% 883.6 876.1 0.9% 21.9%
Inventories 3,698.3 3,736.5 -1.0% 17.1% 833.6 954.9 -12.7% 20.6%
All other current asset items 1,039.1 859.3 20.9% 4.8% 249.9 147.8 69.1% 6.2%
Total current assets 5,802.1 6,326.9 -8.3% 26.9% 2,018.6 2,131.7 -5.3% 50.0%
Property, plant and equipment 9,589.0 8,620.3 11.2% 44.4% 224.4 197.6 13.6% 5.6%
Intangible assets 5,282.0 5,236.6 0.9% 24.5% 1,551.9 1,291.1 20.2% 38.4%
All other non-current asset items 908.0 644.6 40.9% 4.2% 243.1 179.5 35.4% 6.0%
Total non-current assets 15,779.0 14,501.5 8.8% 73.1% 2,019.4 1,668.2 21.1% 50.0%
Total assets 21,581.1 20,828.4 3.6% 100.0% 4,038.0 3,799.9 6.3% 100.0%
Libilities
Trade payables 4,013.4 4,132.0 -2.9% 18.6% 1,112.2 1,205.4 -7.7% 27.5%
Borrowings ( interest bearing current liabilities) 54.4 1,471.1 -96.3% 0.3% 17.8 8.6 107.0% 0.4%
Current provisions 939.8 861.0 9.2% 4.4% 155.1 73.4 111.3% 3.8%
 All other current liability items 1,758.6 1,558.1 12.9% 8.1% 291.0 187.0 55.6% 7.2%
Total current liabilities 6,766.2 8,022.2 -15.7% 31.4% 1,576.1 1,474.4 6.9% 39.0%
Borrowings (non-current interest-bearing loans/debt) 4,695.3 3,373.8 39.2% 21.8% 974.0 826.7 17.8% 24.1%
Non-current provisions 527.3 465.2 13.3% 2.4% 151.4 54.2 179.3% 3.7%
All other non-current liability items 1,146.0 1,121.4 2.2% 5.3% 1.4 1.8 -22.2% 0.0%
Total non-current liabilities 6,368.6 4,960.4 28.4% 29.5% 1,126.8 882.7 27.7% 27.9%
Total liabilities 13,134.8 12,982.6 1.2% 60.9% 2,702.9 2,357.1 14.7% 66.9%
Equity
Contributed equity and shares held in trust 4,275.9 3,932.5 8.7% 19.8% 1,148.8 1,139.0 0.9% 28.4%
Retained earnings / (Accumulated losses) 4,163.4 3,897.5 6.8% 19.3% 86.3 208.0 -58.5% 2.1%
Reserves -243.9 -236.8 3.0% -1.1% 26.0 28.2 -7.8% 0.6%
Other -7.2 0.0 N/A 0.0% 0.0 0.0 N/A 0.0%
Total Parent Equity interest 8,188.2 7,593.2 7.8% 37.9% 1,261.1 1,375.2 -8.3% 31.2%
Non-conrolling interests in the equity 258.1 252.6 2.2% 1.2% 74.0 67.6 9.5% 1.8%
Total equity 8,446.3 7,845.8 7.7% 39.1% 1,335.1 1,442.8 -7.5% 33.1%
Total liabilities and equity 21,581.1 20,828.4 3.6% 100.0% 4,038.0 3,799.9 6.3% 100.0%

Cash Flow Statement

Net cash (used in)/provided by operating activities 2,873.8 2,991.1 -3.9% 284.3 142.5 99.5%
Net cash (used in)/provided by investing activities -2,080.3 -2,177.4 4.5% -270.6 -82.3 -228.8%
Net cash (used in)/provided by financing activities -1,469.2 -0.7 -209785.7% -115.5 -117.8 2.0%
Net increase / decrease in cash and cash equivalents -675.7 813.0 -183.1% -101.8 -57.6 -76.7%
Cash and cash equivalents at the beginning of the year 1,519.6 713.4 113.0% 152.9 210.6 -27.4%
Net foreign exchange difference 1.3 -6.8 119.1% 0.4 -0.1 500.0%
Cash and cash equivalents at the end of the year 845.2 1,519.6 -44.4% 51.5 152.9 -66.3%

Financial ratio analysis:

Gross profit margin 26.0% 25.8%
Profit margin
Operating expense ratio -20.6% -20.3%
Cash flow to sales ratio 5.2% 5.7%
Return on assets
Return on equity 26.8%
Asset turnover 2.60
Inventory turnover
Receivables turnover
Payables turnover
Days Inventory 25
Days Receivables 1
Days Payables
Cash to cash cycle / operating cycle
Current ratio 0.86 0.79
Acid (Quick) ratio 0.31 0.32
Current cash debt coverage
Debt to Equity ratio 155.5% 165.5%
Financial Leverage 255.5% 265.5%
Times interest earned
Cash debt coverage 0.22