Financial analysis of Woolworths Limited (WOW) and Foster's Brewing Group Limited (FBG)

Introduction and Overview This report is to compare the performances of Woolworths peculiar(a) ( bacchanal) and Fosters create from raw material Group Limited (FBG) victimization the cardinal respective 1996 yearly Reports, and to assess the coronation treasure of the ii companies since investment prise depends on past, on-going and prox performance. enthronization value can be find out by looking at the give up and risk and understanding the future plans of a company. screech is primarily a retailer, selling food for thought process and general merchandise finished chain store ope proportionalityns within Australia, while FBG is an external corporation which produces and markets alcoholic and non-alcoholic beverages, as sound as having a major investment in licensed properties. Within this report, we disclose respective(a) details about the devil companies, and see that the performance of guffaw and FBG during 1996 is good. WOW has act to be a stable company, and FBG has continued to expand and restructure its operations. Return When equality the return on assets for WOW and FBG, WOW has a higher(prenominal) ratio of 12.63% compared to FBGs 7.19%. However, it does not immediately note that FBGs performance was poorer than WOWs. The constitution of the melody must first be considered.

Although the two companies maintain interchangeable EBIT, the large difference in the two ratios is accounted for by a considerable difference in the value of the extreme assets. FBG, a producer of beverages, has a mountain of non-current assets (84% of total assets) as well as roll on hand, while WOW is a retailer, and thus would have slight need for non-current assets, with inventory organism the largest component of its assets (44%). FBG is continuing to aim and grow in two main areas. Firstly, FBG has invested in shot up Fosters China, presently in operation(p) at a loss. However, one time this is developed, there will be a... If you want to get a full essay, holy run it on our website: Ordercustompaper.com

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