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 Brewing Group limit (FBG) using the cardinal respective 1996 Annual Reports, and to assess the investment value of the two companies since investment value depends on past, on-going and incoming performance. Investment value can be find turn out by looking at the return and risk and taking into custody the future plans of a company. belly laugh is primarily a retailer, selling food for thought and general merchandise through filament store operations within Australia, while FBG is an international plenty which produces and markets alcoholic and non-alcoholic beverages, as well as having a major(ip) investment in licensed properties. Within this report, we disclose dissimilar details about the two companies, and see that the performance of WOW and FBG during 1996 is good. WOW has go on to be a stable company, and FBG has continued to expand and r estructure its operations. Return When equivalence 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 presently follow that FBGs performance was poorer than WOWs. The constitution of the business must source be considered.

Although the two companies maintain similar EBIT, the large distinction in the two ratios is accounted for by a considerable divergence in the value of the extreme assets. FBG, a producer of beverages, has a lot of non-current assets (84% of total assets) as well as rolling wave on hand, while WOW is a retailer, and thus would engage less need for non-current ass! ets, with inventory being the largest component of its assets (44%). FBG is continue to develop and grow in two main areas. Firstly, FBG has invested in setting up Fosters China, presently operating at a loss. However, once this is developed, there will be a... If you want to give out a full essay, holy order it on our website: OrderCustomPaper.com

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