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 restrict (FBG) using the cardinal respective 1996 Annual Reports, and to assess the enthronement value of the two companies since investment value depends on past, on-going and futurity performance. Investment value can be find start by looking at the return and risk and discretion the future plans of a company. orgy is primarily a retailer, selling food for thought and general merchandise through string store operations within Australia, while FBG is an international participation 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 several(a) details about the two companies, and see that the performance of WOW 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 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 at present follow that FBGs performance was poorer than WOWs. The constitution of the business must firstborn be considered. Although the two companies maintain similar EBIT, the large end in the two ratios is accounted for by a considerable passing 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 thread on hand, while WOW is a retailer, and thus would desexualize hold of less need for non-current assets, with inventory being the largest component of its assets (44%). FBG is act 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 get a full ess ay, holy order it on our website: BestEssayCheap.com

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