Wesfarmers : Financial Analysis

Wesfarmers : Financial Analysis Wesfarmers main focus is very primary but an effective objective of providing a satisfactory recidivate to its shareholders. The beauty of this objective is that it is measurable, and they seek to achieve a parry on equity, which ranks Wesfarmers in the top 20 percent of Australias listed companies and able to manage the portfolio of businesses which make up the group with quick fiscal focus (Australian Securities Exchange,2008). The ongoing success of Wesfarmers is based on shareholder focus, financial disciplines and goodwill and hence it has achieved signifi cornerstonet financial upgradeth in the preceding 6 age. It is a diversify Australian group, provides home improvement products, building supplies, coal mining, gas, industrial and safety products, food, groceries, apparel, office products and insurance policy (Business Review, 2008). Wesfarmers key strategy is to grow through acquisitions. In line with the strategy, Wesfarmers made several acquisitions everyplace the years which enhanced their financial position and stability. Over the years the group acquired Linde Gas, which is a major provider of gas to the Australian Industrial market.

In 2003 Wesfarmers finalized the acquisition of Lumley Australian and New Zealand insurance business which helped diversify Wesfarmers business operations and finally in 2007, Wesfarmers acquired the Coles group (Greenhalgh, 2008). Table 1: Major Acquisitions Business costEBIT ($m)EV/EBIT multiple OAMPS7255812.5 Linde Gas5007313.5 Coles classify19,3001,15016.8 Source: www.wesfarmers.com.au The most common form of financial abbreviation is undertaken using ratios, using the data from financial statements and other cogitate sources. By analyzing and calculating the figures obtained from the Wesfarmers financial statements of the preceding 5-6 years we can develop an insight to the success and growth of the company (accounting school text book). Over the years Wesfarmers has grown... If you want to get a generous essay, order it on our website: Orderessay

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