Wesfarmerss Company

Wesfarmerss Company Le huong Bao LinhPhan Quoc BaoTran Thanh Long

OutlineIntroductionRevenue recognitionProperty, plant & equipmentAuditor responsibleRegulation in financial statementBoard of DirectorsBusiness sustainabilityEarning Per Share (EPS)Binh Thuong Companys abilityIntroductionDiversified Corporation

Supermarket, home improvement, office supplies

Principal Activities

Retailing operation of supermarket, home improvement & outdoor living products

Retailing office & technology products,

Revenue RecognitionRevenue recognised fair value received, receivable to extend

Sales of goodRending of serviceInterestDividendsOperating lease rental venueInsurance premium revenueProperty, Plant & EquipmentProperty, plant & equipment = Cost Accumulated depreciation

Cost = total value of all shares

Accumulated depreciation = plant & equipment , land & buildings

Buildings 20 40 yearsPlant & equipment 3 40 yearsAuditor ResponsibleOld Auditor : Mr Greg Meyerowitz ( Ernst & Young )(3/6/2009 30/6/2009)

New Auditor: Darren Lewsen ( Erns & Young) (1/7/2013)

Provide truth of public

Prevent risk of bias, conflict of interest, safeguard the integrity

RegulationWesfarmers company comply

Australian Accounting Standard (including the Australian Interpretations)

Corporations Regulation 2001

Board DirectorsChairman: Bob Every (2006)

Role Approve future plans Guide & monitor Wesfarmers Protect & Enhance the interest shareholders

Business SustainabilityBusiness Sustainability

Ethical sourcing, packaging reviews supply chains.

Reducing the effect of waste, water, energy to greenhouse.

Support local communities and indigenous programs.

Maintain a strong focus on building a sustainable workforce.

Earning Per ShareEarning Per ShareBinh Thuong Company s AbilityProfitability

Improvement in finance Attract investors Allow Company borrow banks money

20122013ChangeROE20%30% 10%Profit margin16.12%19.54% 3.42%Binh Thuong Company s AbilityLiquidity

Difficulty to meet short-term obligation

Current ration > acid test ratio

Has ability to pay short-term loans

20122013ChangeCurrent ratio1.63 times1.01 times0.62 timesAcid test ratio103.87 times64.43 times39.44 timesBinh Thuong Company s AbilityDebt & equity to finance

Can pay long term loans20122013ChangeDebt cover ratio1.87 times1.11 times0.76 timesDebt to euity ratio49.43 %25.7%23.73%References:Australian Securities Exchange (nd), Listing Requirements, asx.com.au, viewed 10 april 2014, < http://www.asx.com.au/listings/listing-capital-raising/listing-requirements.htm>Ceres (2010), The 21st century corporation: the Ceres roadmap for sustainability, San Francisco, p.8.Hoovers (nd), Wesfarmers Limited Competition, viewed 10 April 2014, http://www.hoovers.com/company-information/cs/competition.Wesfarmers_Limited.8fc46bf914ad1848.htmlWesfarmers Ltd (2013), Annual report 2013, Wesfarmers.com.au, viewed 10 April 2014 Woolworths Ltd (2014), Annual report 2013, Woolworthslimited.com.au, viewed 10 APRIL 2014 http://www.woolworthslimited.com.au/annualreport/2012/pdf/WW_AR12_Full.pdf