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日期:2022-09-30 12:58

FINM7409 Financial Management for Decision Makers Semester 2, 2022


INDIVIDUAL ASSIGNMENT

Due Date: 5:00pm, 13 October 2022. Submit online via the Blackboard submission folders as explained later

in this document.

Background

Coles Group Limited (ASX: COL) is a public company that operates as a retailer in Australia. It operates

through Supermarkets, Liquor, and Express segments. The company operates 835 supermarkets; and

coles.com.au, which offers a choice of home delivery, including same-day, overnight drop and go services,

and pick up from click and collect locations. Its Coles Financial Services provides insurance, credit cards, and

personal loans to Australian families. The company is also involved in the retailing of liquor through its 933

stores under the Liquorland, First Choice, First Choice Liquor, and Vintage Cellars brand names. In addition,

it operates 711 fuel and convenience stores; and operates as flybuys loyalty program. The company was

formerly known as Coles Myer Ltd. and changed its name to Coles Group Limited. Coles Group Limited

was founded in 1914 and is based in Hawthorn East, Australia.

Woolworths Group Limited (ASX:WOW) is a public company that operates retail stores. It operates through

Australian Food, Australian B2B, New Zealand Food, BIG W, and other segments. The Australian Food

segment procures and resells food and related products and provides services to customers in Australia. It

operates 1,087 Woolworths supermarkets and Metro Food stores. The Australian B2B segment engages in

procurement and distribution of food and related products for resale to other businesses, as well as provision

of supply chain services to business customers in Australia. The New Zealand Food segment is involved in

the procurement and resale of food and drinks and provides services to retail customers in New Zealand.

This segment operates 190 countdown supermarkets. The BIG W segment procures and resells discount

general merchandise products to customers in Australia. This segment operates 176 BIG W stores.

Woolworths Group Limited also engages in the wholesale operation. The company was formerly known as

Woolworths Limited and changed its name to Woolworths Group Limited in December 2017. Woolworths

Group Limited was incorporated in 1924 and is based in Bella Vista, Australia.

General Description of Tasks

“You are an assistant analyst for an investment bank. As part of a team responsible for preparing a report that sets out

a complete financial analysis to the (adjusted) accounts of the above two companies, you contribute to this report by

conducting the ratio and common-size analyses of the Income Statements of these companies”

Files Provided on Blackboard

Excel spreadsheet template, named “FINM7409_Assignment_Template.xlsx”

o The income statement and balance sheet for the above two companies

o Complete this spreadsheet for the Requirement 1 below (the financial ratio analysis part)

Two financial reports for the companies:

o “Coles_Annual_Report_2021.pdf”

o “Woolworth_Annual_Report_2021.pdf”

The Coles and Woolworth financial reports serve as background information only. You do not need to use

these reports to conduct the analysis, but you may want to use them to glean any information you see useful

for your analysis and interpretation in the requirement 2 below (the essay part).

REQUIRED:

1) Using the Excel spreadsheet template FINM7409_Assignment_Template.xlsx available on

Blackboard, complete the ratio analysis as well as the common-size analysis for the Income

FINM7409 Financial Management for Decision Makers Semester 2, 2022

2


Statements for both companies. To fully complete this task, you are also required to fill out the

missing numbers in the “Other Inputs” worksheet by using Yahoo Finance to obtain share price and

dividend information. NOTE: Do not change the order or the name of the worksheets.

2) Using the financial ratios and the common-size reports you have completed in the Requirement 1)

above, write a short essay in a Word document (word limit: 700 words) to answer and discuss the

following questions:

a) What are the trends in gross profit margin, operating profit margin, and net profit margin over

the last 5 years?

b) What are the key drivers of these trends? You will need to make graphs to show such trends in

your analysis.

c) What factors do you think are the most important underlying the difference in financial

performance between the two companies over the 5-year period?

d) Going forward, in 2-5 years’ time, what do you think are the key challenges facing the two

companies to maintain their profitability?

Mark allocations

Excel computations (Part 1) 40

Essay (Part 2) 50

Presentation 10

Total 100


Submit Your Assignment

The folder “Assignment Submission” on Blackboard has three submissions:

1. Part 1 (Excel submission): This is where you submit your Excel file that contains your answers to

Part 1 of the Assignment. Your Excel file must be re-named in the following format:

“Assignment_XYZ.xlsx”, where XYZ stands for your student number. For example, if your student

number is 12345678, then your Excel file must be named “Assignment_12345678”. This Excel file will

be marked.

2. Part 2 (pdf submission): This is where you submit your pdf document (converted from Word) that

contains your answers to Part 2 of the Assignment. Name the file as “Assignment_XYZ.pdf”, where

XYZ is your student number. You may submit this part as many times as you like but only the last

submission will be marked.

3. Part 2 (pdf Turnitin Submission): This is where you submit the same pdf document above. Name

the file to “Assignment_XYZ.pdf”, where XYZ is your student number. Each time you submit the

file to Turnitin, you will get a report for the purpose of plagiarism detection. You may re-submit

through Turnitin as often as you like, and the last version should be submitted here and will be

marked.

Late submission will incur penalties as outlined in Section 5.3 of the Electronic Course Profile, which also

provides details about submission extension.


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