Financial Statement of Woolworths Limited

Executive Summary

The report provides an analysis of the financial statement of Woolworths Limited. This report is divided into three basic parts. The first part of the analysis consists of a background summary of the company's products and services, its mission, and the strategic position of the company in relation to its competitors etc. It was found that Woolworths Limited is a retail company made up of a number of businesses, which conduct its operation with a number of different brands. The company always focuses on continuous cost reduction with the help of its supply chain.

An analysis of the company's profitability, liquidity, and capital structure has been done in part two, on the basis of the annual reports from 2002 to 2006. The analysis shows the financial position of the company and in some instances, comparison with its competitors reveals that the company is ahead of its competitors in different ways. This part also includes the economic factors that have impact on the company's financial performance together with any other factors that could affect the company's overall performance. Comments on the auditors' report have been made, and their independency and followed procedures have been discussed as well. It was found that the auditors' independency was ensured and the audit was done according to the regulations.

The final part of the report covers a number of areas. The annual report of 2006 is the consolidated entity's first full year financial report prepared in accordance with Australian Accounting Standards, being AIFRS and AASB. Some of the accounting policies have been discussed, which can affect the financial position substantially. Earning management was detected, while the earning quality was considered. An effort was given to identify the corporate social responsibilities of the company. Woolworths recognises the impact of its operation