Wesfarmers Limited A Financial Analysise Report - Click to Get Sampl

Question: Analyse the qualitative aspect of Wesfarmers Limited. Answer: Qualitative Aspect Company Introduction Wesfarmers is one of the largest conglomerates in the world operating in six business segments which include operating supermarkets, departmental stores, office supplies, home improvement, chemicals, resources, energy, fertilisers and industrial and safety products in Australia and New Zealand. Some of the most known brands of the company include Target, Coles, Bunning, and Kmart. The company employs nearly 210,000 people and has a shareholder base of approx 5000,000. (Wesfarmers, 2016) Most of the profit of the company comes from the retail business as the company focuses on offering a wide range of merchandise and creating value for the customers. The energy and chemicals business is also well earning. The earnings of the industrial businesses is low as compared to retail because the sales is driven by the commodity prices which are not under the companys control and the prices have been low in the recent times. Wesfarmers is known to be one of the highly profit making companies in Australia. Woolworths is one of the biggest competitors of Wesfarmers but according to a report Wesfarmers is a better performer and has a stronger growth story. (Kohut, 2016). Stock Price Movement The market value of the shares of Wesfarmers Limited is currently $41.17. (Yahoofinance, 2016). If we see the trend of stock movement for the last 1 year, we will see that the companys stock prices have been on a rise with fluctuations though. There is no major change in price and hence we can say Wesfarmers has a stable price movement. This is because the companys earnings have been strong and have grown year on year basis. The company focuses on operational excellence and is focuses on diversifying its business by acquiring businesses with sound financials and disposing off its business which are not profit making. Also the company reinvests billions and dollars of money for growth and acquisitions and also focuses on paying dividends to shareholders which has led to a positive sentiment for the share prices of the company and thus the share prices of the company has an increasing trend which is more or less stable. The share price movement can be shown with the help of a chart. (Finance. Yahoo, 2016) References Wesfarmers, (2015), Wesfarmers Annual Report, 2015 Delivering Value Today and Tomorrow Wesfarmers, (2014), Wesfarmers Annual Report, 2014 Delivering Today, Value Tomorrow wesfarmers, (2016), Wesfarmers Dividend Information, accessed online on 28th May, 2016, Wesfarmers, (2016), Wesfarmers About Us, accessed online on 28th May, 2016.