Ratio Statistic
Ratio | Industry benchmark ratio | Woolworths’ ratio | Brief Comment | Current Ratio | 1.2:1 | 0.80:1 | The current ratio ofWoolworth is considerablybelow industry average themovement from it is 33.33% (1.2-0.8)/1.2*100) Which is not really good for business | Liquid ratio | 0.7:1 | 0.34:1 | The Liquid ratio of Woolworth is considerably below industry average. The movement is 51.43 %. It is showed that the business may have problem in paying their debt.(0.7-0.34/0.7*100) | Gross Profit ratio | 25.9% | 26.03% | The gross profit ratio of Woolworth is above industry average. Is higher by 0.13% Which indicate a good thing for business | Net Profit ratio | 2% | 3.95% | The net profit ratio of Woolworth is nearly double of industry average. Is higher by 1.95%. | Return on Investment | 8.1% | 10.15% | Return on Investment of Woolworth is above the industry average by 2.05% that mean is very good for Woolworth in term using their asset to make a profit. | Accounts Receivable collection Period | | 1.70 days | | Inventory turnover ratio | 16.6 times | 11.20 times | The Inventory turnover ratio of Woolworth is below the industry average, which is still quite good while Woolworth still have high net profit because the sales increase. | Debt to Equity ratio | 89.6% | 63.22% | The debt Equity Ratio of Woolworth is below the industry average by 26.38% which is indicating good for the business. It is show that Woolworth have ability to pay their debt with capital | Times Interest cover | 3.6 times | 9.2 times | The times interest cover of Woolworth is higher compare the industry benchmark by 5.6 times. Which is showing that Woolworth have a capability to pay their interest from their loan | | | | | | | | |
Report * Liquidity : The current ratio and the liquid ratio are both below the industry average by 0.4 indicating potentially minor liquidity problem in the future. Might suggest that the business is not well placed to pay
Report * Liquidity : The current ratio and the liquid ratio are both below the industry average by 0.4 indicating potentially minor liquidity problem in the future. Might suggest that the business is not well placed to pay