Comparison Of Woolworths Limited And Harvey Norman Limited

  1. Company description:

Basis

Woolworths Limited

Harvey Norman Limited

1. Products and services

It is a major retail Australian company which offers various products and services to its customers such as drinks, liquor, freezer, dairy products, meat, deli and seafood, fruit and vegan, pantry etc. through its retail stores.

It is an Australian company which operates in retailing of furniture, computers, bedding, consumer electrical products, communications products etc. It offers its products it the clients through various franchises.

2. Chief executive director

CEO of the company is Brad Banducci (Annual Report, 2017).

K.L. Page is the chief executive officer of the company.

3. Salary of CEO

Salary of CEO is $ 2,500,804 in the year of 2017.

Salary of CEO is $ 2,064,922 in the year of 2017.

4. Profit or loss in 2017

Profit of the company in 2017 is AUD 1482 million.

Profit of the company in 2017 is AUD 449 Million (Annual Report, 2017).

5. Latest dividend paid

Company has paid 84cent per share as dividend amount.

Company has paid 12 cent per share as dividend amount.

6. Size of the business

Total size of the business is AUD $ 4,18,97,44,000.

Total size of the business is AUD $2,29,15,00,000

7. Number of employees

Total employees of the company are 2,02,000.

Total employees of the company are 1,05,000.

8. Share price

Total share price of the company on 12th Jan 2018 is $ 27.25.

Total share price of the company on 12th Jan 2018 is $ 4.38.

Products and services

(Annual Report, 2017)

  1. Share price movements:

Share price movement of both the companies and with comparison of AORD is as follows:

Date

WOW Stock Price

AORD stock price

08-12-2017

26.91

6077.4

15-12-2017

27.07

6087.1

22-12-2017

27.53

6167.3

29-12-2017

27.3

6167.3

05-01-2018

27.25

6229.7

12-01-2018

27.08

6176.8

19-01-2018

27.08

6119.3

(Yahoo Finance, 2018)

Date

HVN Stock Price

AORD stock price

08-12-2017

4.2

6077.4

15-12-2017

4.09

6087.1

22-12-2017

4.18

6167.3

29-12-2017

4.17

6167.3

05-01-2018

4.32

6229.7

12-01-2018

4.38

6176.8

19-01-2018

4.41

6119.3

(Yahoo Finance, 2018) 

The stock price of Woolworths limited and Harvey Norman limited has been evaluated in context with the AORD.

The stock price of WOW stock in context with the AORD has been evaluated and it has been found that the stock price of WOW is more volatile than stock price of AORD. The changes into both the stock price explains that the WOW stocks are not driven by the AORD stocks and the changes have taken place into the stock price of WOW due to some other factors. On 8-12-2017, the stock price of the company was 26.91 which have been enhanced to 27.07 due to bit high demand in the market (SMH, 2018). Further, the stock price has been enhanced by 1.70% due to changes into the AORD stocks and the better economical position.

In addition, on 29th Dec, the stock price of the company has been lowered due to 27.3 due to financial analyst report though no changes have occurred in AORD stock (Fortune, 2018). Further, on 5 Jan 2018, stock price of WOW has been lowered and stock price of AORD has been enhanced due to few internal changes into the company (Yahoo Finance, 2018). In addition, on 12th Jan 2018, stock price of AORD and WOW both has been lowered due to changes into the economic position and less interest of the investors. Lastly, on 19th Jan 2018, the stock price of WOW as not been changed from last week but AORD prices have been lowered (FT, 2018). This evaluation expresses that the stock price of Woolworths limited has been affected by industry as well as internal changes.

The stock price of HVN stock in context with the AORD has been evaluated and it has been found that the stock price of HVN and AORD both are volatile though the volatility level of HVN is quite higher. The changes into both the stock price explains that the HVN stocks are driven by the AORD stocks as well as few internal changes such as financial analyst report, dividend announcement etc. (SMH, 2018). On 8-12-2017, the stock price of the company was 4.2 which have been lowered to 4.09 on 15 Dec 2017 due to less interest of investors in the company. Further, the stock price has been enhanced by 2.20% due to changes into the AORD stocks and the better economical position as well as some new announcement has also helped the company to enhance the price (Yahoo Finance, 2018).

Chief executive director

In addition, on 29th Dec, the stock price of the company has been lowered by 0.24% which explains about the slightly changes into the stock price of the company. Further, on 5 Jan 2018, stock price of HVN has been enhanced and stock price of AORD has also been enhanced due to better economic position and the announcement about the financial position of the company (FT, 2018). In addition, on 12th Jan 2018, stock price of AORD has been lowered and HVN stock price has been due to continuous attraction of investors from last week. Lastly, on 19th Jan 2018, the stock price of HVN has been enhanced from last week but AORD prices have been lowered (Yahoo Finance, 2018). This evaluation expresses that the stock price of Harvey Norman limited has been affected by industry as well as few internal changes.

Further, the gain and losses have been evaluated in 7 weeks of the portfolios and it has been evaluated that the investor has gained the profit, stock price of both the comapny has been enhanced and thus the total profit of the portfolio is $ 156.  

CLOSING SHARE PRICE

NO. OF

PRICE OF

TOTAL

COMPANY NAME

Friday 8  2017

 SHARES

 SHARES

 INVESTMENT

1

Woolworths Limited

292

26.91

7857.72

2

Harvey Norman Limited

510

4.2

2142

TOTAL INVESTMENT

10000

CLOSING SHARE PRICE

NO. OF

PRICE OF

TOTAL

COMPANY NAME

Friday 19  2018

 SHARES

 SHARES

 INVESTMENT

1

Woolworths Limited

292

27.08

7907.36

2

Harvey Norman Limited

510

4.41

2249.1

TOTAL INVESTMENT

10156

Through the evaluation and the tracking on both the stock, it is recommended to the investor to hold the stock as the future trend of both the stock explains about great increment in the stock price. The changes into the stock price also make an impact on AORD which explains that the stock position of the companies would be better. Though, the stock position of HVN is way better than WOW. To conclude, if the 100 Woolworths stock would be sold by the company and the amount would be invested into the HVN stock than the profitability level of the portfolio would be increment.

CLOSING SHARE PRICE

NO. OF

PRICE OF

TOTAL

COMPANY NAME

Friday 19  2018

 SHARES

 SHARES

 INVESTMENT

1

Woolworths Limited

192

27.08

5199.36

2

Harvey Norman Limited

1124

4.41

4956.84

TOTAL INVESTMENT

10156

Part 3:

Identification of key financial data:

Company 1

Company 2

Wollworths Limited

Harvey Norman Limited

Revenue / Sales

55668600000

784328000

Interest Expense

193600000

676000

EBIT

2081800000

9201000

Net Profit Before Tax

2132400000

8525000

Net Profit After Tax

1533500000

5979000

Current Assets

6994200000

149970000

Total Assets

22915800000

212652000

Current Liabilities

8824200000

150454000

Total Liabilities

13389800000

150613000

Total Equity

9526000000

62039000

Profitability ratio:

Profitability ratios includes calculation of return on equity, return on assets and profit margin. In case of Woolworths limited, Return on equity, return on asset and profit margin, all the three ratios express about the better performance and increased profitability level of the company. Following is the calculations of profitability ratios of last years:

Profitability

Rqturn on equity

Net profit/revenues

2.75%

-2.12%

3.53%

4.02%

3.85%

Return on assets

Net profit/Equity

16.10%

-14.58%

19.81%

23.91%

25.03%

Profit margin

Net profit / Sales

2.75%

-2.12%

3.53%

4.02%

3.85%

 In case of Harvey Norman Limited, all the three ratios express about the better performance and increased profitability level of the company. Following is the calculations of profitability ratios of last years 

Profitability

Rqturn on equity

Net profit/revenues

0.76%

-1.12%

0.76%

0.55%

0.92%

Return on assets

Net profit/Equity

9.64%

-14.05%

8.15%

5.87%

8.03%

Profit margin

Net profit / Sales

0.76%

-1.12%

0.76%

0.55%

0.92%

It explains that the profitability position of Woolworths limited is way better than the Harvey Norman Limited. So, Woolworths limited is a better option for the invetsors in context with investing the amount.

Salary of CEO

Stability ratios includes calculation of Debt to equity ratios and gearing ratios. In case of Woolworths limited, Debt to equity position of the company has been lowered and same as happened with gearing ratios. Following is the calculations of stability ratios of last years:

Stability

Debt to equity ratio

Net debt/ shareholder’s equity

0.32

0.51

0.44

0.42

0.49

Gearing ratio

Net debt/ (net debt+ shareholder’s equity)

               0.24

               0.34

               0.30

               0.30

               0.33

(Morningstar, 2018) 

Further, in case of Harvey Norman limited, Debt to equity position of the company has been lowered and same as happened with gearing ratios. Following is the calculations of stability ratios of last years

Stability

Debt to equity ratio

Net debt/ shareholder’s equity

0.24

0.35

0.27

0.22

0.18

Gearing ratio

Net debt/ (net debt+ shareholder’s equity)

             0.19

             0.26

             0.21

             0.18

             0.15

(Yahoo Finance, 2018)

It explains that the stability position of Woolworths limited is way better than the Harvey Norman Limited. So, Woolworths limited is a better option for the investors in context with investing the amount. 

Liquidity ratios includes calculation of cash ratios and capital intensity ratios. In case of Woolworths limited, cash position of the company has been lowered whereas capital intensity ratios have been enhanced. Following is the calculations of liquidity ratios of last years:

Liquidity

Cash ratio

cash equivalents + cash / current liabilities

0.793

0.826

0.836

0.949

0.907

Capital intensity ratio

Total assets /sales

               0.41

               0.40

               0.42

               0.40

               0.38

(Morningstar, 2018) 

Further, in case of Harvey Norman limited, cash position of the company has been enhanced whereas capital intensity ratios have been lowered. Following is the calculations of liquidity ratios of last years 

Liquidity

Cash ratio

cash equivalents + cash / current liabilities

0.997

0.974

1.054

1.078

1.107

Capital intensity ratio

Total assets /sales

             0.27

             0.30

             0.28

             0.30

             0.31

(Morningstar, 2018)

It explains that the liquidity position of Harvey Norman limited is way better than the Woolworths Limited. So, Harvey Norman limited is a better option for the investors in context with investing the amount.

Thus, through the above evaluation, it has been found that the Woolworths stock are way better in context with the investment than other stocks. To conclude, investor must invest into the stock of Woolworths limited.

References:

Annual Report, 2017. Harvey Norman Limited. (Online). Available from https://clients.weblink.com.au/news/pdf/01902066.pdf [Accessed 18 Feb 2018].

Annual Report, 2017. Woolworths limited. (Online). Available from https://www.woolworthsgroup.com.au/icms_docs/188795_annual-report-2017.pdf [Accessed 18 Feb 2018].

Fortune, 2018. Woolworths limited. (Online). Available from https://fortune.com/change-the-world/woolworths-holdings/ [Accessed 18 Feb 2018].

FT, 2018. Harvey Norman Limited. (Online). Available from https://markets.ft.com/data/equities/tearsheet/forecasts?s=HVN:ASX [Accessed 18 Feb 2018].

FT, 2018. Woolworths limited. (Online). Available from https://markets.ft.com/data/equities/tearsheet/forecasts?s=WOW:ASX [Accessed 18 Feb 2018].

Morningstar, 2018. Harvey Norman limited. (Online). Available from https://financials.morningstar.com/cash-flow/cf.html?t=HVN&region=gbr&culture=en-US&platform=sal [Accessed 18 Feb 2018].

Morningstar, 2018. Woolworths limited. (Online). Available from https://financials.morningstar.com/balance-sheet/bs.html?t=WOLWF&region=usa&culture=en-US [Accessed 18 Feb 2018].

SMH, 2018. Harvey Norman limited. (Online). Available from https://www.smh.com.au/business/markets/quotes/news/HVN/harvey-norman-holdings-limited [Accessed 18 Feb 2018].

SMH, 2018. Woolworths limited. (Online). Available from https://www.smh.com.au/business/markets/quotes/news/WOW/woolworths-group-limited [Accessed 18 Feb 2018].

Yahoo Finance, 2018. AORD. (Online). Available from https://au.finance.yahoo.com/quote/%5EAORD/history?p=^AORD [Accessed 18 Feb 2018].

Yahoo Finance, 2018. Harvey Norman limited. (Online). Available from https://au.finance.yahoo.com/quote/HVN.AX/history?p=HVN.AX [Accessed 18 Feb 2018].

Yahoo Finance, 2018. Woolworths limited. (Online). Available from https://au.finance.yahoo.com/quote/WOW.AX/history?period1=1510857000&period2=1516473000&interval=1d&filter=history&frequency=1d [Accessed 18 Feb 2018].

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
$0.00
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with Answers Market
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
Testimonials
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Finance
Thank you very much!! I should definitely pass my class now. I appreciate you!!
Customer 452591, June 18th, 2022
Education
Thank you so much, Reaserch writer. you are so helpfull. I appreciate all the hard works. See you.
Customer 452701, February 12th, 2023
Accounting
Thank you for your help. I made a few minor adjustments to the paper but overall it was good.
Customer 452591, November 11th, 2021
Technology
Thank you for your work
Customer 452551, October 22nd, 2021
Psychology
Thank you. I will forward critique once I receive it.
Customer 452467, July 25th, 2020
Business Studies
Great paper thanks!
Customer 452543, January 23rd, 2023
Psychology
I requested a revision and it was returned in less than 24 hours. Great job!
Customer 452467, November 15th, 2020
Political science
Thank you!
Customer 452701, February 12th, 2023
Political science
I like the way it is organized, summarizes the main point, and compare the two articles. Thank you!
Customer 452701, February 12th, 2023
11,595
Customer reviews in total
96%
Current satisfaction rate
3 pages
Average paper length
37%
Customers referred by a friend
OUR GIFT TO YOU
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat