Assignment Requirements:

Part A: Financial Analysis and Interpretation

1. Financial Statements Review:Using the provided financial data (2019-2024), extract key financial figures (revenue, profit, assets, liabilities, and equity). Compare Coles and Woolworths' financial performance over the six-year period.
2. Ratio Analysis:Compute and interpret the following financial ratios for both companies:
   • Profitability Ratios: Net profit margin, return on assets (ROA), return on equity (ROE)
   • Liquidity Ratios: Current ratio, quick ratio
   • Efficiency Ratios: Inventory turnover, asset turnover
   • Solvency Ratios: Debt-to-equity ratio
3. Trend and Benchmarking Analysis:Identify trends in financial performance and compare Coles and Woolworths against industry benchmarks (if available). Discuss any significant changes and their possible causes.

Part B: Costing and Pricing Analysis

4.Cost Structure Evaluation:Examine the cost structure of both companies. Identify major cost components and discuss the role of cost drivers in pricing strategies.

5.Cost Allocation:Discuss cost allocation methods used in supermarkets (e.g., activity-based costing vs. traditional costing). Propose an alternative approach to cost allocation that could enhance decision-making.

6.Pricing Decisions:Evaluate the impact of recent price hikes on profitability and customer perception. Using cost-volume-profit (CVP) analysis, assess how changes in pricing affect profit margins and customer retention.

Part C: Decision-Making and Business Planning

7.Relevant Cost Analysis:Using relevant cost principles, analyze a hypothetical outsourcing decision for Coles and Woolworths (e.g., outsourcing private label production vs. in-house production).

8.Special Order Decisions:Consider a scenario where Woolworths receives a bulk purchase request at a discounted price. Analyze whether they should accept the offer based on incremental costs and revenue.

9.Budgeting and Performance Management:Discuss the role of budgeting in strategic planning and control. How might budgetary control help these companies mitigate financial risks?

Part D: Sustainability and ESG Considerations

10.Sustainability Performance Analysis:Assess Coles and Woolworths' ESG (Environmental, Social, and Governance) disclosures. Identify strengths and weaknesses in their sustainability reports.

11.Reputational Risk Management:Based on the Roy Morgan report, analyze the impact of declining trust on financial performance. Propose strategies to rebuild consumer trust through sustainability and corporate responsibility initiatives.

12.Long-Term Value Creation:Discuss how integrating sustainability into financial decision-making can enhance long-term profitability and stakeholder value.

• Expected Report Format
  1. Title Page:
     • Report title
     • Student name and ID
     • Course name and code
     • Date of submission
  2. Executive Summary (300 words max):
     • Briefly outline the key findings and recommendations.
     • Provide a high-level summary of the financial analysis, strategic decision-making, and sustainability assessment.
  3. Table of Contents:
     • List all main sections and sub-sections with corresponding page numbers.
  4. Introduction:
     • Provide background information on Coles and Woolworths.
     • Explain the purpose and scope of the report.
     • Outline the structure of the report.
  5. Financial Analysis and Interpretation:
     • Review financial statements.
     • Conduct ratio analysis.
     • Perform trend and benchmarking analysis.
  6. Costing and Pricing Analysis:
     • Evaluate cost structures.
     • Discuss cost allocation methods.
     • Assess pricing decisions using cost-volume-profit (CVP) analysis.
  7. Decision-Making and Business Planning:
     • Analyze relevant cost considerations.
     • Evaluate special order decisions.
     • Discuss budgeting and performance management.
  8. Sustainability and ESG Considerations:
     • Assess sustainability performance and ESG disclosures.
     • Analyze reputational risk and trust management strategies.
     • Provide recommendations for long-term value creation.
  9. Conclusion and Recommendations:
     • Summarize key findings.
     • Provide actionable recommendations for the board.
  10. References:
  11. Use APA referencing style for all sources cited in the report.
  12. Appendices (if applicable):
  13. Include financial tables, graphs, and any supporting data.

• Expected Report Format 2000 words and APA format

The question is complete and nothing to add