question archive This question addresses the 2020 annual report for Woolworth's
This question addresses the 2020 annual report for Woolworth's
Subject:BusinessPrice: Bought3
This question addresses the 2020 annual report for Woolworth's. Please check online for the 2020 annual report
(a) From their 2020 annual report, infer their net distributions from their starting and ending book value of equity to common shareholders (i.e., to the parent entity) and their total comprehensive income to common shareholders. Note that they applied AASB 16, the equivalent of IFRS 16, which changed the accounting for leases. As a result, 1,329 of their drop in book value of equity was due to a one-time catch-up from the change in accounting principle.
After calculating their net distributions this way, compare your answer to the dividend payments on the cash flow statement. Are the numbers similar?
(b) Based on your calculated net distributions and the comprehensive income to common shareholders, what was Woolworth's payout ratio in 2020? Based on comprehensive income in 2019 and the information in the cash flow statement, what was Woolworth's payout ratio in 2019? Include payments and comprehensive income to common shareholders (parent entity) only.
(c) Compare the growth in their cash from customers to the growth in revenues. Explain the difference in these growth rates.
