Submitted by: Submitted by boogaloo
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Words: 11760
Pages: 48
Category: Business and Industry
Date Submitted: 09/01/2011 09:50 AM
Financial Statement Analysis of Shoprite Holdings Ltd
TABLE OF CONTENTS
1. INTRODUCTION 4
2. LITERATURE REVIEW 5
2.1 THE BALANCE SHEET 5
2.1.1 BALANCE SHEET FIGURES ANALYSIS 6
2.2 THE INCOME STATEMENT 7
2.2.1 INCOME STATEMENT FIGURES ANALYSIS 8
2.2.2 THE BALANCE SHEET NOTES 9
2.2.3 INCOME STATEMENT NOTES 10
2.3 SEGMENT REPORT 11
2.4 SHARE INFORMATION 13
2.5 OTHER INFORMATION 13
2.6 STATISTICS 14
3. CONCLUSION 15
4. REFERENCE 17
APPENDIX A 19
APPENDIX B 27
LIST OF FIGURES
Figure 1: Current Ratio 6
Figure 2: Quick Ratio 7
Figure 3: Accounts receivable/ Turnover 7
Figure 4: Debt/ Equity Ratio 8
Figure 5:Net profit margin 10
Figure 6: Return on Total Assets 10
Figure 7: Return on Equity 10
LIST OF TABLES
Table 1: Balance Sheet 5
Table 2: Income Statement 8
Table 3: Balance Sheet Notes 10
Table 4: Income Statement Notes 11
Table 5: Segment Reporting 12
Table 6: Share Information 13
Table 7: Other Information 13
Table 8: Statistics 14
Financial Statement Analysis
1 INTRODUCTION
1.1 Background of research
Shoprite a South African based retail and fast food company, currently operates out of more than 1000 stores in 17 African countries and also has operations in India. The company makes up to 70% of South African retail trade. Therefore it is regarded by many as the brand of choice in the South African market. The company was originally founded in 1979, what started out as a chain of supermarkets quickly gained valuable reputation and expanded by capitalizing on the opportunities in emerging markets.
The company is known for their attempts to keep retail prices of products as low as possible to accommodate lower income consumers. However the winning philosophy is mainly due to their outstanding service, as well as the variety of after-sale services.
Shoprite's operational strategy places the company brand at an advantage for further expansions, this is evident due to the fact the companies brand can be seen...