Shoprite Holdings Ltd

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...