Q1. Comprehensive analysis of Coles Myer's Resource Profile (PERTH) Q2. Porter's 5 Forces Model for analyzing CML 's Operating Environment

Q1. Comprehensive analysis of CMLs Resource Profile (PERTH)

Financial resources (Financial Ratios& Du Point): For work analyse, CML has a decreasing trend on Profit borderline , ROA, and ROE. This implied CMLs ability to generate profit has fall. ROE has declined significantly collectable to 50% reduction on OPAT , but they were relatively lasting during 97-00. In 2001, the Asset Turnover rate has slightly lessen as a result of drop of coope balancen efficiency. EPS has also diminish from 99-01 due to weak demand, poor post-Christmas clearance sale and customers dissatisfaction. For the support analyse, the decrement of Equity Multiplier has shown CML is mainly using debt to pay its investments in the last fiver years. But as D/A, D/E and leverage ratios (Appdendix1) in 2001 were the lowest deep down the last five years, it has indicated the reliance on debt has decreased. The major pecuniary strength of CML is the relatively elevated interest coverage ratio, which has enabled the political party to have a good credit rating for high borrowing capacity. For Liquidity and Solvency analyse, the current ratio and agile ratio of the CML were increasing and above 1 in the past five years. Even though, this implied CML has sufficient cash flow in contact its short-term debt, the ratios were still considered to relatively low because of CML significant substance of current liabilities.



One of the financial weaknesses is the relatively low quick ratio, it indicates the tendency of building up excessive amount of inventories.

Physical resources: CML has preponderantly traded under many leading department stores with continuous learnedness of capital and take over, such as Franklins. It owns around 2000 stores in Australia and New Zealand to welcomeher with an e-commerce business. There is significant amount of extremely specialized fixed equipments in Tyres and Auto stores, which is hard...

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