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Ok so did a bit more research would this be why? Retained earnings is affected by any transaction that affects net income, so when net income is lower (or profit) does that mean due to the expenses there will be less profit? Thus less retained earnings?
 
Hey guys had a quick question I am evaluating Woolworths at the moment and notice something odd in the 2016 annual report consolidated profit and loss statement it says for revenue from the sale of goods and services that the number is upload_2017-4-15_12-22-46.png (this is for the year 2015) but now I move onto the 2015 annual report and the number is different it says 60,679.1. Why are they different? It's not just this figure its a lot of other stuff aswell.
 
RandomInvestor said:
Hey guys had a quick question I am evaluating Woolworths at the moment and notice something odd in the 2016 annual report consolidated profit and loss statement it says for revenue from the sale of goods and services that the number is View attachment 70728 (this is for the year 2015) but now I move onto the 2015 annual report and the number is different it says 60,679.1. Why are they different? It's not just this figure its a lot of other stuff aswell.
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Read the notes to that report.

Could be the figures in 2016 AR only include ongoing/continued operations. So it would exclude the Masters figures whereas last year's report's continued operations figured Masters is still an ongoing operation.
 
luutzu said:
Read the notes to that report.

Could be the figures in 2016 AR only include ongoing/continued operations. So it would exclude the Masters figures whereas last year's report's continued operations figured Masters is still an ongoing operation.
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Ah ok I had a feeling it had something to do with different time? Is this right?
 
RandomInvestor said:
Ah ok I had a feeling it had something to do with different time? Is this right?
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You mean 53 vs 52 trading weeks?

Maybe. Can't remember when they had a once every four year [?] 53 trading week. But possible.

Though I think the redefinition of "continuing operations" makes more sense.

1. They just sold off Masters, so it's more appropriate to measure sales without Masters last year with this year's [2016] being without Masters.

2. It doesn't look as bad. i.e. Sales for 2015 was $60,868.4M [2015 AR]; sales this year as reportd in 2016AR was $58,553.0M

If you can rejig 2015's sales figure to $59,271.4M... the decline in sales doesn't seem as bad.

Put it under "continuing operations" and you might get your bonuses :D
 
luutzu said:
You mean 53 vs 52 trading weeks?

Maybe. Can't remember when they had a once every four year [?] 53 trading week. But possible.

Though I think the redefinition of "continuing operations" makes more sense.

1. They just sold off Masters, so it's more appropriate to measure sales without Masters last year with this year's [2016] being without Masters.

2. It doesn't look as bad. i.e. Sales for 2015 was $60,868.4M [2015 AR]; sales this year as reportd in 2016AR was $58,553.0M

If you can rejig 2015's sales figure to $59,271.4M... the decline in sales doesn't seem as bad.

Put it under "continuing operations" and you might get your bonuses :D
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Ah ok cheers.
 
Hey guys I am having a question I am reading the 2014 annual report of Woolworths and some things are confusing me are these things the same?

upload_2017-4-20_11-43-13.png

upload_2017-4-20_11-43-32.png
I assume this one is different just because it includes assets but not sure if there are like hidden things if that makes sense. I believe its always supposed to be clearly stated.

upload_2017-4-20_11-44-22.png

Also there is this statement makes no sense to me " Dividends paid by Woolworths are used to repay the loan (after payment of a portion of the dividend to the employee to cover any tax liabilities)."

Ok so it first says "Dividends paid by Woolworths" so that means that Woolworths pays the dividend to the investor correct? But how does that make sense for them to repay the loan if they give the money to investors unless they are referring to money that they retain, but no mention of that here.

And this one here:

upload_2017-4-20_11-48-31.png

EDIT:

This one aswell:

Assets held for sale
Assets classified as held for sale
 
RandomInvestor said:
Hey guys I am having a question I am reading the 2014 annual report of Woolworths and some things are confusing me are these things the same?

View attachment 70757

View attachment 70758
I assume this one is different just because it includes assets but not sure if there are like hidden things if that makes sense. I believe its always supposed to be clearly stated.

View attachment 70759

Also there is this statement makes no sense to me " Dividends paid by Woolworths are used to repay the loan (after payment of a portion of the dividend to the employee to cover any tax liabilities)."

Ok so it first says "Dividends paid by Woolworths" so that means that Woolworths pays the dividend to the investor correct? But how does that make sense for them to repay the loan if they give the money to investors unless they are referring to money that they retain, but no mention of that here.

And this one here:

View attachment 70760

EDIT:

This one aswell:

Assets held for sale
Assets classified as held for sale
Click to expand...


They are quite literal. i.e. they mean what they sound like.

I haven't read the annual reports you got those from, but...

external borrowing mean outside lender, as opposed to perhaps borrowings from across division, or management or major shareholders. For companies that does not differentiate, borrowing tend to mean from outside third parties.

PPE I tend to define as PPE that's no longer needed; too worn out and so they flogged it off on eBay or something.

Assets held for sales are usually bigger ticket items they usually won't sell off but are now putting up for sale to get out of the business/division.

Tenants are renters; customers are shoppers. WOW has pubs and motels or property they also rented? Those are tenants.

Investments tend to mean short term, financial assets like stock market holdings or other financial securities. A business is them buying another business.
 
luutzu said:
They are quite literal. i.e. they mean what they sound like.

I haven't read the annual reports you got those from, but...

external borrowing mean outside lender, as opposed to perhaps borrowings from across division, or management or major shareholders. For companies that does not differentiate, borrowing tend to mean from outside third parties.

PPE I tend to define as PPE that's no longer needed; too worn out and so they flogged it off on eBay or something.

Assets held for sales are usually bigger ticket items they usually won't sell off but are now putting up for sale to get out of the business/division.

Tenants are renters; customers are shoppers. WOW has pubs and motels or property they also rented? Those are tenants.

Investments tend to mean short term, financial assets like stock market holdings or other financial securities. A business is them buying another business.
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ah ok thanks I get that external means outside but it just says " proceeds from borrowings" doesn't say external I assume it is external because you can't borrow from your self?
 
RandomInvestor said:
ah ok thanks I get that external means outside but it just says " proceeds from borrowings" doesn't say external I assume it is external because you can't borrow from your self?
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Most borrowings are external, but they can borrow from "related entities" or sugar daddies.
 
Hey guys I had a quick question just wanted to confirm something so I am reading Notes to the consolidated financial statements and it says "Basic earnings per share (cents per share) – Continuing operations" does continuing operations include subsidiaries? I'm guessing it does because it says consolidated above?
 
Hey guys I am analyzing a company atm called WAM Capital great company btw, anyways in their annual report it says Performance fee payable I get what it means "A performance is a payment made to a fund manager for generating positive returns" but is this saying that the customers in wam capital in total have paid this much? Otherwise if we look it from the company stand point its like they are paying someone to generate their returns not them doing it them selves, I am a bit confused.

Also another one under
Cash flow information

It says
"Fair value gains on financial assets" but reports a negative number does this mean they made a loss? Or is it cash outflow? But how is that a gain then?
 
RandomInvestor said:
Hey guys I am analyzing a company atm called WAM Capital great company btw, anyways in their annual report it says Performance fee payable I get what it means "A performance is a payment made to a fund manager for generating positive returns" but is this saying that the customers in wam capital in total have paid this much? Otherwise if we look it from the company stand point its like they are paying someone to generate their returns not them doing it them selves, I am a bit confused.

Also another one under
Cash flow information

It says
"Fair value gains on financial assets" but reports a negative number does this mean they made a loss? Or is it cash outflow? But how is that a gain then?
Click to expand...

"Fair value gain on financial assets" is basically them revaluing their assets to market value. This means that the assets that they can get market quotes for (or other valuations) went down in value during this period, given it's a negative number.

WAM are fund managers, so this is their bread and butter. That said, everyone has a bad spell, even those as good as WAM.
 
Klogg said:
"Fair value gain on financial assets" is basically them revaluing their assets to market value. This means that the assets that they can get market quotes for (or other valuations) went down in value during this period, given it's a negative number.

WAM are fund managers, so this is their bread and butter. That said, everyone has a bad spell, even those as good as WAM.
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Ah I see thanks man. Also one thing I still haven't figured out how come on one companies financial statement in their statement of comprehensive income for example it shows for example "Brokerage expense on share purchases" but on another annual report it doesn't?
 
Never mind turns out that I was looking at 2 different things lol. But I saw this on Woolworths, still curious though
 
RandomInvestor said:
Hey guys I am analyzing a company atm called WAM Capital great company btw, anyways in their annual report it says Performance fee payable I get what it means "A performance is a payment made to a fund manager for generating positive returns" but is this saying that the customers in wam capital in total have paid this much? Otherwise if we look it from the company stand point its like they are paying someone to generate their returns not them doing it them selves, I am a bit confused.

Also another one under
Cash flow information

It says
"Fair value gains on financial assets" but reports a negative number does this mean they made a loss? Or is it cash outflow? But how is that a gain then?
Click to expand...

Correct me if I am wrong, but my understanding of listed investment company like WAM is they basically buy and own stocks in other companies and assets. So an investor in WAM is basically buying a share in WAM's share on those other companies/assets.

You got to be careful when looking into these kind of company. Probably best to stay away from them as you're starting out. Once you're experienced and know enough, you'd probably stay away too unless you can be asked to study all the holdings their various trusts/sub holds.

To more or less accurately value these kind of company, you have to also look into each and every one of the holdings - i.e. you have to study all the companies and assets WAM holds. See if those are any good; see if WAM's take on their "market value" are reasonable... not that WAM would lie, but that the market price they take as each of those company's value may or may not be reasonable - you won't know until you've study each one of them.

So unless you can know, say, WAM's holdings in Woolworth is actually worth X... or you don't mind taking whatever the market value WOW at on WAM's report date as true value.

Since most of us don't have the time or the patience to look through these holdings.. I mean if we can or could, we'd go directly to them anyway right? So you're practically betting on the talent and ability of WAM's analysts and managers, which might or might not be good. If it's good then, is it still good now?
 
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