COMPANY'S PERFORMANCE

Measuring Company's Performance in Periods 1 and 2

Measuring Company's Performance in Periods 1 and 2

Question 11

According to the data, a summary table of the vital financial data has been compared for both periods. The results of the computation can be found in the tables below;

Average Weekly Returns

 

ASX 200

WOW

Average Weekly Returns

-1.12%

-1.10%

Standard Deviation

0.105051789

0.105561407

Maximum Return

10.82%

13.74%

Minimum Return

-100.00%

-100.00%

Coefficient of Variation

-9.393148394

-9.607651863

Average Weekly Returns

 

ASX 200

WOW

Average Weekly Returns

-1.11%

-1.04%

Standard Deviation

0.102037165

0.101020731

Maximum Return

7.80%

5.76%

Minimum Return

-100.00%

-100.00%

Coefficient of Variation

-9.210460159

-9.748681484

The summary statistics mentioned in the above two tables assists us in developing appropriate insight on the performance of the subject Woolworth company against the market benchmark. In context of Woolworth Performance over the periods, the tables shows that average weekly returns of the WOW were better in period 1 than period 2. As shown in the tables, average weekly returns was 0.05% for the period 1 while it fell to negative 0.13% during the period 2. On the contrary, ASX 200 has performed better and its weekly average has improved from negative 0.2% to negative 0.1% which is quite good feat for the market. However, it still needs to recover.

Question 12

Summary Statistics for PERIOD 1

 

 

 

 

ASX

WBC

WOW

average weekly returns

-0.00201

0.00051

-0.00135

standard deviation

0.03684

0.05329

0.03812

maximum returns

0.10824

0.15842

0.13743

minimum returns

-0.11072

-0.18031

-0.10394

coefficient of variation

-18.28566

105.35792

-28.28716

Summary Statistics for PERIOD 2

 

 

 

 

ASX

WBC

WOW

average weekly returns

-0.00104

-0.00129

-0.00044

standard deviation

0.02700

0.03903

0.02261

maximum returns

0.07801

0.12367

0.05760

minimum returns

-0.11377

-0.09773

-0.08081

coefficient of variation

-25.99738

-30.32489

-51.04841

The performance of WOW as compared to WBC and the index is poor. It is not risky, which shows that the returns of the company will not be good enough. The average weekly returns of the company are also low as compared to WBC and the index. Overall, it can be said that the company is not performing good. The company should make sure that it matches the index in order to attract more investors. Providing them with a good return is a very good way of making people invest in the company (Brentani, 2004)

.

Question 13

In the given below, the correlation coefficient of WOW and ASX 200 has been mentioned;

Period 1: Correlation Coefficients

 

ASX 200

WOW

ASX 200

1.00000

 

WBC

0.59581

1.00000

Period 2: Correlation Coefficients

 

ASX 200

WOW

ASX 200

1.00000

 

WBC

0.64869

1.00000

From the above tables, it can be observed that the data presents that there is correlation among the returns that is there is correlation of Return S&P/ Asx200 Period 1 with the Return Woolworth company Period 1, Return S&P/ Asx200 Period 2 and Return Woolworth company Period 2. Moreover, the value of the Pearson correlation coefficient shows that the value of Pearson correlation coefficient is significant that is it is less than 0.5 which shows that the value is significant. In this context, the correlation is a statistical relationship between two or more random variables (or variables that you can with some degree of accuracy consider acceptable as such). At the same time changing the values of one or more of these quantities are accompanied by systematic changes in the values of one or several other variables (Bruckheimer & Steward, 2009). At the same time, the lack of correlation between two variables does not mean that between them there is no connection (Burke and Larry, 2010). Moreover, there is correlation in both the period that is in period 1, there is correlation of ...