Financial Ratio Analysis of Morrison in Comparison with Tesco

However implementation of liquidity ratios illustrates that the ‘short-term debt-paying ability’ of the companies has improved with and without the inclusion of inventories (Jerry J et al, 2008, pg214). This is of particular interest to M&S who may require financial aid to finance the renovation of its stores. In terms of the current recession many investors may be worried to what effect the current recession will have on Tesco and M&S respectively.

The internal analysis of the company paints a picture of a firm that is well endowed with resources, both human and capital. The company boasts of an asset base of $11.4 billion according to the financial reports for the year 2012. This is huge, and it shows that the company is well grounded and has the capacity to gain a competitive edge in the highly competitive retail market in which it operates (Britton & Jorissen, 2007).

Tesco’s financial year represents the 52 weeks that ended 27 February 2007, which is prior to 53 weeks that ended 28 February 2009. In accordance with the International Financial Standards (FRS) were the consolidated financial statements prepared. The statements were also prepared in agreement with the Financial Reporting Interpretation Committee (IFRIC).

The relevance of evaluating both the financial performance as well as position of Tesco PLC cannot be overstated. This is more so the case given the need to determine the stability and viability of the company going forward. This text seeks to evaluate the financial performance as well as position of Tesco PLC by amongst other things analyzing the entity's financial statements. In this case, the evaluation will be based on the company's recently published annual accounts.

In this section, vital financial ratios of Target Corporation is computed to evaluate its financial performance. Also, it will explain how the principal of finance “Market price reflects information” is justified through the explanation of Target’s ratio analysis. (The evaluated ratios are compared with 2015 ratios to better understand the specific ratio’s although the company would publish its financial statement for 2015 in coming April).

Morrison’s business strategy is very much customer orientated. Morrison’s tries to please their customers to ensure that they are happy with the products and services within Morrison’s. Morrison’s effective customer complaint procedure illustrates that their customers are their main priority as complaints get handled promptly.

The analysis of a company's financial statements helps in the determination of both the weaknesses and strengths of the concerned entity. Further, such an analysis helps in the determination of the future viability of firms. There are a wide range of techniques utilized in the analysis of financial statements. In that regard, it is important to note that the relevance of a horizontal, vertical as well as ratio analysis of a company's financial statements cannot be overstated. This is more so the case when it comes to the interpretation of the various dollar amounts presented in both the balance sheet and the income statement. In this text, I carry out a horizontal, vertical as well as ratio analysis of both The Coca-Cola Company and PepsiCo, Inc. The analysis' results will be critical in the evaluation of each company's performance. Findings will be used as a basis for recommendations on how each company can improve its financial status.

Tesco operates in 14 different countries. Therefore its performance may be influenced by the local legislation and political factors. There are

This assignment will be discussing about when I was working as a logistics manager for Morrisons and we will be talking about how Morrisons distribution system works and evaluating the system. Morrisons' market share as of August 2013 was 11.3%, making it the smallest of the "Big Four" supermarkets, behind Tesco (30.1%), Sainsbury's (16.6%) and Asda (16.4%), but ahead of the fifth place Co-operative Group, which had a share of 4.4% - http://en.wikipedia.org/wiki/Morrisons. There is currently 569 stores across the UK and this means that the distribution system must be effective and be able to deliver goods to the Morrisons stores in time.

In conclusion, although Tesco still has a higher ROCE than that of Sainsbury’s, Sainsbury has improved its ratio better than Tesco. We may assume. If this trend continues, Sainsbury will continue increasing its Rate for the Return on Capital Employed, as it used to do, in the long run Sainsbury would be more profitable than Tesco.

This assignment will analyse and compare the financial performance between NEXT and DEBENHAMS by examining their latest Annual Reports. In order to conclude and comment on these two businesses, appropriate ratios will be calculated through the figures in their business financial statements and the information regarding their industry and market conditions in Annual Reports will also be analysed.

Debenhams plc is a general retailer which operates its business in the UK market and is also seeking to realise a further global market expansion. This report will mainly focus on the performance, financial position and the liquidity of Debenhams plc in 2014 and will compare with that of the previous year. A competitor in the same industry, Marks& Spencer, is chosen to make a comparison as well. The report in mainly focused on how Debenhams operated in the UK sector which includes sales from Debenhams stores in UK and online sales delivered to UK addresses. Debenhams faced challenges in 2014; the outcome for the first half was disappointing due to inappropriate sales target was set and the external factors such as market environment, as the whole retail industry has still influenced by the recession. Marks & Spencer is the competitor company which has been chosen to compare and measure Debenhams outcome in 2014.

As I have mentioned before, this research paper is being taken exclusively with the aim to evaluate the Tesco’s performance in both financial and business terms over a three years period. Since the financials will be compared with its three year

Ocado, as the world’s largest dedicated online grocery retailer and has been voted as the best online supermarket in the UK since its foundation in early 2000 by Tim Steiner, Jason Gissing and Jonathan Fairman. (Which?, 2014) With rapid expansion of the business, it develops and operates a unique business model which only focuses on customers’ online shopping and emphasises the partnership with Waitrose. There are a range of products offered in Ocado, not only for its own brand groceries from the Waitrose supermarket chain but also there has a selection of name brand groceries and other items, such as flowers, toys and magazines, a range of Carrefour 's products are sold via Ocado website as well. Ocado is aiming at improving the customers’ shopping experience and changing the way people shop for groceries. Aligning the interests of customers, investors and stakeholders to deliver a long term shareholder value, that is the strategic objective of Ocado Group plc. (Ocado, 2014) This report will undertake a detailed analysis using financial ratios from an evaluation of its profitability, financial position and cash flow to formulate an overall view of the company’s financial performance and position from its financial statements.

Firms and Companies include ‘Ratios’ in their external report to which it can be referred as ‘highlights’. Only with the help of ratios the financial statements are meaningful. It is therefore, not surprising that ratio analysis feature are prominently in the literature on financial management. According to Mcleary (1992) ratio means “an expression of a relationship between any two figures or groups of figures in the financial statements of an undertaking”.