preview

Morrison Essay

Decent Essays

Morrison
The capital gearing is slightly lower than the previous year, which means debt takes less percentage in total equity capital. In the new capital structure, with the huge decline of Debt and Equity ratio, more investment are needed in Morrison. This is the good news for private investors, the increase of ROE brings more profit the shareholders. In latest financial report, Morrison valuation offers substantial upside in their stock. But potential risk also rises, any decision It makes would direct affect the profit for shareholders. Investors should pay more attention to the daily business and financial situation in Morrison. In order to increase the revenue, Morrison revert to its core operations as it seeks to reconnect with old customers. For example, it has sold off its convenience store operations and scaled back investment in non-core areas such as online in favour of focusing on traditional, good value products that resonate well with its target customer base. Result in bottom line, Morrison has a huge increasing compare to Sainsbury 0.2%, which is more encouraging to …show more content…

But in D/E ratio, Sainsbury has less potential risk than Morrison.Also in a price-to-earnings (P/E) ratio, Sainsbury perform very well, the increase rate reach 13.9 first time and this indicates that there’s plenty of scope for an upward rerating. To boost the ROCE, Sainsbury purchase Home Retail and let Argos brand within its asset base should allow Sainsbury’s to tap into significant cross-selling opportunities. It intends on having Argos concessions within Sainsbury’s stores which should boost click and collect sales, while Sainsbury’s focus on a simplified pricing structure should also help to improve customer satisfaction and boost sales. As the result, Sainsbury's total sales during the Christmas period rose by 0.8pc, Mike Coupe, Sainsbury's chief executive, commented: "credible performance in a challenging

Get Access