This paper circulates around the core theme of Analyse the performance, financial position and investment potential of both companies. You should use charts to compare performance of the two companies. together with its essential aspects. It has been reviewed and purchased by the majority of students thus, this paper is rated 4.8 out of 5 points by the students. In addition to this, the price of this paper commences from £ 99. To get this paper written from the scratch, order this assignment now. 100% confidential, 100% plagiarism-free.
Question 1: You work as an assistant to the Chief Financial Officer of Ross Hill Ltd, a large retailer. The CFO of Ross Hill Ltd is considering the purchase of shares in either of following two companies and has asked for your help in making such decision. (i) Tesco Plc. Tesco is one of the biggest private sector employer in the UK. The company has more than 360,000 employees worldwide. In the UK, Tesco stores range from small local Tesco Express sites to large Tesco Extras and superstores. Around 86% of sales are from the UK. Tesco operates in 12 countries outside the UK, including China, Japan and Turkey. This international expansion is part of Tesco’s expansion strategy to diversify and grow the business internationally. Further information about Tesco stores PLC can be found through their recent annual report from the link below: https://www.tescoplc.com/files/pdf/reports/ar15/download_annual_report.pdf (ii)- J Sainsbury Plc. Sainsbury’s was founded in 1869 and today operates over 1,200 supermarkets and convenience stores and employs around 161,000 colleagues. The company aim is to put customers at the heart of everything they do. The company has invested in stores, colleagues and our channels to deliver the best possible shopping experience. Further information about J Sainsbury PLC can be found through the recent annual report from the link below:You are required to: For your portfolio prepare a report for potential investors, which analyses the financial information for these two companies and recommends which company would be a more viable option to invest in. The report must include: 1.Calculation of 10 financial ratios as given bellow for two years (2014 and 2015) a) Current ratios b) Quick ratios c) Net Profit Margin d) Gross Profit margin e) Gearing ratios f) P/E Ratio g) Earnings per share h) Return on capital employed i) Average inventories turnover period j) Dividend pay-out ratio 2. Analyse the performance, financial position and investment potential of both companies. You should use charts to compare performance of the two companies. You will need to look at the audited financial statement and carry out further research to explain the performance of the company for two years. 3. Provide recommendations of how the financial performance of the poorly performing business can be improved. 4. Discuss the limitations of relying on financial ratios to interpret firm performance.
