Article Writing Homework Help
Hi, need to submit a 3500 words paper on the topic Managing finance of the two companies the Tesco and the Sainsbury.
Hi, need to submit a 3500 words paper on the topic Managing finance of the two companies the Tesco and the Sainsbury. The intention of this study is financial statement analysis as one of the fundamental practices for investment and analysis of performance in order to present a fast method of evaluating the financial growth of the organization. The analysis and the evaluation of the financial ratios minimize the complications within the financial data in a simple and an arranged manner. The ratio analysis is much informative as it provides information’s, suggestions and recommendations to the shareholders. The study in this context deals with the analysis of the performance of the reputed companies namely the Tesco and Sainsbury.
The study is aimed at evaluating the ratios of two firms over the past year financial data of the annual report. It gives the investment suggestions and recommendations to the investors and the shareholders by including and considering the following:
•Profitability,
•Liquidity level,
•Efficiency level
•The stage of fund dependency
•Earning per share.
The Tesco brand first appeared five years later in 1924 when he bought a shipment of tea from a Mr T. E Stockwell and in 1932 Tesco became a private limited company. In 1995 Tesco took up Sainsbury’s as the UK’s largest supermarket. Bearing in mind how determined and competitive the ‘supermarket’ concept is this is fairly a success brand. Tesco’s favored evaluation of growth is ‘like for like’ development – sales development on shop floor room, which rejected increase from additional shop floor space in extended or latest stores.
Even by this limited measure sales grew 8.3% in every year, improving Tesco’s profits every year. In April 2009, Tesco declared profits of ?1.6bn for the fiscal year concluding on 28 February. ?4.4m profit per day which is 17.6% higher than the earlier year. As an evaluation Tesco made as much income as Sainsbury, Next and WH Smith jointly. Forecasters are at present forecasting that Tesco’s pre-tax profits for coming years will be exceeding by ?2bn mark, quadruple times that of Sainsbury. Comparisons between both the companies are much difficult as they both are good players in the supermarket trade in the state. “So, rather than doing the usual comparison of .the stores by their top food .deals and booze bargains .(which we do every week in our Frugal Food blog), today, I’m going to take a more original look at which store offers the best financial .deals. I’ll also compare their loyalty schemes, so you can see where your .spend at the supermarket will earn you .the most bang for your buck” (Wait 2010). Financial Analysis of Tesco and Sainsbury: The intention of this paper is to financially investigate and state a report of the two firms Tesco and Sainsbury. These two firms have the same industrial background and are both leading supermarkets among whom there are a very healthy and tough competition in order to capture the giant market share. “Sainsbury’s v Tesco: the rumble in the supermarket aisles” (Hall 2009). Both financial as well as non financial factors have played a very vital role in the market fluctuations which have affected both the firms. In order to present a financially investigative report, it is very important to present a report on the financial ratios of the firms.