Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Analysis of the financial statements of three leading supermarkets in UK - Research Paper Example

Comments (0) Cite this document
The focus of this paper is to analyse the financial statements of three leading supermarkets in UK. The purpose of which is to evaluate the performance of the companies as well as understand the levers of management control implemented in each company. The primary goal in financial reporting is the dissemination of financial statements that accurately measure the profitability and financial condition of a company (Carreyrou & Maremont, 2000)…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER93.9% of users find it useful
Analysis of the financial statements of three leading supermarkets in UK
Read TextPreview

Extract of sample "Analysis of the financial statements of three leading supermarkets in UK"

Download file to see previous pages Reporting financial results in a transparent and straightforward fashion is a means to an end (Fridson & Alvarez, 2002). The financial performance of a company can be discerned by the different financial ratios in accounting that tries to evaluate the overall financial condition of a company.
The different financial ratios can be categorised into liquidity ratios, activity ratios, debt ratios and profitability ratios. Liquidity ratios measure the company's availability of cash to pay its obligations and debts. Activity ratios measure the ability of the company to convert non-cash assets into cash. Debt ratios measure the company's capability to repay long term obligations. Profitability ratios measures how the company controls its expenses and uses its assets in order to generate an acceptable rate of return.
Based on the financial statements and financial ratios calculated, Tesco is more liquid than Sainsbury and Morrison. The liquidity of the company is measured by the current assets ratio as well as the acid test ratio. An asset is liquid if can be readily converted to cash, while a liability is liquid if it must be repaid in the near future. The current assets ratio compares the assets that will turn into cash within the year to the liabilities that must be paid within the year. The acid test ratio is a more conservative liquidity measure where the numerator of the current ratio is reduced by the value of its inventory. (Higgins, 1995)
The trends of Tesco's liquidity ratios are increasing from 2007 to 2009. This means that the company has ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Analysis of the financial statements of three leading supermarkets in Research Paper”, n.d.)
Retrieved from
(Analysis of the Financial Statements of Three Leading Supermarkets in Research Paper)
“Analysis of the Financial Statements of Three Leading Supermarkets in Research Paper”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Analysis of the financial statements of three leading supermarkets in UK

Analysis of Financial Statements

... ID] [module and module number] Executive Summary This paper aims to analyse the financial ments of Coles Myer Limited and Woolworths Limited. From the analysis it has been found out that Coles-Myer's trends as regards its sales, costs, and profits figures are fluctuating. On the other hand, Woolworths' figures show an increasing trend over the course of 2004-2007. These companies have provided their owners with adequate returns, with Coles-Myers' ROE playing around 15-19% within the period, while Woolworths's ROE in 2005 is 37%, 32% in 2006 and 27% in 2007. These high ROE figures are effect of financial leverage that are employed by both companies: both companies utilize debt in more than 50% of their financing. Although this high level...
27 Pages(6750 words)Research Paper

Analysis of Financial Statements

...Panorama Inc. is a company looking for advice in order to determine the best of action as far as finding a suitable partner for a joint venture. The company needs to make this decision based on the analysis of the financial statements of the company. The financial analysis that is going to be performed is called ratio analysis. Ratio analysis is a great a analytical tool because it provides a good basis for comparison, while at the same time providing numbers that analyze different facets of a business. The first step in the financial analysis simulation is to determine the best ratio analysis suite. The suite that I choose for the ratio analysis was the Wagner suite. The reason I choose this suite was based on the fact that the suite...
2 Pages(500 words)Essay

Financial statements ratio analysis

...FINANCIAL MENTS RATIO ANALYSIS ID Table of Contents Purpose of ratios----------------------------------------------------------------------------3 2. Calculation of ratios------------------------------------------------------------------------4 3. Information and analysis------------------------------------------------------------------5 4. Comparison---------------------------------------------------------------------------------6 5. Recommendations-------------------------------------------------------------------------6 6. Conclusion----------------------------------------------------------------------------------7 7. Report marking guide general------------------------------------------------------------8 1. Purpose of each ratio...
4 Pages(1000 words)Essay

Financial Statements analysis

...Financial ments Analysis: Compass Group plc By (Student name) Course: Tutor: University: Department: Date: 25 May 2014 Introduction to the Company Compass Group Plc was formerly known as Factory Canteen Ltd in England when it was started in 1941. With the establishment of business in the USA in 1994 by acquiring Canteen Corporation, the company came to be known as Compass Group Plc (CompassGroup, 2012). Compass is the leading foodservice company in the world with operations in about fifty countries. The company employs vending machines as their vehicle for delivery of their range of food and beverages and also acts as corporate caterers representing...
7 Pages(1750 words)Essay

Financial Statements Analysis

...Financial ment Analysis of the Financial ment Analysis Financial ment of a company comprises of three major documents. They are income statement, balance sheet and cash flow statements. The information of these documents is used to calculate financial ratios. Financial ratios illustrate company’s financial health and show its position in the business landscape. Financial ratios are tools that help to interpret a company’s financial planning, and its performance during the existence of the business. It allows the company to compare own activities with respect to previous years as well as among other companies. Financial ratios enable to understand operating performance and financial condition of the company through profitability...
4 Pages(1000 words)Research Paper

Law of Financial Services

For instance, the European Commission’s Regulation No. 1049/2001 which very specifically details rules and regulations governing the public access to European Parliament, Council and Commission documents. Article 8 of the regulation states that “personal data shall only be transferred to recipients … (b) if the recipient establishes the necessity of having the data transferred …” (Regulation 1049/2001). Although this law is not at all related to the data protection of banks and their customers, it does give us an impression of how serious the EC is in protecting the integrity of data.
In saying that the laws that we have on data protection have adequately addressed the needs of banks and custom...
6 Pages(1500 words)Article

Analysis of the Methods of 3 Research Papers about Child Abuse

Research ethics was maintained as the identity of the individuals participating was kept secret. As far as the validity of the study was concerned, the researchers attempted to use content validity in order to get an accurate response. The content validity focused on measuring off the ethnicities and gender percentages within the area and attempting to get a random sample of individuals via the phone. Their approach to random calling allowed for a significant random sample in the study. There were a few issues, however, with this type of approach. Those answering the phone sometimes were not always the desired individual, and not all of the desired people were surveyed. Different replacements did have to be used, and the attempt w...
6 Pages(1500 words)Literature review

Comparison of Leading Womens Role in Portrait of Teresa and Salt of Sea

... of Cuban society. The film story tells that Teresa lives in a noisy plaza facing serious financial problems. She has to take care of three children and have to work to gain livelihood for the family. In order to meet her financial needs, Teresa got engaged in two different types of jobs. She works in the garment factory in day timings whereas at night she works with an amateur night group. Meanwhile, she has a major difficulty to face in form of her husband who uses to remain angry, mistrusting and jealous due to long hour work engagement and outdoor activities of Teresa. On the other hand, in the movie Salt of the earth Esperanza is presented as the wife of mine worker. Her husband organized the protest and strikes against...
7 Pages(1750 words)Case Study

Airbus A 380: SWOT and Porters Five Forces Analysis

... been laid out below. The aim is to provide a longer term perspective to the development of the A 380 aircraft. THE WIDER ECONOMY With the ongoing economic slowdown, Airbus can expect some of its customers to defer deliveries of aircraft that were ordered prior to the recession. Further, with the cost of fuel going up and expected to remain at higher levels, people’s inclination to travel might be dampened leading to further demand depression. Considering the fact that the Airbus A 380 is primarily a long haul aircraft which is suitable for trans-continental travel, the demand for these aircraft would be from the airlines that have a capacity for long haul and long distance flights. Added to this is the fact that there need...
6 Pages(1500 words)Case Study

Economic Analysis on BMW Cars in the US Car Industry

Mini and the 1-series rapidly grew at a much higher rate through 2008. Since the early days of the new millennium, BMW has been one of the first automakers to utilize flexible factories in which more than one vehicle model could be produced at the same time. This enabled the company to meet shifts in market demand more effectively than BMW’s competitors could. BMW challenges to retain its market position in the international market for luxury cars. Many automakers, such as Hyundai with its Genesis sedan or Nissan's Infiniti brand are increasingly successful in realizing higher margins earned on luxury vehicles. BMW is rated behind luxury brands such as Lexus, Porsche, Mercedes, and Infiniti for these reasons

1. Th...
7 Pages(1750 words)Case Study

UK Employment Policy

Analysts explain that this situation is not simply because citizens don’t want to exercise this fundamental right, but largely because of the continued failure of the governments to institute an effective implementation of employment policies put in place (Howell, 2005). It has clearly been demonstrated by Mathew (2006) that the United Kingdom government has shown a lot of unwillingness in tackling the reported unemployment crisis.

Available research findings reveal that there are high unemployment rates among UK born ethnic minorities which show great diversities. According to a 2001 report, it is shown that unemployment rates amongst UK born men and women from black, Bangladeshi and Pakistani ethnic groups were...
9 Pages(2250 words)Case Study

Analysis of Articles about Climate Change

Can we imagine an Earth where there are no green mountains, no deep blue seas, and no living creatures? No. But a disaster of such magnitude and dimension is looming over Earth. Humans have identified this threat, defined it and given it a name, global warming. 

It was in the 1990s that the world began to hear serious warnings on global warming and climate change. The summary for policymakers prepared as part of the first assessment report by the Intergovernmental Panel on Climate Change was the first-ever in-depth study on this topic (Houghton, Jenkins and Ephirams, 1990). This report explored climate change and stumbled upon revolutionary revelations. This study announced in very clear terms that there is a natur...
6 Pages(1500 words)Literature review

Analysis of Employement Law Cases

For instance, Section 82(1) of the Sex Discrimination Act 1975 provides statutory protection to workers who are working under a contract personally to execute any work or labor. It also covers self-employed people2.

Other statutes, such as the Working Time Regulations 19983 and the National Minimum Wages Act 19984, are appliable to workers, in addition to employees5. Hence, all these rights and protections are available to Fred, even if he were to be deemed a self-employed person.

Some of the more important rights bestowed upon employees by the employment law are the right to claim wrongful or unfair dismissal and payment for redundancy. Other legislation, such as the health and safety statute and the insolve...
7 Pages(1750 words)Case Study

Analysis of the Oil Industry

In 2001 alone, the US reported earning from the industry close to two hundred billion US dollars. According to a previous study, the middle east tops the list as the largest exporters of crude oil taking over sixty-six percent of the global production of oil. Europe is the least producers of oil taking only two percent of the market share (Green, 4).
According to the American Association of Petroleum Geologists, the major problem facing the industry is lack of workforce and the increase in demand for oil. The report indicated that by 2030, the world’s oil demand is expected to increase from one hundred and three to one hundred and thirty million barrels per day. Natural gas, on the other hand, will expectedly increase t...
7 Pages(1750 words)Coursework

CNN Inernal and External Analysis

There are quite a few news channels serving the American news-hungry people. When it is not reading the news, CNN offers critiques and insights into news items
Coming to brass tacks, CNN was the first US Cable Channel which offers 24 hours round the clock news. “It operates one of the top 24-hour news channels, reaching more than 100 million US homes. In addition to its flagship channel, the company offers HLN (formerly CNN Headline News), and it has an international division that keeps viewers informed in about 200 other countries.” (Cable news network Inc: Company description, 2010).

Perhaps one of the most conspicuous aspects of CNN is that it has an excellent contact network and reporters on the spo...
8 Pages(2000 words)Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Analysis of the financial statements of three leading supermarkets in UK for FREE!

Contact Us