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Profitability Ratio

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Profitability Ratio
Morrison vs Sainsbury 2011-2012 | Annual Report - Financial Analysis | 2011-2012 | | Subject : Financial Analysis For Managers | 11/19/2012 |

Course Leader: Prof. Richard West
Module Leader: Prof. Bijan Hesnib

Submitted By:

Riyank Mehta - 140550891
Jay Sanghvi - 140248921
Anirudh Thakor - 140994501
Jigar Ajmera - 140249021

1. Executive Summary

This report is a summary of the comparison of ratio analysis of two companies Morrisons Plc. and Sainsbury Plc. for the accounting period 2010-2011 and 2011-2012. It focuses basically on various ratios such as Profitability Ratio, Liquidity Ratio, Gearing Ratio, Efficiency Ratio and Investors Ratio.

This ratios will give us an overview of the companys financial performance of Morrison and Sainsbury and will even help us to compare both the companys performance for 2011 and 2012. This comparision is usually made by investors to choose companies for investing by looking into its financial structure and by comparing its profit margins, sales growth, operating margin, dividend paid and many other such ratio. |

Contents |

Page Number | 1. Executive Summary | 2 | 2. Introduction
2.1 Morrisons Plc.
2.2 Sainsbury Plc. |
4
44 | 3. Ratio Analysis3.1 Profitability Ratios3.2 Liquidity Ratios3.3 Efficiency Ratios3.4 Gearing Ratios3.5 Investors Ratios | 559101314 | 4. Conclusion &Recommendations | 18 | 5. Reference | 19 | 6. Appendix | 20 | | | | | | | Table of Contents
2 Introduction
2.1 Morrisons Company PLC.
Morrisons being UK’s 4th largest supermarket chain, has an annual turnover of more than £17 billion. It has more than 475 stores spread across UK. Morrisons has a 15.6% share in the UK’s grocery market and is one of Britain’s fastest growing supermarket chains. Amongst the large supermarkets, several features make Morrisons outstanding and differentiate it from competitors. Its ‘fresh approach’ and commitment to
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