Faculty of Economics, Management and Accountancy Title Select two companies that operate in the same sector and are listed on a stock exchange and undertake a three year analysis of its primary financial statements. You are to focus on the key performance measures, ratio analyses and explain any trends. You are also to assess the impact of marketing activity, or lack thereof, has had on the company’s financial performance. A final report is to be submitted with an overall assessment of the company’s financial performance highlighting the main findings from the analysis. MRK 2009 Financial Aspects of Marketing Tutor: Mr. Peter Calleya Year: II B.Com Date: 12th September 2014 Claudia Beck (497294M) Table of contents Introduction 4 Ratios 5 Trend Analysis 10 Marketing Analysis 12 Conclusion 13 Bibliography 14 Introduction Sainsbury and Morrisons are two companies …show more content…
In 2012 and 2013 Morrisons had a very good ROE this meant the company was using shareholders’ money efficiently. One could also mention that Morrisons’ ROE during 2012 and 2013 was better than Sainsbury’s. In 2014 Morrisons’ ROE turned to a negative one due to the substantial loss made by the company. This is a concerning situation especially when cash flow has also decreased by 5 million for the year. On the other hand, Sainsbury’s ROE has kept improving in the last three years and to date it is in a strong position. Trend Analysis A trend analysis is conducted to detect the general pattern of a relationship between factors. The line items shown in the following trend analysis are as applied to calculate the above ratios. Sainsbury Data 2012 2013 2014 £m Percent £m Percent £m Percent Inventory 938 100% 987 105.22% 1,005 107.14% Current assets 2,032 100% 1,901 93.55% 4,362 214.67% Current liabilities 3,136 100% 3,115 99.33% 6,765 215.72% Shareholders' equity 5,629 100% 5,734 101.87% 6,005