P/F/270. Analysis of financial performances of Marks and Spencer and Sainsbury's from the investment perspective

This paper performs analysis of financial performances of Marks and Spencer and Sainsbury's from the investment perspective in terms of financial risk and return. This is made by the means of financial ratios analysis, such as profitability ratios: ROE, ROCE; financial flexibility and financial risk measuring ratios: WCR, quick ratio; Total debt / Operating cash flow ratio. Financial risk from the long-term growth prospects was assesses by evaluating borrowing ratio, EPS, PE, SSGR and dividend per share. Finally, the market data: share price, beta ratio were analysed in order to conclude about the financial performances of the companies on the market. The paper makes a summary by highlighting the key points of the report and concludes about the better investment decision in favour of one of the companies.