This report provides a detailed analysis and evaluation of the financial position and potential regarding investment of two major companies in the UK, Tesco and Sainsbury. It includes calculations of various financial ratios for both companies, such as current ratio, net profit margin, gross profit margin, gearing ratio, PE ratio, EPS, return on capital employed, average stock turnover period, and dividend pay-out ratio. The report also discusses the limitations of relying on financial ratios for evaluating a company's finances.