This document provides an analysis of the performance, financial position, and investment potential of Tesco and Sainsbury in managerial finance. It includes calculations of financial ratios for both companies, such as current ratio, quick ratio, net profit margin, gross profit margin, gearing ratio, P/E ratio, EPS, ROCE, average stock turnover period, and dividend pay-out ratio. The analysis reveals that Sainsbury has a stronger liquidity position, while Tesco has higher profitability and dividend pay-outs. Recommendations are provided for both companies to improve their financial performance. The document also discusses the limitations of relying solely on financial ratios for analysis.