This report provides an analysis of the financial ratios and performance of Tesco and Sainsbury. It includes calculations of current ratio, quick ratio, net profit margin, gross profit margin, gearing ratio, P/E ratio, earning per share, return on capital employed, average inventory turnover period, and dividend payout ratio. The report also discusses the financial position of both companies and the limitations of relying on financial ratios. It offers insights into the profitability, liquidity, and efficiency of Tesco and Sainsbury.