Financial Analysis of M&S and Sainsbury's (Retailers) Report

This report presents a detailed financial analysis of Marks & Spencer (M&S) and Sainsbury's, two major retailers. It examines their financial performance over the last three years, utilizing financial statements (income statement, balance sheet, and cash flow statement) obtained from their annual reports. The analysis includes the calculation and interpretation of 8 to 10 key financial ratios, covering aspects of efficiency, liquidity, solvency, investment, and profitability. The report compares the performance of both companies and provides a critical assessment of their strengths, weaknesses, and adaptability to the market. The methodology involves calculating ratios, presenting the formulas used (with references), and discussing the implications of the results. Appendices include the financial statements. The report aims to provide insights into the financial health and strategic positioning of the two retailers, concluding with a summary of findings and recommendations.

Scenario
As part of a short-term role at an investment company your team manager has asked
for you to look at two companies (potential ideas are listed below) and report back on
any potential for investment opportunities.
As you want to impress your manager, you are keen to provide a financial statement
analysis with broad coverage looking at the strengths and adaptability of each
company. This will include an evaluation of internal and external factors on the future
prospects for these companies. You intend to cover the most recent three years
published accounts for each company and also to compare performance against
each other and the sector(s) in general.
Select two companies : M& S and Sainsburys (Retailers) Obtain financial
statements (full Annual Reports) for these companies for the last three years.
Assessment
description:
A numerical analysis of the performance of one company from a
specific industry sector.
This involves collecting financial data in relation to the chosen
company, calculating financial ratios and providing a brief discussions
of findings. 1000 words
Your analysis should include:
 A financial analysis that covers the last three years;
 You should calculate 8 to 10 of the ratios that you intend to include in your
final report (covering aspects such as Efficiency, Liquidity, Solvency,
Investment & Profitability).
 You should show the formula used (referenced to source) and the workings
for all ratios calculated. Remember per ratio you will have 3 years.
 You should include a copy of your chosen companies statement of
comprehensive income ('income statement'), statement of financial position
('balance sheet') and statement of cash flows ('cash flow statement') in an
appendix to your assignment.
 Remember this is a business report, so it should include an introduction and
suitable conclusion. These are included in the word count, but appendices are
not. (An executive summary is not required).Your report should be 1,000
words in total (your response will be largely numerical and graphical)