This managerial finance report delves into the financial analysis of two companies, Marks and Spencer and Next Plc, utilizing ratio analysis and investment appraisal techniques. The report begins by calculating and comparing various financial ratios, including current ratio, quick ratio, net profit margin, and return on capital employed, to assess each company's liquidity, profitability, and efficiency. The analysis reveals that Next Plc demonstrates superior financial performance across multiple metrics, leading to recommendations for Marks and Spencer to improve its financial position, such as limiting expenses and increasing marketing investments. The report also discusses the limitations of relying solely on financial ratios for company performance interpretation, such as the use of past data and the exclusion of economic changes. Furthermore, the report explores investment appraisal techniques, providing insights into evaluating different investment alternatives and their implications for long-term financial planning.
![[object Object]](/_next/static/media/star-bottom.7253800d.svg)
