This report provides a comprehensive financial performance analysis of Tesco and Sainsbury, two major players in the retail sector. It begins by calculating and comparing key financial ratios such as gross profit ratio, net profit ratio, current ratio, quick ratio, accounts receivable turnover, accounts payable turnover, inventory turnover ratio, and debt-equity ratio for both companies over the years 2019 and 2020. The analysis interprets these ratios to assess the profitability, liquidity, efficiency, and gearing of each company, highlighting strengths and weaknesses. Furthermore, the report critically evaluates Kaplan and Norton’s Balanced Scorecard as a strategic management system, discussing its advantages and disadvantages, and formulates its application for Tesco, focusing on financial, internal process, customer relationship, and education & growth perspectives. Lastly, the report analyzes the benefits and challenges of adopting integrated reporting by Tesco, referencing the International Integrated Reporting framework. The study concludes by summarizing the key findings regarding the financial health and strategic positioning of Tesco and Sainsbury.
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