obtain its financial statements | My Assignment Tutor

Assessment Task You are required to select two companies listed below and obtain its financial statements for last 3 years. i. Tesco ii. Sainsbury OR iii. Next plc iv. Debenhams plc Calculate the following Ratios for each of the 3 years, using formulae provided in the class. • Profitability, (Gross Profit margin, Operating Profit margin, Net Profit margin) • Liquidity (Current ratio and Quick/Acid test ratio) • Efficiency (Asset turnover, Receivables collection period, payables payment period, inventory turnover period) • Gearing Ratio (Interest cover, financial gearing and equity gearing) • All calculations and formulae used must be identified and these must be shown as an appendix Analyse the financial performance of the two companies based on your calculations, identifying and discussing the purposes of calculating those ratios and the weaknesses of ratios analysis. Your analysis must contain an introduction, a recommendation of how these areas can be improved in the future, and a conclusion detailing the results of your analysis. Assessment criteria: Explanatory comments on the assessment criteria Max marks for each section Calculations/ formulae Demonstration of calculations 3yrs x 2companies x 12 Ratios X 0.5mark=36, the ratio and formulae must be shown 36% Format, referencing, bibliography, use of tables/charts Structured analytical report with supporting referencing where required 20% Performance Analysis Relevance, Clear demonstration of understanding and applied in context 14 % Introduction, recommendation and conclusion Demonstration of clear understanding of the issues. 30 %


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