Wm Morrison Comparison

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Attention: Miss Saraswathi Turairas Introduction The objective of this report is to give an overall view on research and analysis to regards of two companies, Wm Morrison Supermarkets Plc and Tesco Plc that I have chosen for. In this report, I will be comparing two companies’ financial analysis based on their comprehensive income and balance sheet for one year; and also will be comparing their generating cash ability, cash management and financial adaptability based on statement of cash flows for the past two year and also determine whether the two companies have the ability to repay their debts to their creditors, generating into cash and going concern which related to finance. I will be comparing five types of financial ratios through statement of comprehensive income and balance sheet, as follows:  Return on equity  Dividend per share  Dividend yield  Earnings per share  Return on capital employed Executive Summary Background on Wm Morrison Supermarkets Plc Wm Morrison Supermarkets Plc was founded by William Morrison in 1899 in United Kingdom and also the fourth largest food retailer with more than 400 convenience stores from Bradford market stall. Their business is mainly on fresh food, fresh fruits and grocery with their unique technology procurement and quality. Nine million customers would pass through the stores to shop for their foods and grocery and 132,000 employees of Morrison would deliver great services to them such as ordered online they wants and delivered to their residential. Morrison helped consumers to save money every day by having some competitive prices and hundreds of special offers. Expanding convenience stores allows consumers to purchase their daily groceries when on their way home after work or af... ... middle of paper ... ...ate their EPS in accordance with international standard IAS33 . The results were shown that Wm Morrison Supermarkets’ earnings per share are 28 pence per share whereas Tesco’s earnings per share are 17 pence per share, hence, Wm Morrison Supermarkets’ earnings per share are highest than Tesco’s earnings per share. Return on capital employed Return on capital employed (ROCE) expresses a company’s profit and displayed as a percentage of the amount of capital invested in the company. ROCE interprets “capital employed” as the total amount of money invested in the company in the long term, regardless of whether that money has been supplied by shareholders or lenders. This amount will compared with the return achieved on that capital. The results were shown that Wm Morrison Supermarkets are higher than Tesco by 4.55 per cent. (Please refer to Table of Financial Ratios)

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