Group 17.docx - Principles of Business Accounting Assignment Group 17 Student name SID and his roles in the group coursework Gao Yuxuan \u2013 9470266

Group 17.docx - Principles of Business Accounting...

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Principles of Business Accounting Assignment Group 17 Student name, SID and his roles in the group coursework Gao Yuxuan – 9470266 Introduction, brief background of each company and limitation of the analysis Zhenghao Guo – 9571965 Vertical and horizontal analysis Huancheng Liu – 9057388 Evaluate each company with financial ratios Nguyen Gia Bao Viet – 9338036 Evaluate the financial performance and combine all task together Word count: 2214 Contents 1. Introduction and company background ................................................................. 1 Tesco .............................................................................................................................. 2 Sainsbury ........................................................................................................................ 2 2. Horizontal Analysis ................................................................................................... 3 3. Vertical Analysis ........................................................................................................ 4 Tesco .............................................................................................................................. 4 Sainsbury ........................................................................................................................ 5 4. Financial Ratio Analysis ........................................................................................... 6 Profitability ...................................................................................................................... 6 Liquidity .......................................................................................................................... 7 Efficiency ........................................................................................................................ 8 Gearing ........................................................................................................................... 8
Principles of Business Accounting Assignment Group 17 Investment .................................................................................................................... 10 5. Evaluate the financial performance of both companies ..................................... 11 6. Limitation of analysis ............................................................................................. 12 7. Conclusion ............................................................................................................... 12 Reference list ................................................................................................................. 12 Appendices ..................................................................................................................... 13 Horizontal and Vertical analysis of Tesco ................................................................ 13 Horizontal and Vertical analysis of Sainsbury ........................................................ 14 Ratio analysis ............................................................................................................. 14 1. Introduction and company background This report aim is to analyze and explain the financial reporting of Tesco plc and J Sainsbury plc, to get the right investment decision for the board of directors of Great Investment plc. Furthermore, the report also will try to make analyze both firm’s financial health by using vertical and horizontal analysis and ratios analysis. Finally, report will critically evaluate the performance of the companies and make investment recommendations as well as the limitation of our analysis. Tesco According to Tesco Annual report (2020) shows that the history of Tesco origin from 1924 the founder Jack Cohen established it, 5 years later the first shop was opened in north London. During this time, no anyone can predict the unremarkable shop will raise becoming one of the UK's biggest supermarkets. After several decades of development, Tesco business expands worldwide, including Europe, Asia, and their sales income arrived at £56.5bn. About Tesco, business fields
Principles of Business Accounting Assignment Group 17 consist of the supermarket, Tesco Bank, fuel stations, etc. besides that now Tesco is a public company, and the CEO is Ken Murphy. Finally, As the data from (Kantar Worldpanel,2020) shows that the market shares of Tesco between 2015-2020 always occupied 27%-29% and ranked No.1 in the retail market. Sainsbury Sainsbury was established in 1869 and its history is longer than Tesco. As well as Tesco, Sainsbury is a small business shop and after decades of development and expend, Sainsbury become a second-largest retailer in the United Kingdom, and the market share occupied 16%-15.7% between 2015-2016 (Kantar Worldpanel,2020). The Sainsbury Annual Report (2020) shows that the performance of group sales arrived at £32,394 million during 2020 and their brands including Argos, TU, Habitat. Besides, their connected services including Sainsbury’s bank, nectar, and Argos card. Finally, Sainsbury is a listing on the London Stock Exchange and a part of the FTSE 100 index, CEO is Mike Coupe.
Principles of Business Accounting Assignment Group 17 Graph 1:Market share of retail companies in the UK 2015-2020 2.

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