You should have used your knowledge of ratio analysis to assess the financial performance of the following 5 supermarkets;
- Tesco
- Morrisions
- Sainsburys
- B&M
- Marks and Spencer
For each company you will have found the information that you needed in the Income Statement and The Statement of Financial Position. Remember that these documents will typically be found in the annual reports that are published on the internet. You need to ensure you are using the correct full version of the accounts and not any summaries that they could produce.
The answers to the calculations are shown below, along with the formula you should have been using.
| 2015 | 2014 | |
| Tesco | -3.4% | 6.3% |
| Morrisons | 4.5% | 6.0% |
| Sainsburys | 5.1% | 5.7% |
| B&M | 34.6% | 34.0% |
| Marks and Spencer | 38.7% | 37.5% |
Gross Margin = (Gross Profit / Revenue) x 100
| 2015 | 2014 | |
| Tesco | -9.3% | 4.1% |
| Morrisons | -0.53% | -4.13 |
| Sainsburys | 0.34% | 4% |
| B&M | 8.1% | 7.6% |
| Marks and Spencer | 6.8% | 6.7% |
Net Margin = (Net Profit / Revenue) x 100
| 2015 | 2014 | |
| Tesco | 0.5 : 1 | 0.6 : 1 |
| Morrisons | 0.5 : 1 | 0.5 : 1 |
| Sainsburys | 0.7 : 1 | 0.64 : 1 |
| B&M | 1.5 : 1 | 0.32 : 1 |
| Marks and Spencer | 0.69 : 1 | 0.58 : 1 |
Current Assets : Current Liabilities
| 2015 | 2014 | |
| Tesco | 0.45 : 1 | 0.47 : 1 |
| Morrisons | ||
| Sainsburys | ||
| B&M | 0.82 : 1 | 0.09 : 1 |
| Marks and Spencer | 0.31 : 1 | 0.22 : 1 |
(Current Assets – Inventory) : Current Liabilities
| 2015 | 2014 | |
| Tesco | ||
| Morrisons | ||
| Sainsburys | ||
| B&M | ||
| Marks and Spencer |
Asset Turnover = Revenue / Net Assets
| 2015 | 2014 | |
| Tesco | ||
| Morrisons | ||
| Sainsburys | ||
| B&M | ||
| Marks and Spencer |
Payables / cost of sales x 365
| 2015 | 2014 | |
| Tesco | ||
| Morrisons | ||
| Sainsburys | ||
| B&M | ||
| Marks and Spencer |
Receivables / revenue x 365
Cost of Sales / Average Inventory Held