3.10 Identify two listed companies operating in the same business sector (for example, Sainsbury’s and one of its competitors such as Tesco or Morrison). From the annual reports of the companies, extract the revenue and profit information for the accounting year and the comparative information for the previous year.

Calculate profit margins, and the year-on-year changes in the figures and compare the two companies.

Where there are differences between the businesses, use the other information in the annual report to see if you can identify the reasons for the differences.