Question 1 Requirements Prepare a business report, 6 pages long (+/- 10%), to the board of directors of Marks & Spencers Plc with tables and graphs that analyse the performance and financial position over at least 5 financial years and recommend actions that the board should take. Utilise search data about the subject company and its competitor(s) from university databases (FAME, MINTEL and Marketline Advantage) examined during seminars as well as the company financial reports and a range of other sources that you are to find for yourself. Organise the ratios into 4 categories (Profitability, Liquidity, Efficiency, and Gearing) and calculate horizontal and vertical analysis. Apart from the graphs, put all the ratios, tables, and analysis in appendices. Your 6-page business report must include in-depth critical discussion with appropriate academic references and graphs.

Marking guide

Financial analysis (using 4 categories of ratios and vertical and horizontal trend analysis)

M & S Competitor Graphs

Vertical trend analysis 1 mark 1 mark 1 mark

Horizontal trend analysis 1 mark 1 mark 1 mark

Profitability ratio analysis 1 mark 1 mark 1 mark

Liquidity ratio analysis 1 mark 1 mark 1 mark

Efficiency ratio analysis 1 mark 1 mark 1 mark

Gearing ratio analysis 1 mark 1 mark 1 mark

Presentation marks 2 marks

________ ________ ________

Total for analysis 6 marks 6 marks 8 marks 20 marks

Interpretation (1-2 marks per relevant point, with academic references)

Vertical analysis narrative 2 marks

Horizontal analysis narrative 2 marks

Profitability narrative 4 marks

Liquidity narrative 4 marks

Efficiency narrative 4 marks

Gearing narrative 4 marks

88

Hi There,

please let me know if you need more information.

Files are too big too upload in question.Please let me know if there is any other way to upload files for analysis.

My query is about liquidity and efficiancy.I am struggling to get figured]=s for both companies for liquidy and efficincy.

Thank you.

MARKS AND SPENCER GROUP P.L.C. Ratios 31/03/2018 01/04/2017 02/04/2016 28/03/2015 29/03/2014 30/03/2019 GBP 30/03/2013 GBP GBP GBP GBP GBP GBP PDF Original documents PDF PDF PDF PDF PDF PDF 12 months 12 months 12 months 12 months 12 months Cons. 12 months Cons. 12 months Cons. Cons Cons. Cons Cons. Unqualified IFRS Unqualified Unqualified Unqualified Unqualified IFRS Unqualified IFRS Unqualified IFRS IFRS IFRS IFRS Profitability ratios 3.16 2.26 5.59 14.19 18.75 21.44 22.52 Return on Shareholders Funds (%) 2.09 1.41 3.38 8.85 10.67 10.84 11.01 Return on Capital Employed (%) 1.35 1.02 2.33 6.41 7.76 7.54 7.67 Return on Total Assets (%) 0.82 0.62 1.66 4.63 5.82 5.63 5.63 Profit margin (%) 36.91 37.83 38.48 39.11 38.65 37.54 37.86 Gross margin (%) 1.04 1.04 1.06 1.16 1.21 1.21 1.24 Berry ratio (x) 1.56 1.46 2.38 5.53 6.80 6.74 7.54 EBIT margin (%) 8.27 9.39 8.61 12.38 11.87 11.29 12.03 EBITDA margin (%) Operational ratios 2.57 2.25 2.04 1.91 1.83 1.93 Net Assets Turnover (x) 1.96 04 2.17 2.03 1.81 1.71 1.64 1.63 1.65 Fixed Assets Turnover (x) 1.76 1.59 2.56 5.20 6.14 5.17 3.59 Interest Cover (x) 14.82 13.70 14.00 13.20 12.92 12.19 Stock Turnover (x) 13.07 87.50 93.93 97.18 91.15 83.36 81.31 92.58 Debtors Turnover (x) 4.17 3.89 3.76 4.00 4.38 4.49 3.94 Debtor Collection (days) 32.05 29.78 33.25 35.34 34.25 40.50 35.41 Creditors Payment (days) Structure ratios 0.67 0.72 0.73 0.69 0.69 0.58 0.57 Current ratio (x) 0.35 0.29 0.41 0.31 0.31 0.22 0.22 Liquidity ratio (x) 1.97 1.65 1.53 1.66 1.32 1.02 0.96 Shareholders liquidity ratio (x) 42.77 44.94 41.60 45.18 41.36 35.15 34.03 Solvency ratio (Asset based) (%) Solvency ratio (Liability based) (%) 74.73 81.61 71.25 82.42 70.54 54.20 51.59 4.90 3.94 4.43 4.30 4.43 4.65 Asset Cover (x) 4.26 69.84 65.02 81.75 68.88 84.50 114.30 126.79 Gearing (%) Per employee ratios 1,056 789 2.077 5,893 7,223 6,764 9.811 Profit per employee (unit) 129,559 126,425 125,054 127,253 124, 131 120.141 174,325 Turnover per employee (unit) 14.56 14.76 14.62 14.08 13.64 13.69 13.18 Salaries/Turnover 18,865 18,658 18.279 17,923 16.928 16,442 22,970 33,472 34.940 37,160 41,534 38,517 31,549 43,559 Average Remuneration per employee (unit) Shareholders Funds per employee (unit) Working Capital per employee (unit) -1,151 260 -1,174 -1,280 -555 -2,001 -1,688 78,264 77,753 89,317 91,930 93,120 89,757 127,988 Total Assets per employee (unit) JOHN LEWIS PLC Ratios 27/01/2018 28/01/2017 30/01/2016 31/01/2015 25/01/2014 26/01/2019 GBP 26/01/2013 GBP GBP GBP GBP GBP GBP Original documents PDF PDF PDF PDF PDF PDF PDF 12 months 12 months 12 months 12 months 12 months 12 months 12 months Cons. Unqualified IFRS Cons. Unqualified IFRS Cons. Unqualified IFRS Cons. Unqualified IFRS Cons. Unqualified IFRS Cons. Unqualified IFRS Cons. Unqualified IFRS Profitability ratios 4.43 4.44 21.95 13.97 13.24 7.08 10.41 Return on Shareholders Funds (%) 2.72 2.37 10.37 6.78 4.84 3.39 5.44 Return on Capital Employed (%) 1.83 1.63 7.17 4.64 3.30 2.28 3.69 Return on Total Assets (%) 1.12 1.00 4.50 2.96 1.99 1.40 2.34 Profit margin (%) 32.82 32.97 33.84 33.92 33.75 33.44 33.38 Gross margin (%) 1.07 1.08 1.23 1.18 1.15 1.16 1.18 Berry ratio (x) 2.20 2.43 6.45 5.42 4.61 4.67 5.31 EBIT margin (%) 6.18 6.71 10.73 9.29 8.30 8.09 8.82 EBITDA margin (%) Operational ratios 2.43 2.36 2.31 2.29 2.43 2.43 2.32 Net Assets Turnover (x) 2.35 2.24 2.15 2.08 2.07 2.06 2.06 Fixed Assets Turnover (x) 2.56 2.23 5.26 3.90 2.97 2.32 32 3.44 Interest Cover (x) 15.69 15.43 15.97 Stock Turnover (x) 15.68 16.71 16.30 16.47 138.48 120.76 147.88 159.82 169.30 163.84 171.02 Debtors Turnover (x) 2.64 3.02 2.47 2.28 2.16 2.23 2.13 Debtor Collection (days) 32.50 33.74 35.01 34.62 33.53 31.86 30.10 Creditors Payment (days Structure ratios 0.93 0.88 0.84 0.78 0.63 0.63 0.72 Current ratio (x) 0.62 0.54 0.52 0.47 0.32 0.32 0.43 Liquidity ratio (x) 1.60 1.15 0.90 0.94 0.58 0.92 1.09 Shareholders liquidity ratio (x) 41.42 36.74 32.67 33.22 24.93 32.25 35.45 Solvency ratio (Asset based) (%) Solvency ratio (Liability based) (%) 70.71 58.09 48.51 49.75 33.21 47.60 54.91 8.59 7.09 7.09 6.96 6.15 8.36 8.08 Asset Cover (x) 75.53 91.79 116.96 124.44 185.98 119.19 104.69 Gearing (%) Per employee ratios 1,382 1,213 5,123 3,180 2,099 1,456 2,418 Profit per employee (unit) 123,258 120,757 113,934 107,484 105,331 104,247 103,364 Turnover per employee (unit) 18.06 18.10 18.86 20.15 19.45 19.43 19.64 Salaries/Turnover 22,260 21,857 21,484 21,654 20,490 20,253 20,298 31,237 27,314 23,334 22,753 15,849 20.572 23,214 Average Remuneration per employee (unit) Shareholders Funds per employee (unit) Working Capital per employee (unit) -2,229 -2,335 -3,023 -2,665 -2.749 -2,067 -1,643 75,413 74.336 71,432 68,484 63,577 63,785 65,490 Total Assets per employee (unit) MARKS AND SPENCER GROUP P.L.C. Ratios 31/03/2018 01/04/2017 02/04/2016 28/03/2015 29/03/2014 30/03/2019 GBP 30/03/2013 GBP GBP GBP GBP GBP GBP PDF Original documents PDF PDF PDF PDF PDF PDF 12 months 12 months 12 months 12 months 12 months Cons. 12 months Cons. 12 months Cons. Cons Cons. Cons Cons. Unqualified IFRS Unqualified Unqualified Unqualified Unqualified IFRS Unqualified IFRS Unqualified IFRS IFRS IFRS IFRS Profitability ratios 3.16 2.26 5.59 14.19 18.75 21.44 22.52 Return on Shareholders Funds (%) 2.09 1.41 3.38 8.85 10.67 10.84 11.01 Return on Capital Employed (%) 1.35 1.02 2.33 6.41 7.76 7.54 7.67 Return on Total Assets (%) 0.82 0.62 1.66 4.63 5.82 5.63 5.63 Profit margin (%) 36.91 37.83 38.48 39.11 38.65 37.54 37.86 Gross margin (%) 1.04 1.04 1.06 1.16 1.21 1.21 1.24 Berry ratio (x) 1.56 1.46 2.38 5.53 6.80 6.74 7.54 EBIT margin (%) 8.27 9.39 8.61 12.38 11.87 11.29 12.03 EBITDA margin (%) Operational ratios 2.57 2.25 2.04 1.91 1.83 1.93 Net Assets Turnover (x) 1.96 04 2.17 2.03 1.81 1.71 1.64 1.63 1.65 Fixed Assets Turnover (x) 1.76 1.59 2.56 5.20 6.14 5.17 3.59 Interest Cover (x) 14.82 13.70 14.00 13.20 12.92 12.19 Stock Turnover (x) 13.07 87.50 93.93 97.18 91.15 83.36 81.31 92.58 Debtors Turnover (x) 4.17 3.89 3.76 4.00 4.38 4.49 3.94 Debtor Collection (days) 32.05 29.78 33.25 35.34 34.25 40.50 35.41 Creditors Payment (days) Structure ratios 0.67 0.72 0.73 0.69 0.69 0.58 0.57 Current ratio (x) 0.35 0.29 0.41 0.31 0.31 0.22 0.22 Liquidity ratio (x) 1.97 1.65 1.53 1.66 1.32 1.02 0.96 Shareholders liquidity ratio (x) 42.77 44.94 41.60 45.18 41.36 35.15 34.03 Solvency ratio (Asset based) (%) Solvency ratio (Liability based) (%) 74.73 81.61 71.25 82.42 70.54 54.20 51.59 4.90 3.94 4.43 4.30 4.43 4.65 Asset Cover (x) 4.26 69.84 65.02 81.75 68.88 84.50 114.30 126.79 Gearing (%) Per employee ratios 1,056 789 2.077 5,893 7,223 6,764 9.811 Profit per employee (unit) 129,559 126,425 125,054 127,253 124, 131 120.141 174,325 Turnover per employee (unit) 14.56 14.76 14.62 14.08 13.64 13.69 13.18 Salaries/Turnover 18,865 18,658 18.279 17,923 16.928 16,442 22,970 33,472 34.940 37,160 41,534 38,517 31,549 43,559 Average Remuneration per employee (unit) Shareholders Funds per employee (unit) Working Capital per employee (unit) -1,151 260 -1,174 -1,280 -555 -2,001 -1,688 78,264 77,753 89,317 91,930 93,120 89,757 127,988 Total Assets per employee (unit) JOHN LEWIS PLC Ratios 27/01/2018 28/01/2017 30/01/2016 31/01/2015 25/01/2014 26/01/2019 GBP 26/01/2013 GBP GBP GBP GBP GBP GBP Original documents PDF PDF PDF PDF PDF PDF PDF 12 months 12 months 12 months 12 months 12 months 12 months 12 months Cons. Unqualified IFRS Cons. Unqualified IFRS Cons. Unqualified IFRS Cons. Unqualified IFRS Cons. Unqualified IFRS Cons. Unqualified IFRS Cons. Unqualified IFRS Profitability ratios 4.43 4.44 21.95 13.97 13.24 7.08 10.41 Return on Shareholders Funds (%) 2.72 2.37 10.37 6.78 4.84 3.39 5.44 Return on Capital Employed (%) 1.83 1.63 7.17 4.64 3.30 2.28 3.69 Return on Total Assets (%) 1.12 1.00 4.50 2.96 1.99 1.40 2.34 Profit margin (%) 32.82 32.97 33.84 33.92 33.75 33.44 33.38 Gross margin (%) 1.07 1.08 1.23 1.18 1.15 1.16 1.18 Berry ratio (x) 2.20 2.43 6.45 5.42 4.61 4.67 5.31 EBIT margin (%) 6.18 6.71 10.73 9.29 8.30 8.09 8.82 EBITDA margin (%) Operational ratios 2.43 2.36 2.31 2.29 2.43 2.43 2.32 Net Assets Turnover (x) 2.35 2.24 2.15 2.08 2.07 2.06 2.06 Fixed Assets Turnover (x) 2.56 2.23 5.26 3.90 2.97 2.32 32 3.44 Interest Cover (x) 15.69 15.43 15.97 Stock Turnover (x) 15.68 16.71 16.30 16.47 138.48 120.76 147.88 159.82 169.30 163.84 171.02 Debtors Turnover (x) 2.64 3.02 2.47 2.28 2.16 2.23 2.13 Debtor Collection (days) 32.50 33.74 35.01 34.62 33.53 31.86 30.10 Creditors Payment (days Structure ratios 0.93 0.88 0.84 0.78 0.63 0.63 0.72 Current ratio (x) 0.62 0.54 0.52 0.47 0.32 0.32 0.43 Liquidity ratio (x) 1.60 1.15 0.90 0.94 0.58 0.92 1.09 Shareholders liquidity ratio (x) 41.42 36.74 32.67 33.22 24.93 32.25 35.45 Solvency ratio (Asset based) (%) Solvency ratio (Liability based) (%) 70.71 58.09 48.51 49.75 33.21 47.60 54.91 8.59 7.09 7.09 6.96 6.15 8.36 8.08 Asset Cover (x) 75.53 91.79 116.96 124.44 185.98 119.19 104.69 Gearing (%) Per employee ratios 1,382 1,213 5,123 3,180 2,099 1,456 2,418 Profit per employee (unit) 123,258 120,757 113,934 107,484 105,331 104,247 103,364 Turnover per employee (unit) 18.06 18.10 18.86 20.15 19.45 19.43 19.64 Salaries/Turnover 22,260 21,857 21,484 21,654 20,490 20,253 20,298 31,237 27,314 23,334 22,753 15,849 20.572 23,214 Average Remuneration per employee (unit) Shareholders Funds per employee (unit) Working Capital per employee (unit) -2,229 -2,335 -3,023 -2,665 -2.749 -2,067 -1,643 75,413 74.336 71,432 68,484 63,577 63,785 65,490 Total Assets per employee (unit)