There a several techniques that can be used to evaluate the performance of a firm, but one of the most popular and effective techniques is the use of ratio analysis. Ratio analysis is relative simple to apply for any person if they know the formulas for the different financial ratios. The use of ratio analysis does have its limitations because it does not consider other qualitative factors that may affect the financial results of a company such as a pending lawsuit. This report is going to compare two public companies based in the United Kingdom. Ratio analysis is going to be the primary tool to compare the financial results of both companies. The two companies that are going to be compared are GlaxoSmithKline Plc and J Sainbury Plc. An inherent limitation of the use of ratio analysis to compare the results of these two companies is that the two companies participate in different industries. Different industries on many occasions have different expectations and industry standards, thus a ratio that might seem bad for a company might actually be good in comparison with the results of similar companies that participate in the same industry. Company Profile: GlaxoSmithKline Plc GlaxoSmithKline is a multinational organization dedicated to manufacturing pharmaceutical and healthcare products. The company’s headquarters is in the United Kingdom, but the firm has offices in over 100 countries across the world including major research centers in the United Kingdom, United States, Belgium, and China (Gsk). The firm is dedicated to helping the healthcare industry evidenced by the fact that the company is one of the few firms in the world that currently is developing both medicines and vaccines to battle the three diseases that the World Health Organization considers a top priority. These diseases are HIV/Aids, tuberculosis, and malaria. The scope of the medicines manufactured and developed by the company includes targeting treatment for diseases such as cancer. The company also develops medicines for diseases such as asthma, mental disorders, and cardiovascular conditions. The firm also makes a lot of money by selling a lot of branded over the counter drugs, skincare, nutritional drinks and hygiene products. Some of the leading brand products the firm manufactures include Sensodyne, Nicorette, and Panadol. The current value of the company’s common stock is $43.98 and the market capitalization of the company is $111.6 billion dollars (Yahoo). The firm is traded under the symbol GSK. During the past 52 weeks the lowest the price the common stock was traded is $34.85 and the highest price was $42.42. Company Profile: J Sainsbury Plc J Sainsbury Plc was founded in 1869. The company is located in the United Kingdom. The company operates one of the largest supermarket chains in the United Kingdom. The firm has 557 supermarkets, 337 convenience stores, a bank, and two property joint ventures (Sainsbury). The company’s market share in the UK supermarket industry is 16% evidenced by the fact the company serves 16 million customers weekly. Sainsbury is a very innovative company. One of its most innovative services is its online shopping service that is available to 93% of the UK households. The organization has over 150,000 employees. The common stock of the firm is traded in the open market under the symbol SBRY. The current market price of the common stock of Sainsbury is $312.40 and the market capitalization of the firm is $5.83 billion (Yahoo). During the past 52 weeks the lowest the SBRY common stocks have traded at was $307.20 and the highest p
In order to compare two public companies a financial analyst must evaluate the financial results of each firm. There are thousands of companies listed in the London Stock Exchange…
The demand for construction of new trailers has been consistently rising through the five years to 2011, although demand for repair remained consistent throughout the same period. As a result, the company decided to raise its production level, however its policies and practices remained the same.
Games Workshop Group Plc.. Return on Equity (ROE) Return on equity is a profitability measure which indicates how much profit the company has generates on the capital invested by the shareholders. It can be computed as net profit to shareholders’ equity.
Global recession during 2007 to 2009 has substantial impact on the overall retail industry across the world. The external environment determines the outlook of industry and hence it is very important to analyze the external environment in order to formulate appropriate strategy for the organization.
This report consists of brief summary of strategic planning process adopted by the organization with emphasis on the environmental analysis. One of the primary requirement of any strategic planning process is a detailed environmental analysis of business environment (Farjoun, 2002).
ine which corporation is a better investment is by applying financial models and techniques that allow for a systematic evaluation of the financial results of a company. There a several techniques that can be used to evaluate the performance of a firm, but one of the most
However, recently a number of countries have adopted standardized accounting standards developed by International Accounting Standards Board (IASB). The acceptance of a common framework helps the companies in consolidating their accounting information with other branches of
This is a common practice in the oil and gas industry to reduce business risks (KPMG, 2008).
The financial reports of the company have been framed based on the IFRS (International Financial Reporting Standards) adopted by the European Union and prepared in accordance
The role of the shareholders is to appoint the auditors and directors and satisfy themselves that a proper structure of governance is underway. The board of director sets the strategic aims of the company, offering leadership, supervises the business
e retail group 2014) The various analysis methods used to form the final opinion on the market position and competitive edge of the company are the SWOT analysis, PASTEL analysis and Porter’s five principle forces model.
Home Retail group plc is a leading retailer of home and
9 pages (2250 words)Coursework
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