financial and competitive analysis of company .

Topics: Financial ratios, Financial ratio, Revenue Pages: 7 (3836 words) Published: October 25, 2014

Part 3 :Results ,analysis, conclusions and recommendation A description of result I have obtained during the research project. Sales Revenue Growth:

Source: Appendix 1
MW Morrison has (2.40%) Sales Revenue Growth in 2014 .Which is worse than last year 2.56% in 2013 and 7.18% in 2012.In financial year 2013 MW Morrison has sales decline in market. Therefore the sales growth is negative in 2014.However this situation will be solved from economic rescission recovery. (Ruddick Graham,2013) wrote that Morrison suffered on 0.7pc decline in sales during the four weeks period .However Asda`s sales growth slowed by 0.9pc and Tesco sales growth rose by pc . (Thompson Susan ,2014) added that Morrison has a problem of laid bare in the latest industry data which showed the grocers market share and overall sales in decline as a lack of online presence left it trailing .The latest grocery share figures from Kantar World panel for the 12 weeks ending January 5 2014 ,showed the Morrison suffered the most among the major supermarket with its share dropping . In comparison Sainsbury has 2.77% sales growth in 2014 .Which is worse than last year 4.52% in 2013 and 5.64% in 2012.But Sainsbury has better sales growth than Morrison. Gross Profit Margin

Source Appendix:1MW Morrison has 6.07% gross profit margin in 2014 .Which is worse than last year 6.66% in 2013 and 6.89% in 2012. MW Morrison has sales decline in financial year 2014 due to high competition in market .However such situation will change accordance with company strategy in future . (Thompson Susan,2014) wrote that sales and profit at Morrison have fallen once more as the supermarket warned that its customers had yet to benefit from the improving economic picture .Britain’s fourth largest grocer delivered a worse than expected 1.6 percent decline in like for like sales in the six months to August 4 3013. In comparison Sainsbury has 5.79% gross profit margin in 2014 .Which is better than previous year 5.48% in 2013 and 5.43% in 2012 .However MW Morrison has better performance than Sainsbury. Return on Capital Employed

Source Appendix 1
MW Morrison has (1.20%) return on capital employed in 2014 .Which is worse than previous year 11.58% in 2013 and 12.88% in 2012.In 2013 financial year Morrison has large investment in store and online business expansion .Therefore ROCE is negative in 2014.But this kind of investment will increase ROCE in near future . (Trevor Strain ,2014) added that during the period opened a further 18 core stores ,one of which was replaced ,and 90 new Morrison M local convenience stores .We also refurbished a further 100 stores in cooperating fresh format concept. In comparison Sainsbury has 10.61% return on capital employed in 2014 .Which is better than last year 9.46% in 2013 and 9.80% in 2012 .Therefore Sainsbury has better performance than Morrison. Operating profit margin

Source Appendix 1
MW Morrison has operation profit of (0.54%) in 2014 which is lower than previous year 5.24% in 2013 and 5.51% in 2012 .In financial year Morrison`s sale was decline due to high competition in supermarket industry .However this kind of situation will change in near future when the company change their strategy to tackle the situation . (Aldrick Phillip ,2014) added that inflation fell to a near five year low in May as a price war between British and German supermarket delivered in windfall for shoppers .The customer price index dropped to1.5 percent .In May ,its lowest level since October 2009 ,from 1.8 percent in April according to the office for National Statistics .It was driven down by the first decline in food and non alcoholic drink prices in eight years as the likes of Tesco and Sainsbury cut price to complete with discounters Aldi and Lidl. In comparison Sainsbury has operating profit of 4.21% in 2014 .Which is better than last year of 3.78% in 2913 and 3.92% in 2012 .However Morrison has better performance in 2013 and 2012 than...
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