Statistical highlights
Marks and Spencer is an international company having several stores in the United Kingdom. The Company deals with clothing and food products. For reporting purposes, revenue is divided into two segments, that is, revenue from UK and that from international markets. Vast amount of sales was generated from UK market than in other markets in the report. In 20, UK generated 89.7% of the revenue amounting to £8,733 million while the remaining 0.3% was generated from international markets. There has been no major change in the capital structure for the corporation over the two-year period. The table .0 shows summary of financial performance of Marks and Spencer for the two year period from 200 to 20.
From table .0, Mark and Spencer had a growth in performance in the two year period. Revenue increased from £9,536.6m in the financial year 200/2009 to £9,740.3m in 20/200.
Profit after tax for the group similarly increased by 4.5% from £523 in 200 to 598.60 in 20. Dividends and earnings per-share also improved in the two-year period. This growth indicates a good trend for the entity. A thorough review of the financial statements is analyzed in the coming sections.
Scope and objective of the study
The objective of this paper is to carry out a comprehensive financial analysis using ratios on the financial statements of Marks and Spencer and draw inferences on the financial status of the company. This analysis will cover two-year period from 200 to 20. At the end of the study, it will be possible to conclusively locate the financial position of the company in terms of profitability, liquidity and efficiency. Further, drawbacks of ratio analysis as a measure of performance will be discussed and concluded with an evaluation of accounting principles.
Introduction