Business Analysis Report

Abstract

The purpose of this report is to conduct a comparative appraisal of the financial performance of two companies. The analysis primarily focuses on trends and ratio analysis. A comparative study is undertaken utilising horizontal and vertical methods to examine historical data, in order to ascertain the most preferable investment option between Marks and Spencer (M&S) and its competitor Next, dependent upon their respective performances. This study utilises a combination of methods, with historical data serving as the main focus. Furthermore, historical data serves as a foundation for examining the cash flow status of the two organisations, allowing a comparative analysis that supports decision making. This comparison assists in identifying both companies' strengths and weaknesses. The data is acquired from the company's annual reports and Fame website, spanning a five-year period from 2018 to 2022. The financial valuation of M&S is included. The study concludes findings of the strengths, weaknesses, opportunities and threats (SWOT) analysis show that Next outperformed M&S during this five-year period. In addition, Next achieved higher profitability than M&S and better outcomes in financial performance in these 5 years. The last part of the study contains the conclusion and recommendations that would help final decision be made for different stakeholders.