Comparative Business Analysis Report between M&S and Next

Abstract

The comparative analysis of M&S and NEXT focused on the financial performance of the companies. Trend and ratio analysis yielded based on the annual reports of the company. Horizontal and vertical analysis were conducted looking at the historical data to affirm the preferrable investment in the primary company M&S based on its performance and that of a competitor NEXT. The research methodology applied for this research was primarily mixed methods with primary focus on historical data. The historical data made it possible to evaluate the trends of performance of the two companies, to conduct ratio analysis of the two and assess the involvement of the company in CSR activities. The methods of this research also included SWOT analysis that evaluated the internal strengths and weaknesses of the company. The historical data also provided a basis for investigating the cash flow position of the two companies providing a comparison that yields positive decision-making support. Data collected from the annual reports of the company targeted 10 years coverage from 2011 to 2020. The findings of this research affirm that NEXT presents better profitability and liquidity compared to M&S. Nonetheless, NEXT has a higher level of leverage that possess a higher risk for investors compared to M&S. The SWOT analysis projected both companies to operate in an actively growing industry with online presence and introduction of new technologies as factors to consider. It is recommended that investors M&S for long-term possession supported. Keywords: Horizontal, vertical, ratio analysis, SWOT analysis, trend analysis, M&S and NEXT