M&S vs John Lewis

In: Business and Management

Submitted By sunnyaston
Words 3419
Pages 14
Mark and Spencer vs John Lewis Partnership
Contents
Introduction 2
Mark and Spencer: 2
Competitors: 3
John Lewis Partnership 4
Factors affecting financial Performance: 5
Analysis of Data Available 6
Revenue and Growth: 6
Profitability Ratios: 6
Gross Profit: 7
ROCE: 7
Net Profit Margin 8
Net Asset Turnover 8
EBITDA/Capital employed 9
Activity Ratios 9
Debtor days 9
Creditor days 10
Stock days 10
Cash Conversation Cycle 11
Sales/net current assets 12
Liquidity ratios 13
Current Ratio 13
Quick Ratio 13
Gearing Ratios 13
Capital Gear Ratio 13
Debt/Equity Ratio 14
Interest cover and interest gearing 14
Investor ratios 14
Return on equity 14
Dividend per share 14
Earnings per share 15
Dividend cover 15
Price/earnings ratio 15
Dividend yield 15
Earnings yield 15
Appendix: 18
Key Facts 19

Introduction
Mark and Spencer:

History: The foundation of Marks and Spencer plc was laid when Michael Marks, a small retailer, entered into a partnership with Tom Spencer, who was a cashier at a wholesale company, in 1894. In 1901, they acquired a warehouse in Manchester and in 1904, acquired retail premises in Leeds. In 1914, when the company was being run by their successors, Marks & Spencer bought the Penny Bazaar Company in London. In 1920, they adopted a policy change, and instead of buying from wholesalers started buying directly from manufacturers. In 1926, they started selling textiles, and in 1930 opened their flagship store at Marble Arch in London. Their food department was opened up in 1931. Between 1930 and 1955, the company tried many innovative things such as opening up café bars, setting up a staff welfare service, opening a research lab and experimenting with the self service option. By 1956 all their goods were sold under the St. Michael Label. (marksandspencer.com)
Present: Marks and Spencer Group plc (M&S) is one of top 10…...

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