Sainsbury’s vs. Morrisons - An Investment Decision Based on Financial Analysis

Zuzana Kalmárová

doi:10.5817/FAI2012-3-2

Sainsbury’s vs. Morrisons - An Investment Decision Based on Financial Analysis

Vol.3,No.3(2012)

Zuzana Kalmárová

https://doi.org/10.5817/FAI2012-3-2

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Abstract

This paper deals with financial analysis of two large supermarket chains in the United Kingdom, namely Sainsbury’s benchmarked against Morrisons. The purpose is to evaluate whether Sainsbury’s is worth investing in at the market price. To measure the performance of the food retailers mainly Annual Financial Reports and key performance indicators will be used as a tool. Given the financial data, findings show that Sainsbury’s is a company worth investing in at the current share price for both conservative investors and those looking for growth industries. There is a high probability that Sainsbury’s will grow in the future.

Keywords:
Sainsbury’s; Morrisons; investment decision-making; financial analysis; performance indicators

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