Abstract
The ratio analysis is the way to find information about a company's financial organisation. Most of financial information are available on the website of companies. They are easily available by everyone.
Ratios are calculated in order to compare the company to an other company (same kind of company and direct competitors) and to compare these results to the previous years to see the health of it ; and they can also see in the company does better or not than before. We can also make forecasts with these ratios.
Ratios judges the company's capability to be succesful or not. Moreover, it can help investor to know to financial situation of the company to invest in. The differents ratios can predict the company's economic situation for the forthcoming years and can see if company's objectives are acomplished. We can divided the ratios analysis by 3 different steps as : the profitability analysis, the liquidity ratios analysis, and the investment ratios analysis.
I decided to compare Morrisons with its most look-a-like competitor : Sainsbury. Both of them are in UK and propose the same range of products anf have mostly similar finance.
