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  • Essay / Tesco Plc Ratios - 3305

    However, in terms of profitability ratios, both companies have their ups and downs. The Morrisons are more profitable; However, Tesco is doing a better job of capital deployment, although this was down 2.0% from the previous year. In terms of financial management ratios, Tesco appears to be performing well compared to Morrison, demonstrating good management of operating assets and the ability to meet its short-term financial obligations. Although Tesco appears to be doing slightly better than Morrison, they both appear to be struggling with liquidity as they are not in a strong position to pay off their current debts by offloading their current assets. In terms of debt ratios, both companies are once again experiencing ups and downs. However, Tesco has a lower risk of insolvency, but lenders feel more reassured by Morrison's continued interest payments because they have financial strength. Tesco's debt-to-equity ratio has remained relatively stable over the past five years, showing that the company is in a stable debt position as its asset investments increase.