Morrison (super market in UK) Financial Reporting Coursework

Morrison (super market in UK) Financial taleing - Coursework ExampleThis ratio particularly shows a firms ability to satisfy its short-term financial obligations. This ratio is calculated using the following formula current assets / current liabilities. Based on Morrison financial report ending on February 2015, the liquidity ratio isIn regards to the companys liquidity status in the past financial year, it is noted that it was not at the desirable mark of a ratio of 11. This was attributed to high outstanding creditors bill and hence, it is belike not wise to invest in the company since the current assets are half of the current liabilities.Under profitability ratio, the rudimentary determinant ratio is lessen on equity, which is calculated by dividing net income by shareholders equity = -238 / 4692 * 100 = - 5.1%. The company made a loss of 238 million in the past financial year and hence why the return on equity was negative (-) 5.1%. This further affirms that the company is not a suitable investment option owing to the fact that the investor will not probably get any return on his / her investment.Since the month of September this year, the companys share price has been on a decline, signaling that the financial strength of the company is still weak up to this moment. The image below reflects the companys share price performance for the past 3 months.All the key financial indicators show that the company is not in a good financial position and it is correct to assume the future prospects will not be good either therefore, it will not be wise to invest in Wm Morrison Supermarket plc at the present moment.Morrisons financial report (2014). Annual Report for the Period of 2013 to 2014. Retrieved from http//www.morrisons-corporate.com/Documents/Corporate2014/Morrisons_AnnualReport13-14_Complete.pdf. Accessed on