Analyzing Performance

Review the information from the Ahold/ Tesco case and conduct a performance analysis based on the first four steps of the textbook' s "Six Interrelated Sequential Steps in Financial Statement Analysis" (pg. 3): 1) Identify economic characteristics and competitive dynamics in the industry. 2) Identify the main strategies of the two companies 3) Assess the quality of the financial statements (Income Statement). 4) Analyze profitability and risk. Calculate at least 3 profitability ratios and 3 risk ratios for FY 2011 to support your discussion. 5) Discuss from an investor's point of view why you would rather invest in one company over the other one.