The report will analyse the performance of Tesco and compare it to J Sainsbury PLC in terms of financial performance. The report will also investigate the differences in the results of the company s activity displayed in the annual reports. This entails analysing the company by a number of parameters and ratios recommended in the literature. The report will also analyze solvency, profitability, capital structure gearing and other important indexes of the organisation and comparing with J Sainsbury Plc. I will use Annual reports of the two companies as data source as provided by FAME database which uses a unified format for Reports disclosure while the original companies Annual reports can be confusing as they may use different accounting policy to value its assets and may disclosure results of the year s activity in a different form. However, I will broadly use Annual Reports as a source for comments in the analysis results and additional information. I will also use some electronic databases such as Thomson Financials, FT.com, Reuters Financials and Finance Yahoo!