Introduction Assessment of financial health of an organisation or a business is an important function of managers. A major resource that managers use to formulate the plans and formulae for financial allocation to the various departments is the financial data at their disposal. An accurate assessment of this data as pointed by Wood (2012a, p. 7) differentiates between effective and non-effective management in most organisations. Financial ratios are important in the analysis of financial information in a company since they enable managers to make the most out of the financial information. According to Wood, ratios in an organisation’s financial analysis enable the “evaluation of relationships between component parts of financial statements to obtain a better understanding of a firm’s performance” (2012a, p. 7). As a follow-up to a previous assignment, the essay will utilise data obtained from the ratio and financial analysis of Jackson Food Group, which is an example of a privately owned company. In the public company category, Marks and Spencer will be analysed. A comparison between the two will then be made involving the assessment of other companies such as Tesco, which is another publicly owned company. The results will then be used to answer the question of how ratio analysis assists in determining the value of a private and public company. Marks and Spencer Critical ratio analysis Mark and Spencer is one of the leading retailers in the United Kingdom. It is involved in the sale of clothing and home products as well as foodstuffs (Smith 2012, p. 4). The company also boasts of a number of retail stores around the world with over 78,000 employees among its ranks. According to Smith, the company has “703 stores across the UK in high streets and retail parks as well as stations, airports, and other locations” (2012, p. 4). The company is also highly profitable besides being the first retail company to surpass the one billion pound mark in the UK (Marks & Spencer Financial Services plc n.d). The company has undergone a series of changes with the executives being changed over the years (Interim 2012/13 Marks and Spencer PLC Fixed Income Investor Conference Call – Final n.d.). The company is of interest in this essay because it is listed in the London Stock Exchange, is a constituent of FTSE 100 index, and thus a public company (Smith 2012, p. 4). The ratio analysis for Mark and Spencer reveals a relationship between the share price and market value of the company over the last three years (Barker 2011, p. 32). The revenue rose steadily from 8,567million in 2010, 8,733 million in 2011, to reach 8,868 in 2012 ( From Marks & Spencer To X Holding: The Future Of Cross-Border Group Taxation 2011). The total operating profit has however been on the decline with 746 million pounds being received in 2010 from a high of 836 million and 853 million recorded in the preceding years (Barker 2011, p. 32). The basic earnings per share in the three years were 33.5p, 38.8p, and 32.5p respectively ( From Marks & Spencer To X Holding: The Future Of Cross-Border Group Taxation 2011). The calculated current ratio over the three years was 0.80 for the year 2010, 0.74 for the year 2011, and 0.78 for the year 2012 (Barker 2011, p. 32). The quick assets ra