Marks and Spencer needs to control its operating expenses. The company has to improve its asset turnover ratio. The average collection period is somewhat better than their competitor; yet, too less days of collection period indicate their rigid credit policy. The company has to focus on improving their inventory days. They have to improve their sales rather than their inventory sitting in the warehouse. It has to improve their cash and cash equivalents also as cash constitutes only 2.55% in the total assets. The company’s debt to equity ratio is more than 200 percent; so it should try to reduce its debt burden and focus on issuing more equity. The company has to improve its current and acid-test ratios, and reduce its reliance on inventories as the acid-test is very poor.