Preview

Financial Analysis of Sainsbury PLC

Best Essays
Open Document
Open Document
4587 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Financial Analysis of Sainsbury PLC
Financial Analysis Of
Sainsbury’s Plc
2010/2011

(Sainsbury supermarket, Blake 2012)

10105011

18/10/2012

Contents of Document
Section

Page

Contents.......................................................................................................................2
Introduction..................................................................................................................3
Subject company and history........................................................................................3
Profitability...................................................................................................................4
Liquidity.......................................................................................................................7
Efficiency.....................................................................................................................9
Gearing Ratios.............................................................................................................10
Working Capital Management.....................................................................................11
Conclusion...................................................................................................................13
References...................................................................................................................15

10105011

18/10/2012

Financial analysis of Sainsbury’s PLC
Introduction
This report will focus upon the financial performance over a two year period of a FTSE 100 company. It will seek to ascertain how well the company has performed by scrutinizing profitability, liquidity, efficiency, gearing ratios and working capital. In addition to the aforementioned points, it will dwell upon economic factors to discuss the impact they have had upon the performance of the business.

The FTSE 100 started in the year of 1984 and was based upon the 100 largest


References: Datta, S. (2011) Economics, Making sense of the modern economy. Third edition. Profile Books. Images James Blake (2012) Sainsbury Supermarket Lecture Notes Agyei-Boapeah, H (2012) Agyei-Boapeah, H (2012). Working Capital Management 1. Lecture notes distributed in the topic BMAIE001AZ2012/3 Managing Finance Agyei-Boapeah, H (2012). Working Capital Management 2. Lecture notes distributed in the topic BMAIE001AZ2012/3 Managing Finance Websites BBC News (2004) Sainsbury Loses Out To Rivals BBC News (2012) Tesco Market Share Dips Below 30%. [ONLINE] Available at: http:// www.bbc.co.uk/news/business-16817254 [Accessed: 18 October 2012]. BBC News (2008) Thousands Stranded By XL Collapse. [ONLINE] Available at: http:// news.bbc.co.uk/1/hi/7611639.stm [Accessed: 21 October 2012]. Bank Of England (2009) Statistical Interactive Database - Official Bank Rate History. [ONLINE] Available at: http://www.bankofengland.co.uk/boeapps/iadb/Repo.asp [Accessed: 19 October Guardian (2011) British Farmers Forced To Pay The Cost Of Supermarket Price Wars. [ONLINE] Available at: http://www.guardian.co.uk/environment/2011/jul/02/british-farmers-supermarketprice-wars [Accessed: 23 October 2012]. Gokwan (2011) Sainsbury Collection Press . [ONLINE] Available at: http://www.gokwan.com/ goks-video-blog/sainsbury-collection-press-launch/ [Accessed: 23 October 2012]. iforex (2012) FTSE 100. [ONLINE] Available at: http://www.iforex.com/ftse-100 [Accessed: 18 October 2012]. Independent (2012) Small Store Openings Boost Sainsbury 's Profits. [ONLINE] Available at: http:// www.independent.co.uk/news/business/news/small-store-openings-boost-sainsburysprofits-7579664.html [Accessed: 20 October 2012]. J Sainsbury (2012) About Us, Store Portfolio. [ONLINE] Available at: http://www.jsainsbury.co.uk/about-us/store-portfolio/ [Accessed: 25 October 2012]. J Sainsbury (2011) Annual Report 2011. [ONLINE] Available at: http://annualreport2011.jsainsbury.co.uk/downloads/pdf/sainsburys_ar11_note_26_notes_to_the_cash_flow_statements.pdf [Accessed: 18 October 2012]. J Sainsbury (2011) Financial Statements, Annual Report, Balance Sheet. [ONLINE] Available at: http://annualreport2011.j-sainsbury.co.uk/financialstatements/balancesheets.shtml [Accessed: 18 J Sainsbury (2011) Financial Statements, Annual Report, Cashflow. [ONLINE] Available at: http:// annualreport2011.j-sainsbury.co.uk/financialstatements/cashflow.shtml [Accessed: 18 October J Sainsbury (2011) Financial Statements, Financial Review. [ONLINE] Available at: http:// annualreport2011.j-sainsbury.co.uk/businessreview/financialreview5.shtml [Accessed: 18 October J Sainsbury (2012) Interim Results For The 28 Weeks Up To 1 October 2011. [ONLINE] Available at: http://www.j-sainsbury.co.uk/media/385958/interims11_rns.pdf [Accessed: 22 October 2012]. J Sainsbury (2012) Media, Latest Stories. [ONLINE] Available at: http://www.j-sainsbury.co.uk/ media/latest-stories/2012/20121005-gok-wan-one-year-on-and-five-more-gok-for-tu-collections-tocome/ [Accessed: 20 October 2012]. J Sainsbury (2011) Media, Report. [ONLINE] Available at: http://www.j-sainsbury.co.uk/media/ 171813/a2r011_report.pdf [Accessed: 27 October 2012]. J Sainsbury (2012) Sainsburys Story. [ONLINE] Available at: http://www.j-sainsbury.co.uk/aboutus/sainsburys-story/20th-century/#tabbed_section [Accessed: 18 October 2012]. Nationwide (2012) Glossary. [ONLINE] Available at: http://www.nationwide.co.uk/search/ Glossary.aspx?letter=F [Accessed: 18 October 2012]. Tesco (2011) Annual Report 2011. [ONLINE] Available at: http://www.tescoplc.com/files/pdf/ reports/tesco_annual_report_2011.pdf [Accessed: 26 October 2012]. Telegraph (2012) Fundamentals For Sainsbury (J). [ONLINE] Available at: http:// shares.telegraph.co.uk/fundamentals/?epic=SBRY [Accessed: 22 October 2012]. Thisismoney (2011) Sainsbury 's delivers profit rise and guarded forecast. [ONLINE] Available at: http://www.thisismoney.co.uk/money/markets/article-1722821/Sainsburys-delivers-profit-riseand-guarded-forecast.html [Accessed: 18 October 2012]. Vanquis (2012) UK Consumer Spending 'increased in September '. [ONLINE] Available at: http:// www.vanquis.co.uk/news/Credit-Card-News/Oct-2012/UK-consumer-spending-increased-inSeptember [Accessed: 19 October 2012].
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    ECO365 Week 2 Simulation
    • 729 Words
    • 3 Pages

    ECO365 Week 2 Simulation

    References: Colander, D. C. (2010). Economics (8th ed.). New York, NY: McGraw-Hill. Retrieved April 11, 2013 from The University of Phoenix eBook Collection database.…

    • 729 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    ECO561 Business Proposal
    • 1883 Words
    • 8 Pages

    ECO561 Business Proposal

    References: McConnell, C. R, Brue, S. L., & Flynn, S. M. (2009). Economics: Principals, Problems, and Policies. Retrieved from http://ecampus.phoenix.edu/content/EbookLibrary2/content/eReader.Sapx.…

    • 1883 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Good Essays

    Eco 561 Business Proposa;
    • 3681 Words
    • 15 Pages

    Eco 561 Business Proposa;

    McConnell,C.R.. Brue,S.L. and Flynn, S.M. (2009) Economic: principles, problems and policies (18th ed.) Boston Ma. McGraw-Hill, Irwin pg. 224-233…

    • 3681 Words
    • 15 Pages
    Good Essays
    Read More
  • Good Essays

    Sainsburys Aims and Objectives
    • 552 Words
    • 3 Pages

    Sainsburys Aims and Objectives

    References: Telegraph (May 2009) Sainsburys enjoys profit growth as it proves recession winner – Amy Wilson…

    • 552 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Week 3 Dqs Eco 561
    • 959 Words
    • 4 Pages

    Week 3 Dqs Eco 561

    McConnell, C. R., Brue, S.L., & Flynn, S.M. (2009). Economics: Principles, problems, and policies (18th ed.). New York: McGraw Hill/Irwin…

    • 959 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Week 2 Learning Team Deliverable Team B
    • 530 Words
    • 2 Pages

    Week 2 Learning Team Deliverable Team B

    References: McConnell, C. R., Brue, S. L., & Flynn S. M. (2009). Economics: Principles, Problems, and Policies (18th ed.). New York, NY: McGraw-Hill/Irwin.…

    • 530 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    Eco 561 Wk 4
    • 1761 Words
    • 8 Pages

    Eco 561 Wk 4

    McConnell, C. R., Brue, S. L., & Flynn, S.M. (2009). Economics: Principles, Problems, and Policies (18th Ed.). Boston, MA: McGraw-Hill Irwin.…

    • 1761 Words
    • 8 Pages
    Better Essays
    Read More
  • Good Essays

    Comparing Sainsbury's Aims And Objectives
    • 703 Words
    • 3 Pages

    Comparing Sainsbury's Aims And Objectives

    Introduction: Below I have written about how Sainsbury’s met their sales targets. How the price war of the supermarket has affected Sainsbury’s and what they have changed to fight back. How Sainsbury’s have capitalized on their sales. How they are opening even more stores within different areas and how their profit is rising.…

    • 703 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Unit 1 P1
    • 1928 Words
    • 8 Pages

    Unit 1 P1

    |Public limited company. |significantly over the past 10 yrs. It has |businesses it operates in | |Tesco is on the stock market, it |sector, it provides services such|…

    • 1928 Words
    • 8 Pages
    Good Essays
    Read More
  • Better Essays

    Acc 557
    • 814 Words
    • 4 Pages

    Acc 557

    McConnell, C., & Brue, S. (2005). Economics: principles, problems and policies (16th ed.). New York: McGraw-Hill.…

    • 814 Words
    • 4 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Overcoming Economic Challenges: Sainsbury's Case Study
    • 540 Words
    • 3 Pages

    Overcoming Economic Challenges: Sainsbury's Case Study

    First of all, I would like to talk about the challenges, which Sainsbury’s face during this recession. People’s confidence in buying decreases and they tend to save money rather than spend. Because of that the business faces the challenge of how to stay profitable. Most of the business will increase the price for their goods while Sainsbury’s took a different approach, which allowed for the business to attract more customers and stay profitable. The company reduced their products’ prices to stay more competitive in the market and attracted more customers and advertised their own brand ‘Sainsbury’s Basic Value’. What’s more, they have done a lot of promotion, because during the recession customers tend to spend less and buy only necessary goods. So Sainsbury’s were promoting goods, which people don’t need, but when customers see a discount on them they tend to buy it even if it is unnecessary. Another challenge that the company faced was staff redundancy, which allowed for the company to save money. In my opinion, Sainsbury’s in the near future will be changing the contracts – offering sessional hours such as zero hour contracts. This would allow the company to reduce the employee number without breaching the law.…

    • 540 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    ECO/561
    • 297 Words
    • 2 Pages

    ECO/561

    McConnell, C. R., Brue, S. L., & Flynn, S. M. (2009). Economics: Principles, problems, and policies (18th ed.). Boston, MA: McGraw-Hill Irwin…

    • 297 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Sainsbury Operations
    • 2417 Words
    • 10 Pages

    Sainsbury Operations

    This report provides a view on operations of SAINSBURY’S , the third largest supermarket chain across United Kingdom. SAINSBURY’S , in spite of being the longest standing retail chain has been facing stiff competition from rivals like TESCO , MORRISONS. The competitors seemed to have developed at a faster pace since SAINSBURY’S has been through a difficult time in recent years and TESCO is now twice the size in terms of turnover.…

    • 2417 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Finance
    • 5197 Words
    • 21 Pages

    Finance

    4.3: Analyse financial statements using appropriate ratios and comparisons, both internal and external of Sainsbury’s………………………………………………………………………………

    • 5197 Words
    • 21 Pages
    Powerful Essays
    Read More
  • Good Essays

    Minimum Wage Controversy
    • 876 Words
    • 4 Pages

    Minimum Wage Controversy

    * Sowell, Thomas (2007-04-02). Basic Economics (3rd Edition): A Common Sense Guide to the Economy. New York: Basic Books.…

    • 876 Words
    • 4 Pages
    Good Essays
    Read More

Related Topics