Sainsbury Ratio Analysis

FIN4501
FINANCIAL REPORTING
COURSEWORK

GROUP MEMBERS MISIS
SYED ALI AOUSAJA M00190925
MOHD OVASE BUDA M00380435
SYED ZAIN HASSAN M00375419
ZOHAIB KAMRAN M00384153

TUTORS NAME: FIROOZEH GHAFFARI
SUBMISSION DATE: 19TH JANUARY 2012
WORDS COUNT:

J Sainsbury PLC

List of content
Introduction ------------------------------------------------------------------------ 3
Justification for the selection -------------------------------------------------- 4
Review ------------------------------------------------------------------------------- 5 * Strengths ------------------------------------------------------------------- 5 * Weakness ------------------------------------------------------------------ 5 * Future potentials --------------------------------------------------------- 5
Evaluation --------------------------------------------------------------------------- 6 * Profitability ratio ---------------------------------------------------------- 6 * Liquidity ratio -------------------------------------------------------------- 9 * Gearing ratio --------------------------------------------------------------- 11 * Debt ratio ------------------------------------------------------------------- 12 * Investment ratio ---------------------------------------------------------- 13
Limitation ---------------------------------------------------------------------------- 18
Conclusion --------------------------------------------------------------------------- 19
Recommendation ------------------------------------------------------------------ 19
Contributions ----------------------------------------------------------------------- 20
Bibliography ------------------------------------------------------------------------- 23
Appendix ----------------------------------------------------------------------------- 24

Introduction

Bibliography: [1] http://www.j-sainsbury.co.uk/ [2] Financial ratio analysis [Available from: http://educ.jmu.edu/~drakepp/principles/module2/fin_rat.pdf], [Accessed on January 3, 2012] [5] Sainsbury 2010-11, Sainsbury Annual reports [Available from http://www.j-sainsbury.co.uk/ar11/], [Accessed on January 2, 2012] CR | =1722/2652= .64:1 | =1591/2919= 0.54:1 | 2793/3096= 0.90:1 | =2942/3033=0.96:1 | QR | =(1722-681)/2652= 0.39:1 | =(1591-689)/2919=0.30:1 | =(2793-702)/3096=0.64:1 | =(2942-812)/3033=0.7:1 |