Preview

Sainsbury in Comparison with Tesco

Good Essays
Open Document
Open Document
2410 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Sainsbury in Comparison with Tesco
.Ratio calculation of the two companies in 2009
1.1.Return on capital employed(ROCE) operating profit + share of associate(etc) companies’ profit x 100 = Return on capital Long term finance(total asset- current liablities) employed (ROCE) Sainsbury: 673 x 100= 9,46% 7114(=10033-2919)

Tesco : 2970 x 100=10,6% 28013(=46053-18040)

1.2.Rate of return on shareholders’ funds (equity) profit for shareholder x 100 = rate of return on shareholders’ funds (equity) stockholders’ funds (equity)

Sainsbury: 366 x 100= 8,36% 4376

Tesco : 1930 x 100= 14,91% 12938
1.3. Gross margin gross profit x 100 = gross margin revenue
Sainsbury: 1,093 x 100 = 5,76% 18,968

Tesco : 4,218 x100 = 7,76% 54,327

1.4. Operating margin operating profit x 100 = operating margin revenue
Sainsbury: 673 x 100 = 3,54% 18968

Tesco : 2970 x100 = 5,46% 54327

1.5. Asset turnover sales = asset turnover net asset(total asset- current liabilities)

Sainsbury: 18968 = 2,66:1 7114(=10033-2919)

Tesco : 54327 = 1,94:1 28013(=46,053-18,040)

1.6. Rate of stock turnover inventories(stock) *365 = asset turnover cost of sales
Sainsbury: 689*365 = 14 days 17875

Tesco : 2669*365 = 19 days 50109

1.7.Borrowing/equity ratio non-current loans(includes short-term borrowing) x
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Better Essays

    Acc 291 Week 5 Memo
    • 757 Words
    • 4 Pages

    Acc 291 Week 5 Memo

    The Profitability Ratios: The asset turnover is greater in the year 2011 by two thousand dollars. The average assets stayed the same making the asset turnover ratio greater in the year 2011.…

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

    Swot Analysis Of Persimmon
    • 584 Words
    • 3 Pages

    Swot Analysis Of Persimmon

    Net profit margin of Barratt was 2.87% in 2013 and 9.67% in 2014 respectively. It means that in 2013 the company managed to transform 2.87% of its sales into net income and in 2014 it managed to transform already 9.67% of its sales into net income. In other words, in 2013 the company gained 2.87 pounds of net income per 100 pounds of revenue. In 2014 this number significantly increased and became 9.67 pounds of net income per 100 pounds of revenue. Persimmon had a higher net profit margin in 2013 and 2014 than Barratt and it was 12.33% and 14.45% respectively. So Persimmon earned 12.33 pounds of net income per 100 pounds of revenue in 2013 and 14.45 pounds of net income per 100 pounds of revenue in 2014.…

    • 584 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Midterm: Generally Accepted Accounting Principles and Credit Card Receivables
    • 1947 Words
    • 8 Pages

    Midterm: Generally Accepted Accounting Principles and Credit Card Receivables

    c) Gross margin as a % of sales for 2011 (exclude credit card revenues and expenses) 68,466- 47,860 = 20,606 / 68,466 = 30.1%…

    • 1947 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Good Essays

    Acc561 Wk2 Dq1
    • 417 Words
    • 2 Pages

    Acc561 Wk2 Dq1

    Profitability ratios measure the success a company has through its operating activities for a selected period. Two examples of profitability ratios are Return on Assets (ROA) and Gross Profit Margin. Return on assets ratio measures the amount of profit made by a company per dollar of its assets. It is calculated as Net Income /Total Assets. The Coca-Cola Company recorded net income of $9,089 and total assets of $86,174. Using the formula above their return on asset is 10.5 percent. This means for every dollar of assets they are able to generate income of 10.5 percent in profits. The Gross profit margin ratio reveals how much a company earns; taking into consideration the costs to produce goods. Gross profit is calculated as Gross Profit/Revenue. Coca-Cola recorded gross profits of $28,964 and revenues of $48,017 yielding a gross profit margin of 60.3 percent. This is compared to the industry standard to measure how well Coca-Cola control costs.…

    • 417 Words
    • 2 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Mgt 5000
    • 350 Words
    • 2 Pages

    Mgt 5000

    8. The Global Network has sales of $418,700, cost of goods sold of $264,900, and inventory of $61,900. What is the inventory turnover rate?…

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

    Commercial Column Analysis Paper
    • 1436 Words
    • 6 Pages

    Commercial Column Analysis Paper

    RETURN ON EQUITY | | | |PROFIT AFTER TAX X 100 |38.03% |18.84% | |EQUITY | | | |RETURN ON CAPITAL EMPLOYED | | | |OPERATING PROFIT(BEFORE INTEREST AND TAX)X100 |7.4% |4.3% | |TOTAL ASSET-CURRENT LIABILITIES | |…

    • 1436 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Chipotle Mexican Grill
    • 3043 Words
    • 13 Pages

    Chipotle Mexican Grill

    | 2011 | 2012 | SALES | 1,331,968,000 | 1,518,417,000 | 1,835,922,000 | 2,269,548,000 | 2,731,224,000 | COGS | 1,045,041,000 | 1,139,898,000 | 1,346,517,000 | 1,680,321,000 | 1,990,884,000 | SALES-COGS | 286,927,000 | 378,519,000 | 489,405,000 | 589,227,000 | 740,340,000 | GROSS MARGIN | 21.54 | 24.92 | 26.65 | 25.96 | 27.10 | (3) Operating Margins (Hint: Use Income from operations/Sales) Expressed as percentage. | 2008 | 2009 | 2010 | 2011 | 2012 | SALES | 1,331,968,000 | 1,518,417,000 | 1,835,922,000 | 2,269,548,000 | 2,731,224,000 | Op.…

    • 3043 Words
    • 13 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Verizon Case Summary
    • 410 Words
    • 2 Pages

    Verizon Case Summary

    The performance of Verizon form year 2010 to year 2011 was a lackluster performance. Their rate of return dropped from 2010 to 2011. In 2011 they were barely able to cover their liabilities as opposed to 2010. They increase both their debt and long-term debt with is troublesome. They had lower profits and rate of return, while saddling on more debt. However when compared to the industry Verizon fares mediocre. The current ratio at 1.01 is lower than the industry at 1.26 so it’s barely covering its…

    • 410 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    Tesco External Factors
    • 529 Words
    • 3 Pages

    Tesco External Factors

    Internal factors- are the internal qualities and shortcomings that a company exhibits, and they can clearly influence the performance of the business in how well it meets its goals and objectives, and they can be seen as merits in the event that they favourably affect the business, however they can be seen as shortcomings in the chance that they have a harmful impact at the business.…

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

    Comparison Of Tesco And River Island
    • 78 Words
    • 1 Page

    Comparison Of Tesco And River Island

    A similarity of Tesco and River island’s marketing techniques is that they both use TV, newspapers and magazines advertising at regular intervals. One of the benefits of TV advertising is that it has an ability to communicate with a very large audience; TV ads are good to attract attention, create awareness and establish preference for products. Businesses are better able to reach targeted audiences by purchasing ad spots during shows their intended demographic is likely to be…

    • 78 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Powerful Essays

    Two contrasting business - Tesco & Nike
    • 1657 Words
    • 6 Pages

    Two contrasting business - Tesco & Nike

    Tesco is one of the world's leading international retailers. Since the company first used the trading name of Tesco, in the mid 1920s, the group has expanded into different formats, different markets and different market sectors, whereas, Nike is an international brand almost known by every man, women and child in the world. Nike was founded a little later than Tesco in 1962 by Bill Bowerman and Phil Knight. For this assignment I am required to produce a detailed report on two contrasting medium/large sized organisations. My two chosen organisations are Nike and Tesco who I have briefly described above.…

    • 1657 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    ‘What Makes Tesco Successful? Place or Price Strategy?’
    • 1421 Words
    • 6 Pages

    ‘What Makes Tesco Successful? Place or Price Strategy?’

    Tesco was founded by Jack Cohen, who sold groceries in the markets of the London East End from 1919. The Tesco brand first appeared in 1924. He started by buying 30 pounds worth of army surplus rations. On his first day of selling this stock at the market he made a profit of one pound. After selling all of this he had made himself some money to work with. He used this money to buy goods, which other stores would not sell. By 1939, his empire had grown and he had opened up one hundred stores. Jack then went to America for a holiday. Where he found the stores out there were all self-service, he thought this idea was great and could save him a lot of money in shop staff wages. He brought this idea back with him to England and set it up and found this method to be most successful and then introduced every shop to this. Tesco then started their long running campaign to expand by buying up cheap chains of shop. He owned 400 stores worldwide. An idea to create a non-food floor that would only sell items such as clothes and kitchen items also came along. This was so successful that it promoted an idea to build a special designed "super market". The Tesco stores then started to reduce prices. In Europe the group recorded revenues of £44.6 billion during the year ended February 2011, a rise of 5.5% over 2010. The working profit of the group was £2.5 billion during financial year 2011, a rise of 3.8% over 2010. The net profit was £2,671 million in fiscal year 2011, a raise of 14.3% over 2010 in UK alone. (Tesco Annual Report 2011) Its recent overall strategy has been straightforward – expansion by all available means in order to create the greatest possible economies of scale to severely threaten its competitors.…

    • 1421 Words
    • 6 Pages
    Powerful 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
  • Satisfactory Essays

    Tesco vs Asda
    • 971 Words
    • 4 Pages

    Tesco vs Asda

    The certificate gives you a solid basis in business and management. Typical jobs for Certificate holders include marketing co-ordinator and accounts co-ordinator…

    • 971 Words
    • 4 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Comparison of M&S to Tesco Plc
    • 3962 Words
    • 16 Pages

    Comparison of M&S to Tesco Plc

    Marks and Spencer Group (M&S) is the premier retailer in clothing, foods and home ware within the United Kingdom. The company’s commitment to quality, value, service, innovation and trust is a key contributor to their success as a high street retailer in the UK. Their current core UK operations centre around three divisions, food, general merchandise (including clothing and home ware), and the financial services industry. Therefore Tesco plc is the prime UK retailer to analyse and compare growth, financial performance and the financial status of M&S Plc in line with other competitors within the same industry.…

    • 3962 Words
    • 16 Pages
    Powerful Essays
    Read More

Related Topics