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Financial Analysis of Sainsbury PLC

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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].
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