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Sainsbury in Comparison with Tesco

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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
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