The cycle of both debtor collection period and creditor payment period demonstrates that the company receive the money from their debtors before paying to their suppliers, which is good since they do not need to finance themselves but pay with the cash they get in from debtors. Has J. Sainsbury (JSAIY) Outpaced Other Retail-Wholesale Stocks This Year? The ratios are categorized into five major groups such as liquidity, profitability, stock market performance, capital structure and working capital management. Free resources to assist you with your university studies! For example, Exhibit 1 has to be the first exhibit discussed in the paper. Sainsbury's has been affected by supermarket stores such as Lidl and Aldi, who offer products at a discounted price. Albeit the liquidity position seems weak, Sainsbury is capable to pay off the short-term liabilities as the company has a lump sum of retained earnings (p. 98) to utilize when deemed necessary. It is important to be able to articulate why a certain solution is recommended and to be able to defend it.There is usually not one correct solution to these case problems. The Jardine Matheson Group is a major conglomerate within the Asian region. Stock quotes provided by InterActive Data. In September 2016, it took a step further into nonfood retailing with the purchase of Home Retail Group, operating the Habitat and Argos chains (general merchandise and electronics stores), for GBP 1.10 billion. Thus, it can be said that Tesco might be a better choice to invest in, but this is open to discussion. Backlinks from other websites are the lifeblood of our site and a primary source of new traffic. This investment adviser does not provide advice to individual investors. The company was unable to successfully convert revenues into net income. Show sources information J Sainsbury's operated at median current ratio of 0.6x from fiscal years ending March 2019 to 2023. 0.7:1 means that for every 1 of current liabilities, the business has 0. The ratio examination is utilized to present the performance of the enterprise or compare its results with other firms over the time. The key element to take into consideration for an investor is inventory days as it determines how fast the company can generate cash and reduce inventory loss. It is important to draw attention to the fact that Sainsburys financial situation does not attract investors, due to the decrease in the profit and sales. On the other hand, they have some differences that make one stand out from the other. However, it is important to highlight that this ratios provide an overview of the businesss financial condition, but an analysis in depth is needed to know the reasons why certain changes have occurred (Maclaney and Atrill, 2002). Prepare an executive summary of the problem. The P/E ratio has drastically increased from 18.27 times in year 2018 to 24.59 times in year 2019 as Sainsburys and Asda confirmed to merge in year 2018. These are the countries currently available for verification, with more to come! As per previous stated, retailer heavily depends on the inventory to generate cash and pay off expenses, hence it is less favourable. If you are an admin, please authenticate by logging in again. Fiscal year is March-February. The company has diversified away from core food by selling clothing, telecom equipment, and other nonfood items. c) Dividend yield a) Gearing ratio Though the company aim to generate strong, consistent cash flow (p. 09) but it has been utilized for long term debt reduction. Kroger (KR) Hits Fresh High: Is There Still Room to Run? Sainsburys is capable to generate more cash from the share issued. Study for free with our range of university lectures! Nevertheless, the companys ratio is less than 1 that indicates that the firm is unable to pay off its current liabilities, hence its a bad indicator for investors and partners. HARDING, D., 2005. There was lack profit and the firm was struggling to cover additional expenses related to operating costs or tax. The purchase of the IT systems will give opportunities to enhanced operational effectiveness, a stronger platform, low costs and an increased in sales. In 1995, the Sainsburys position dropped to the third place with the Tesco as a leader on the market and Asda in the second place. In 2016, there was increase by 10.6%. It has an affiliated registered investment adviser, which serves as the subadviser to an exchange traded fund. Table 3. Please review the rubric prior to beginning the assignment to become familiar with the expectations for successful completion. It shows that the firm is unable to convert quickly current assets into cash and pay off short term debts through selling liquid assets at short notice. J Sainsbury current ratio for the three months ending September 30, 2022 was. Historic Performance Analysis Sainsbury's ratio analysis: Peter et al. J Sainsbury current ratio for the three months ending September 30, 2022 was . The dividend yield had a slightly decreased since the dividend per share only increased by 0.7% from last year. The purpose of this report is to analyze Sainsburys financial performance using the analysis of ratios as a financial tool. View Accounting-and-Finance-Assignment-Sainsbury's-Ratio-Analysis.doc from ACCTG 102 at San Francisco State University. The Sainsbury's current ratio is not good at all as it has current liabilities compared to the current assets. b) Receivables period User generated content is uploaded by users for the purposes of learning and should be used following Studypool's. Finance and accounting. Use Ask Statista Research Service, 12 weeks ending September 14, 2014 to 12 weeks ending December 25, 2022. 's latest financial reports and stock price the company's current price-to-earnings ratio (TTM) is 850.639. Retail operating profit, down 7% versus the 2021/22 financial year and down 1% versus the 2019/20 financial year. J Sainsbury's current ratio hit its 5-year low in March 2021 of 0.6x. 3rd Edition. Liquidity ratios No plagiarism, guaranteed! Prepare an executive summary of the problem. Looking for a flexible role? low interest rates. Total Starbucks locations globally 2003-2022, U.S. beer market: leading domestic beer brands 2017, based on sales, Revenue and financial key figures of Coca-Cola 2010-2022, Profit from additional features with an Employee Account. Although they have invested in a long-term project and are positive in a potential growth in the coming years, to reach their aim they have to work hard and play in the same field its competitors (Tesco and Asda) are doing, by having low prices and good quality food always available in their shelf for all kind of consumers. Efficiency ratios All work is written to order. As soon as this statistic is updated, you will immediately be notified via e-mail. Statutory profit before tax versus 854 million in the 2021/22 financial year and versus 278 million in the 2019/20 financial year. Research Report (3500 Words Required)See the attached document for full detailsWrite a scholarly research report on a topi Research Report (3500 Words Required)See the attached document for full detailsWrite a scholarly research report on a topic related to Software Engineering (see Appropriate Topics). It operates over 600 supermarkets and 800 convenience stores, all in the U.K. The responsibility of the maritime carrier is one of the most important topics of maritime law organized by the Algerian l A word cloud is a technique of visualizing words in a clear text or object in which the scope of each word specifies its r Our tutors provide high quality explanations & answers. Non-financial information statement. (Gitman, 2011). Liquidity Ratios (Base on data contained in Appendix B). Chart. b) Net margin ratio c) Payables period, 6. View and export this data going back to 2005. *You can also browse our support articles here >. statistic alerts) please log in with your personal account. In 2015, there was a significant fall by 9.5%, what can be result of competitive advantage loss. 2023 2022 2021 2020 2019 5-year trend; Net Income before Extraordinaries----- The average 12.5% in profit is generated by 1 in assets. See Full Profile. e) Return on equity (ROE), 4. Introduction The purpose of this report is to conduct a comparative ratio analysis of the financial statements of J. Sainsbury PLC and Tesco PLC for the year-ending 2013. Document your evaluation. Grocery market share in Great Britain 2017-2023, Tesco store numbers in the United Kingdom (UK) and Ireland 2012-2023, Most popular supermarket chains in the UK Q4 2022, Sainsbury's store numbers in the United Kingdom (UK) 2009-2023, by store type, To download this statistic in XLS format you need a Statista Account, To download this statistic in PNG format you need a Statista Account, To download this statistic in PDF format you need a Statista Account. Sainsburys has a weak liquidity position and the situation is weaker in year 2019. The ratio rose by 3.8%, what advocates an upward profit trend. The quick ratio indicates whether the firm owns adequate number of short-term assets to cover immediate liabilities. According to Sainsbury's No plagiarism, guaranteed! Each period is for the 12 weeks ending on each given date.Figures for January 2014 to May 2021 can be found in previous press releases published by Kantar.Sales include expenditure through main store tills but exclude petrol and in-store concessions. The higher the current ratio, the more capable the company is of paying its obligations. * Data shows growth compared to the same period last year. Retail - Supermarket Chains. b) Dividend payout ratio If you need assistance with writing your essay, our professional essay writing service is here to help! Available from: [http://www.accountancyage.com/news/1139885] Accessed 22/Apr/2005. The current ratio has a slightly fall, due to the current liabilities rising faster than the current assets. Due to the retailers characteristic, it just takes 2 days for Sainsburys to collect receivables. 2010 2012 2014 2016 2018 2020 2022 0.5 0.6 0.7 Current Ratio. For this reason it is good for investors to wait and see its performance for the next years, currently is not a good moment to invest in. Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. At the end of 2022 the company had a P/E ratio of 8.17. Sainsburys promises must mean business. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign. As Maclaney and Atrill (2002, p. 197) said, Certain ratios may be calculated that examine the relationship between liquid resources held and creditors due for payment in the near future. Are Investors Undervaluing These Retail-Wholesale Stocks Right Now? Our best tutors earn over $7,500 each month! Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses. Both chains have similar things to offer, such as own label goods; have concern about consumers needs for example healthy and organic food; launched loyalty cards; expand their products such as clothing, electro domestics, etc. However, the merge has been blocked by CMA in year 2019 and the P/E ratio is likely to decrease in year 2020. . In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Sainsbury's current ratio shows a trend of growth during 2015 to 2018 compare to a decline of 0.67 in 2019 as illustrated in Table I above. Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. a) Inventory holding period Regarding on this table, Sainsburys profitability ratios show a moderately deterioration in profit from 2003 to 2004 in a margin of 6%. The analysis is established on the source of the ratio analysis, in . Quantitative analysis should be done in exhibits and tables and referenced in this section.5. Should Value Investors Buy These Retail-Wholesale Stocks? Disclaimer: This is an example of a student written essay.Click here for sample essays written by our professional writers. All currency related amount are indicated in the company's associated stock exchange currency. The Sainsburys presence is visible in London Stock Exchange and FTSE 100 Index (Annual Report, 2016). It should not be treated as authoritative or accurate when considering investments or other financial products. Companies with a positive P/E ratio bellow 10 are generally seen as "value stocks" meaning that the company is already very profitable and unlikely to strong growth in the future. MARKETING WEEK, 2004. Another factor is Brexit which caused pound weaker, as dividend cover normally perceived as an economys effect (strong or weak economy). Efficiency and Effectiveness (Base on data contained in Appendix A). Describe how Monsanto became so influential in the chemical and agricultural One of the things that heightened the power of Monsanto in chemical CS 632 UNCW Cyber Security and Artificial Intelligence Research Report. CFI.com, n/a. The company's c. out if a business has enough assets to meet its short time obligations. Executive Summary The report is intended to assess the financial performance of two well-known companies in the retail sector of the United Kingdom. Albeit it is a loss that the merger of Sainsburys and Asda is blocked, Sainsburys is a safe investment and is giving out dividends consistently. Similar situation happened with the acid test ratio with a slight fall in the rate. Enter the email address associated with your account, and we will email you a link to reset your password. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. HIM 650 GCU Data Base Design of Electronic Medical Records Discussion. However, in 2014 Sainsburys regained its position and came in the second place (Sainsburys, 2017). Sainsbury's in profile J Sainsbury plc was founded in 1869 as a fresh food retailer in London. Annual Report and Financial Statements 2019. Do you have a 2:1 degree or higher? Fundamental company data provided by Morningstar, updated daily. Learn more about how Statista can support your business. Acceptable current ratios may vary from one sector to another, but the generally accepted benchmark is to have current assets at least as twice as current liabilities (i.e., Current Ration of 2 to 1). Nowadays, it is important for organizations to know how to survive in the competitive market in which they are involved, markets that require managers who understand and are aware of the internal and external factors that concerns to the company. Furthermore, quick ratio is lower than the current one, what demonstrates that the current assets are significantly contingent on inventory (ACCA, 2012). If the business has a healthy current ratio but a poor acid test ratio, it might be that the business is holding too much of stock.Sainsbury's (Acid test Ratio)The acid test ratio of 0.7:1 for 2006 highlights that Sainsbury's has serious problems. However, the company managed to turn it around and increased the DPS. . Annual Report and Financial Statements 2004. The former will be a positive impact in the financial performance of the company in a long-term by increasing sales and reducing costs; and the latter will be used to develop and make more effective the financial and management resources, hence it will enlarge Sainsburys core UK business and strengthen its market position. Table 1. Are you in need of an additional source of income? The financial ratio analysis constitutes the most typical and broaden measurement to investigate the financial position of the company. Furthermore, Sainsbury has longer payable days than inventory day hence they have more time to sell the goods and cover the payable. These ratios show a low rate, due to the fast stock rotation which produces cash sales. Click here to check it out. Please check your download folder. b) Quick ratio, 5. If you use our chart images on your site or blog, we ask that you provide attribution via a "dofollow" link back to this page. Profitability Ratios (Base on data contained in Appendix A) Regarding on this table, Sainsbury's profitability ratios show a moderately deterioration in profit from 2003 to 2004 in a margin of 6%. Pros and cons of different solutions should be presented. JSAIY or WMT: Which Is the Better Value Stock Right Now? Post a Question. Regarding to the stock holding period, even though it has fallen in 1 day, it still is high for a business like supermarket in which the stock plays an important role because the rotation has to be in short periods of time to keep the food fresh. Hence, the market expects a better return in investing Sainsburys and leads to a higher P/E ratio. Average price target from 10 ratings: . Given the financial data, findings show that Sainsbury's is a company worth investing in at the current share price for both conservative investors and those looking for growth industries.. To export a reference to this article please select a referencing stye below: If you are the original writer of this essay and no longer wish to have your work published on UKEssays.com then please: Our academic writing and marking services can help you! Percentage change in sales at Sainsbury's in Great Britain compared to a year earlier from September 2014 to December 2022* [Graph]. Studypool matches you to the best tutor to help you with your question. 22,500-15,900=6,600 variable costs Dedicated to your worth and value as a human being! Current Ratio: Particulars: 2020: 2019: Trend: Current assets: 0%: Current Liabilities: 2% : #DIV/0! *Exhibits/Tables/Charts Attached. Another possible issue is the company issues more share to generate more equity, which leads to higher dividend pay-out. Therefore, it is vital to know the existence of different techniques of measurement such as financial tools, which can give an idea on how the companys financial situation is going to affect its performance in the marketplace. For instance, Sainsburys capital gearing ratios are: Table 4. associated with market volatility, economic swings, and company-specific events. Disclaimers: GuruFocus.com is not operated by a broker or a dealer. The higher the current ratio, the company is more likely to generate and dispose more current assets to pay off its debts (Atrill e t al., 2005). This feature is only available for Premium Members, please sign up for. Ultimately having a, higher current ratio would make Sainsburys more competitive in, Sainsburys will also be in a more positive positio, have to pay lower amounts back on their loans this means that having higher gearing will be, at lower risk to Sainsburys which is in a volatile mark. In this case, the investor ratios for Sainsburys are the followings: Table 5. $7.922B. Pros/Cons Alternative solutions. Moreover, sales have remained constant which have risen in 0.3%. As the company has lesser borrowing which leads to low interest payable, therefore the ICR (interest cover ratio) is 3.15 times in year 2019. For example, solutions that violate economic principles, or are inconsistent with financial theory, or are based on inconsistent assumptions, or violate ethical or legal standards are not acceptable solutions.Solutions not supported by data are not acceptable solutions.3.Statement Problem Do not repeat case just state the problem to be solved.This statement should briefly outline the problem presented in the case. While Tesco have a good supply chains and a good strategy, which is having low prices and improving customer satisfaction by having the right products in shelf, Sainsburys is facing some problems in what a supply chain relates to the implementation of the IT system (http://proquest.umi.com), which causes the lack of products in the shops and also the customers find it more expensive than its competitors, where they can have equal quality products with lower price (http://proquest.umi.com). Compared to Tesco UK (Investing.com, 2019), Sainsbury has a better ACT. Kantar Worldpanel. And the median was 0.49. From 2011 to 2013 Sainsbury's gearing rose from 35.9% to 40.1% and its The slight decrease is due to increased current assets during 2013, which affects the denominator here hence the ratio is significantly lower than in 2012 (Sainsbury's, 2014). In accordance with the recently published financial statements, J Sainsbury Plc has a Current Ratio of 0.68 times. [online] Available at: Investing.com, (2019). Current Ratio 7866 / 10302 = 76.35% 7589 / 11417 = 66.47% Acid Test Ratio (ACT) 6056 / 10302 = 58.78% 5660 / 11417 = 49.58% . 3rd Edition. Because of all these reasons, there was a drop in profit, but as it is a long-term investment it is estimated to be an income generation in the future. Real-time U.S. stock quotes . Quick Ratio One of the short-term indicators for liquidity is quick ratio, which measures a company's ability in meeting short-term liabilities with its quick assets that can be converted into cash within 90 days [9]. You would never start with Exhibit 4 for example.---**Important**----NPV analysis : accept or reject-Use Exhibit 25.1, 25.2, 25.3 : What is the historical financial analysis?-Calculate FCF using Capital Budgeting, reference exhibit in text-Calculate WACC for Star River using Comparable Company Exhibit 25.5. The gross margin for year 2019 is 6.92%, which has a slightly increase of 0.31% compared with 6.61% in year 2018. JSAIY vs. WMMVY: Which Stock Is the Better Value Option? Sorry. J Sainsbury's current ratio for fiscal years ending March 2019 to 2023 averaged 0.6x. The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It has been selling products online since 1997. Hence, the market expects a better return in investing Sainsbury's and leads to a higher P/E ratio. It employs 148,000 people. Its business interests include large companies, which are market leaders in many fields, including engineering and construction, transport services, motor trading, property, retailing, and insurance broking. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 1000+ markets in 190+ countries & territories, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. However, Sainsbury's could be in a better financi, company's current ratio, this implies that they hav, costs are taken off. Accounting in a Business Context. This information will be taken from the annual reports of 2003 and 2004. Capital structure ratios Payment is made only after you have completed your 1-on-1 session and are satisfied with your session. Dedicated to your worth and value as a human being! Most of J Sainsbury's fundamental indicators, such as Current Ratio, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. Application of theoretical models will be done in this section. Analyze the Sarasota opera case and connect the Opera shows and productions to your understanding of project, program and Analyze the Sarasota opera case and connect the Opera shows and productions to your understanding of project, program and portfolio of projects. This report shows the comparison between the two companies in 2011, 2012, and 2013. This is especially good for Sainsbury's whos in a competitive, with small profit margins so having a rising current ratio, competitive advantage over competitors like Tesco. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. Albeit the company has deferred the tax credit of 50m pounds (note 8) which lead to 80m pounds different shown in the income tax expense (see income statement), the post-tax profit margin in year 2019 remains lower than year 2018, which is 0.75% compared to 1.09%. Sainsbury (J) has a current ratio of 0.68. Our verified tutors can answer all questions, from basicmathto advanced rocket science! Copyright 2003 - 2023 - UKEssays is a trading name of Business Bliss Consultants FZE, a company registered in United Arab Emirates. On the other hand, the creditor payment period has stayed constant and it shows good rates. Gross margin ratio investigates how much gross profit to the revenues generates the enterprise for the specific period. Finally, this report will give conclusions and recommendations to those investors who want to make an investment in a secure company. One of these tools can be the used of financial ratios, which gives to managers the information to set up strategies in order to make decisions in the future. J Sainsbury Current Ratio is currently at 0.68 X. Sainsburys is the second largest supermarkets chain with the 16.9% share in the retail sector in the United Kingdom. The following format is REQUIRED:I.Title Page2. In its 2021/22 financial year the company made 29.4 billion British pounds in retail sales. OBRIEN, L., 2004. The price earnings ratio in Sainsbury's has maintained an improper trend where this ratio was negative in 2015 and which has . It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Current: 0.52 During the past 13 years, Sainsbury (J)'s highest Quick Ratio was 0.59. Looking back at the last 5 years, J Sainsbury's current ratio peaked in March 2022 at 0.7x. [Online]. This reduction was mainly caused by the 554 million acquisition of IT system, and by the drop in profits for the financial year. Here you can choose which regional hub you wish to view, providing you with the most relevant information we have for your specific region. London: MacMillan. Overall, the company has a greater ability to re-invest the business in a long-term run. The main reason behind this could be the company able to generate a higher retail free cash flow of 461m pounds (p. 42) to cover. For instance, the profitability ratios of Sainsbury plc are: Table 1. J Sainsbury PLC annual income statement. In the next part, it will be given some additional information about Sainsburys and also a comparison with Tesco. Since 1869 Sainsbury's has continued to grow and has become one of the largest supermarkets in the UK, with a current market share of 16.9%. GILES, R. and CAPEL, J., 1994. Current Ratio 0.68: Quick Ratio 0.52: Cash Ratio . J Sainsbury's Current Ratio is calculated by dividing the Current Assets of a company by its Current Liabilities. As a Premium user you get access to background information and details about the release of this statistic. All Rights Reserved. Provide details on what you need help with along with a budget and time limit. Companhia Brasileira De Distribuicao (CBD), J Sainsbury Current Ratio 2010-2022 | JSAIY. Statista. Sainsburys has scored a low gearing of 21.62% in year 2018 and lower to 11.23% in year 2019 as a result of business strategy to reduce net debt (p. 17). b) Interest cover However, after a fall in 2015 there was high rise in 2016, what management and better control expenses or change the strategy. Studypool always delivers quality work. . Thats negative ratio indicates inefficiency in management in that period. -share. J Sainsbury's operated at median current ratio of 0.6x from fiscal years ending March 2019 to 2023. Available from: [http://proquest.umi.com/pqdweb?did=727035691&sid=8&Fmt=3&clientId=15517&RQT=309&VName=PQD] Accessed 20/Apr/2005. The two firms are Sainsbury's and Tesco. Best Momentum Stock to Buy for January 6th, The Zacks Analyst Blog Highlights Jeronimo Martins, J Sainsbury, Kroger and Tesco, $JSNSF $JSAIY - J Sainsbury plc (JSNSF) Q2 2022/2023 Earnings Call Transcript. $JSNSF $JSAIY - J Sainsbury plc (JSNSF) CEO Simon Roberts on Q2 2022 Results - Earnings Call Transcript., $JSAIY - J Sainsbury: No Obvious Price Upside. Additionally, Sainsburys aim to partner with different sectors to provide a one-stop shopping experience which will make a great profit in the future. The earning per share has fall by 13% mainly caused by the higher profits on business disposals that the company went through last year, so the return to shareholders was a lower rate per share. The Jardine Matheson Group is a major conglomerate within the Asian region. Current Ratio: 0.63: 0.64-1%: Quick ratio . . Analyst Ratings. On the other hand, the times interest covered stayed constant and even though is a low rate, the company still can cover its interest with their profit. In the final phase of the Database Design Proposal assignment, you are required to design a working prototype of the proposal. Access over 20 million homework documents through the notebank, Get on-demand Q&A homework help from verified tutors, Read 1000s of rich book guides covering popular titles, The change in Sainsburys current and gearing rat, business with difficult market conditions and low interest ra, proportion of the business which is made up of long-term liabilities allowing you to find out, how much of your financial structure is made up of debt. I. Available: https://www.statista.com/statistics/386729/sainsburys-sales-percentage-change-great-britain-uk/, Percentage change in sales at Sainsbury's in Great Britain compared to a year earlier from September 2014 to December 2022*, Immediate access to statistics, forecasts & reports, Grocery market value in the United Kingdom (UK) 2004-2027, United Kingdom: grocery retail market value 2020-2027, by channel, Average cost of a shopping basket in the United Kingdom (UK) 2023, by supermarket, Impact of inflation on the growth of the food and grocery market in the UK 2015-2025, Food store retail sales in Great Britain 2005-2021, Food store retail sales value annual index in Great Britain (UK) 2012-2021, Food store retail sales value percentage change in Great Britain (UK) 2012-2021, Weekly retail sales in food stores in Great Britain (UK) 2014-2022, Tesco sales growth year-on-year in Great Britain 2015-2022, Sainsbury's sales growth year-on-year in Great Britain 2014-2022, Asda sales growth year-on-year in Great Britain 2014-2022, Morrisons sales growth year-on-year in Great Britain 2015-2022, The Co-operative sales growth year-on-year in Great Britain 2015-2023, Waitrose sales growth year-on-year in Great Britain 2015-2022, Iceland sales growth year-on-year in Great Britain 2015-2022, Tesco stores numbers in the United Kingdom (UK) 2022/23, by type, Number of Morrisons stores in the United Kingdom 2009-2021, Co-operative Group Ltd food stores in the United Kingdom (UK) 2011-2022, Number of Waitrose stores in the United Kingdom (UK) 2009-2023, Number of Marks & Spencer stores 2010-2022, by region, Share of new supermarkets opened by discount brands in the UK 2011-2021, Aldi sales growth year-on-year in Great Britain 2014-2022, Lidl sales growth year-on-year in Great Britain 2014-2022, Turnover of Lidl in the United Kingdom (UK) 2012-2021, Number of employees of Lidl in the United Kingdom (UK) 2012-2021, Number of Aldi Sd store branches in the United Kingdom (UK) 2013-2022, Grocery shopping by store brand in the UK 2023, Online grocery & beverage shopping by store brand in the UK 2023, Reasons to prefer online or offline grocery shopping in the UK 2022, Grocery shopping channels in the UK 2022, by age group, Leading three grocery retailers in Germany 2013, by food retail format market share, Revenue of ICA retail stores in Sweden 2020, by region, Number of ICA retail stores in Sweden 2020, by region, Number of Coop retail stores in Sweden 2020, by region, Favorite supermarket for store design in the United Kingdom (UK) 2014, Most profitable supermarket chain stores in the United States as of 2017, by revenue, Number of Axfood retail stores in Sweden 2020, by region, Revenue of Axfood retail stores in Sweden 2020, by region, Number of Rimi stores in the Baltic states 2021, by country, Sales of Rimi stores in the Baltic states 2021, by country, Spar: customer evaluation of performance in the United Kingdom (UK) 2015, Costcutter: customer evaluation of performance in the United Kingdom (UK) 2015, Londis: customer evaluation of performance in the United Kingdom (UK) 2015, One Stop convenience: customer evaluation of performance in the United Kingdom 2015, Everyday Retail's sales revenue South Korea 2014-2022, Number of hypermarkets in Romania 2021, by store brand, Find your information in our database containing over 20,000 reports, 29.4 billion British pounds in retail sales. Although EPS is decreased, the company has increased the DPS from 10.2 pence to 11 pence which can be deemed as the action to keep the shareholders confidence. . However, in 2016 Sainsburys noted a rise by 1.3%, what gives good prognosis for the investors because the company is able to pay the dividends and loan for the creditors. The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets. Free resources to assist you with your university studies! It has shown the ability to generate cash to cover interest and the financial stability of the business. From 2012 till 2014, the firm converted funds from purchase of assets into net income effectively; however, in 2015 there was a significant fall by 5.9% what indicates that the company couldnt manage successfully the assets to generate profits in that year. "Percentage change in sales at Sainsbury's in Great Britain compared to a year earlier from September 2014 to December 2022*." Albeit the pre-tax profit has reduced in year 2019 which affected by the debt reduction policy, the company is generating net cash and has lesser net finance cost (p. 99). Quick Ratio 0.52. Warning! JSAIY has been successfully added to your Stock Email Alerts list. Typically, short-term creditors will prefer a high current ratio because it reduces their overall risk. But, there are incorrect solutions. The grey bar indicates the Current Ratio's extreme value range as defined by GuruFocus. The ratio is regarded as a test of liquidity for a company. In . All values GBP Millions. Companies with a P/E ratio over 30 or a negative one are generaly seen as "growth stocks" meaning that investors typically expect the company to grow or to become profitable in the future. The gearing ratio has increased by 9% due to the long-term debts rising faster than the capital employed during the period from 2003 to 2004. Profitability Ratios (Base on data contained in Appendix A). Having a increasing rise in the gearing ratio could cause problems for a, Sainsburys due to the difficult marker. The capital increase has left a dilutive effect on the income until the next stores mature. The quick ratio is almost identical with the current ratio; however, it is considered a . The source did not provide data for all periods. Due to market the company does not have huge profit margins, long term debt and could make them more likely to, Lower interest rates would mean that Sainsburys would, Username is too similar to your e-mail address, Busines studies a level sainsburys data questions. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. MCLANEY, E. and ATRILL, P., 2002. However, the merge has been blocked by CMA in year 2019 and the P/E ratio is likely to decrease in year 2020. Please click on the following links to see related term pages. Describe how Monsanto became so influential in the chemical and agricultural One of the things that heightened the powe 1. Supermarket sweep-up for Sainsburys. From 2012 till 2014, the ratio was on similar level whose average was 2.7%; nonetheless in 2017, the Sainsburys ratio plummeted by 3.6%, what indicates that the control of expenses was ineffective (managements inefficiency). DO NOT OUTLINE PROCEDURES.This section of the case analysis is where alternative solutions are explored. The debt/equity ratio can be defined as a measure of a company's financial leverage calculated by dividing its long-term debt by stockholders' equity. Stability of the business in a long-term Run it reduces their overall risk analysis Sainsbury & # x27 s... Alerts ) please log in with your university studies is updated, are! 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Information posted on GuruFocus.com represent a recommendation to buy or sell a security as a food...