Financial Analysis of Sainsbury PLC Essay - 4585 Words

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†¦show more content†¦The question is, how much has its expansionary policy supported its profits whilst maintaining equilibrium with costs? Profitability Within this report, diligent focus will be shown to the financial year of 2010 and the final year of 2011 as the profitability, liquidity, efficiency, gearing ratios and working capital is examined. The profit from disposal of properties in 2010 was  £27m and  £108m in 2011 which shows a dramatic appreciation in profit when compared. Moreover, the company also showed an increase in combined profit from  £585m in 2010 to  £640m in 2011 (Sainsbury, Income Statement 2011 section). This shows that the company’s overall performance has improved over the course of 12 months by 9.4%. Further to the aforesaid points, the greater percentage of revenue was derived from the sale of products and services, standing in at  £22,943m in 2011 (Sainsbury, Income Statement 2011 section). This shows an increase in product purchases and an increase in market share (an increase of 16.1%, Telegraph, September 2011) leading to more sales, demonstrating that the firm’s strategy has worked for the financial year when compared to the sales of 2010 of  £21,421m (Sainsbury, Income Statement 2010 section). 10105011 18/10/2012 Return on Capital Employed can be defined as follows: â€Å"Return on capital employed isShow MoreRelatedIntroduction to J. Sainsbury Plc910 Words   |  4 Pages  Ã‚  Ã‚  Ã‚  Ã‚  Company analysis   Ã‚  Ã‚  Ã‚  Comparative analysis   Ã‚     Ã‚  Financial Ratio Analysis   Ã‚  Ã‚  Ã‚  Gearing/Financial Risk   Ã‚  Ã‚  Ã‚  Ã‚  Evaluation of Financial Analysis   Ã‚  Ã‚  Ã‚  Introduction The objective of financial reporting/statements is to provide information about the reporting entity’s financial performance and financial position that is useful to a wide range of users for assessing the stewardship of the entity’s management and for making economic decisions. 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