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S/F/284. Financial performance of Sainsbury's and Tesco

WORDS:
1600
DATE:
2011
PRICE:
19.99 GBP

This paper evaluates the financial performance of Sainsbury’s and its competitor Tesco focusing on the period between the years 2005-2009. The profitability of each company is examined by looking at the return on capital employed and on equity, the gross profit margin, and the way in which the margin is operated. Liquidity is calculated through analysis of the working capital and quick asset ratio, as well as the debtor’s payment period. The working capital efficiency is examined thorough analysis of the credit card payment period, and asset turnover. Gearing ratio and fixed interest cover are looked at to examine both companies long tem financial structure. The companies from the view of the investors are studied by looking at ratio analyses. Conclusions are made regarding which company had the best financial performance during 2005-2009.

 

KEYWORDS: financial performance, Sainsbury’s, Tesco, profitability, return on capital employed, return on equity, the gross profit margin, Liquidity, capital ratio, quick asset ratio, capital efficiency, asset turnover, Gearing ratio, fixed interest cover, financial structure, investors,

 
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