tesco vs sainsbury-imp

8/3/2019 Tesco vs Sainsbury-imp

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Net Profit Margin

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Gross Profit

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Sainsbury’s 3.03 6.83

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Non-Current Asset Turnover (Times)

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Sainsbury’s Bank plc) Tesco 2.11 2.12 ------

Sainsbury’s 2.25 1.8 2.16

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Latest Market share Data

12 weeks to 29 January2006

12 weeks to 28 January2007

Tesco 30.16% 31.50%ASDA 16.60% 16.80%Sainsburys 16.20% 16.50%

Morrisons 11.10% 11.00%somerfield 3.90% 3.70%Waitrose 3.70% 3.90%Morrisons 1.80% 1.80%Netto 0.60% 0.60%Lidl 2.00% 2.20%Aldi 2.30% 2.50%Othermultiples 1.50% 1.50%

Total Coops 4.70% 4.60%



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M a r k e t S h a r e

Retailers

Market share Data of Food and Grocery Retailers

UK 2006/ 2007

12 weeks to 29January 2006

12 weeks to 28January 2007

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Market Share Data of Food and GroceryRetailers UK 12 weeks to 28 January 2007

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Tesco Analysis 2006/2007

Sainsbury's Analysis 2006/2007

Revenue 8.07% increase 6.78% increaseGross Profit 14.36% increase 9.84% increaseProfit from Operations 20.49% increase 458.62% increase

Non-Current Assets 8.51% increase 0.09% decreaseCurrent Assets 16.76% increase 113.25% increaseCurrent Liabilities 0.63% decrease 42.66% decreaseNet Assets 11.94% increase 15.60% increaseTotal Equity 11.94% increase 15.60% increase

Net Cash from Operating Activities 3.05% decrease 19.23% increaseNet Cash used in Investing Activities 19.41% increase 271.71% increase

Net Cash used in Financing Activities 8.33% increase 21.55% increaseCash & Cash equivalents at end ofyear 21.47% decrease 189.77% increase

Inventory 31.89% increase 2.43% increaseRetained Earnings 14.84% increase 12.11% increaseEPS* basic 18.78% increase 405.26% increaseEPS* diluted 18.94% increase 397.36% increase

*as stated in Annual Report



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TESCO PLC RATIO FORMULA YEAR

20062007

Profitability Ratios:

Return On Capital Employed:

Operating Profit x 100 2648 x 100 = 25.05% 2280 x 100 = 24.14%

Non-Current Assets+Current Assets-Current Liabilities 10571 9444

Return On Shareholders Fund:Profit Before Tax x 100 2653 x 100 = 25.1% 2235 x 100 = 23.66%

Total Equity 10571 9444

Mark-up On Cost:

Gross Profit x 100 3463 x 100 = 8.89% 3028 x 100 = 8.31%

Cost of Sales 39401 36426

Gross Profit Margin:

Gross Profit x 100 3463 x 100 = 8.12% 3028 x 100 = 6.67%

Revenue 42641 39454

Net Profit Margin:


Revenue 39401 36426

Efficiency Ratios:

Creditor Days:

Trade Payables x 365 3317 x 365 = 31 days 2832 x 365 = 28 days


Debtor Days:

Trade Recievables x 365 128 x 365 = 1 day 86 x 365 = 0.79 days



Revenue 42641 39454

Inventory Turnover:Cost of Goods Sold 39401 = 20.62 times 36426 = 25 times

Goods held for Resale 1911 1457

Non-Current Asset Turnover:

Revenue 42 641 39454 = 2.12 times

Non-Current Assets 20231 = 2.11 times 18644

Non-Current Asset Turnover (minus goodwill):

Revenue 42641 39454

Non-Current Assets-Goodwill 20231 - 2045 = 2.34 times 18644 - 1525 = 2.3 times

Asset Turnover:

Revenue 42641 = 4.03 times 39454 = 4.18 times

Net Total Assets 10571 9444

Administrative Expense Turnover:

Administrative expenses x 100 907 = 2.13% 825 = 2.1%

Revenue 42641 39454

Liquidity Ratios:

Current Ratio:

Current Assets £4,168 = 0.512 : 1 £3,751 = 0.504 :1

Current Liabilities (within one year) £8,152 £7,452

Interval Measure:

Cash + short term Securites + Trade Recievables 104.2 + 1052 +768 = 31.9 days 132.5 + 1204 + 642 = 27.77 days

Average Daily Running Costs (Cost of Sales + Admin Expense +Distribution Expense - Depreciation)/ 365

39401 +(902) + (878)/365 36426 + (825) + (838)/ 365



Times Interest Covered:

Profit before Interest and Tax £2,437 = 11.28 times £1,994 = 8.27 times

Interest Charges £216 £241

Investors Ratios:

Earnings Per Share (EPS):

Profit after Interest and Tax £1,899 = 18.68 pence £1,576 = 3.38 pence

Number of Ordinary Share 10,858 10,700

Price / Earnings Ratio:

Current Market Price per Share 480.75 =27.50 penceEarnings Per Share 17.48 pence

Dividend Cover:

Profit after Interest and Tax £1,899 = 4.06 times £1,576 = 3.57 times

Total Dividend £467 £441

Dividend Yield:

Dividend Per Share (Grossed up for tax) X 100 9.64 = 2.005% 8.63 = 1.795%Current Market Price Per Share 480.75 pence 480.75 pence



J SAINSBURY PLC RATIO ANALYSIS YEAR

20062007

Profitability Ratios:

Return On Capital Employed:

Operating Profit x 100 520 x 100 = 7.69% 229 x 100 2.99%

Non-Current Assets+Current Assets-Current Liabilities 6855 7937

Return On Shareholders Fund:

Profit Before Tax x 100 477 x 100 = 11.07% 104 x 100 = 2.62%

Total Equity 4349 3965

Mark-up On Cost:

Gross Profit x 100 1172 x 100 =7.33% 1067 x 100 = 7.12%


Gross Profit Margin:

Gross Profit x 100 1172 x 100 =6.83% 1067 x 100 = 6.64%

Revenue 17151 16061

Net Profit Margin:


Revenue 17151 16061

Efficiency Ratios:

Creditor Days:

Trade Payables x 365 1706 x 365 = 39 days 1419 x 365 = 35days


Debtor Days:

Trade Recievables x 365 30 x 365 = 0.64 days 33 x 365 = 0.75 days

Revenue 17151 16061



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Inventory Turnover:

Cost of Goods Sold 15979 = 27.08 times 14994 = 26.03 timesGoods held for Resale 590 576

Non-Current Asset Turnover:


Non-Current Assets 7636 8902

Non-Current Asset Turnover (minus goodwill):


Non-Current Assets-Goodwill 7461 8711

Asset Turnover:


Net Total Assets 4349 3965

Administrative Expense Turnover:

Administrative expenses x 100 669 = 3.90 % 839 = 5.22 %

Revenue 17151 16061

Inventory Turnover:

Closing inventory 590 = 13 days 576 = 14 days

(Cost of Sales/365) (15979/365) (14994/365)

Current Asset Turnover:


Current Assets 1915 1932

Non-Current Asset Turnover (minus Sainsbury Bank Customers):

Revenue 16061 = 2.16 times

Non-Current Assets-Sainsbury Bank Customers 7429

Liquidity Ratios:



Current Ratio:

Current Assets £1,915 = 0.703 : 1 £3,820 = 0.794 :1

Current Liabilities (within one year) £2,721 £4,810

Interval Measure:

Cash + short term Securites + Trade Recievables £1,128 + £363 + £30 = 37.43 days £1,028 + £236 + £33 = 34.54 days

Average Daily Running Costs (Cost of Sales + Admin Expense +Distribution Expense - Depreciation)/ 365

(£15979 + (£669) -£479)/365 (£14,994 + (£839) - £449)/365

Times Interest Covered:

Profit before Interest and Tax £584 = 5.45 times £259 = 1. 67 timesInterest Charges £107 £155

Investors Ratios:

Earnings Per Share (EPS):

Profit after Interest and Tax £324 = 18.68 pence £58 = 3.38 pence

Number of Ordinary Share 1,734 1,711

Price / Earnings Ratio:

Current Market Price per Share 442.25 pence =23.68 pence

Earnings Per Share 18.68 pence

Dividend Cover:

Profit after Interest and Tax £324 = 2.31 times £58 = 0.44 times

Total Dividend £140 £131

Dividend Yield:

Dividend Per Share (Grossed up for tax) X 100 7.35 = 1.66% 5.85 = 1.32%

Current Market Price Per Share 442.25 pence 442.25

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