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J Sainsbury Plc

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1. 1 Executive Summary The reason of writing this report is to compare the J Sainsbury supermarket plc at the year 2009 and 2010 to know the accounting ratio is used in estimate the financial performance. This report prepared by Velavan Palaniandy and Nguyen 2. Introduction The report has been written to compare and comment on the financial performance and financial position in J Sainsbury supermarket plc. The accounting ratio is can identify the financial performance is decline or raise, easily know that the company is running on profit or loss. Moreover, the ratios also show that the strength and weakness of the company or business. The accounting ratio is liquidity, profitability, efficiency, gearing and …show more content…

Investment Earnings per share Earnings per share is the relationship between profits attributed to ordinary share excluded tax, interest dividends to preference shares and weighted are ordinary share in issue during the year. Earnings per share of J Sainsbury had increased 16.6 in 2009 to 32.1 in 2010. The increment of J Sainsbury is due to the revaluation of properties within the joint ventures (J Sainsbury, 2010). The price earnings ratio rose shows better confidence in the inventory market for the new stage of profit. Dividend per share The amount of dividend per share is the cash sum paid by the company to its shareholder (Weetman, 2006). Dividend per share of J Sainsbury was $13.2 in 2009 and increased to $14.2 in 2010. This is because the Board has recommended a final dividend of 10.2 pence per share, which will be paid on 16 July 2010 to shareholders on the Register of Member at the close of business on 21 May 2010.( J Sainsbury, 2010). Dividend cover “The dividend cover ratio tells us how easily a business can pay its dividend from profits. A high dividend cover means that the company can easily afford to pay the dividend and a low value means that the business might have difficulty paying a dividend” (biz/ed, 2011). The dividend cover of J Sainsbury was increased 0.94 between the two years. This dividend cover is low because the earnings per share of J Sainsbury is low. Therefore, J

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