Sainsbury in Comparison with Tesco

First we need to explore what the two businesses actually do in terms of how they make their money. We will start with Tesco; Tesco are an enormous business with their core activity being retail. However with the popularity of the brand name and their positive image they have been able to differentiate and branch out into different markets, some of these peripheral activities include: ‘Tesco Mobile (Tesco’s mobile network) and more recently Tesco Bank

In the following report we will be going over our analysis and findings during the process of our study of Sainsbury’s internal and external environment.

Return on equity tells you how effectively a company is using the dollars invested in it by stockholders. ROE is the most often quoted single statistic when describing a firm 's performance. It is also one of the statistics considered to be most useful by stockholders.

In general, Tesco showed a better growth margin than Morrison in the two years by improving CR by 0.18:1 from 2008 to 2009.

Hershey Foods profit margin ratio 13.3% represents a low favorable return on each dollar of sales. As for Tootsie Roll Industries the ratio is 15.3% which is low. However, Hershey Foods ratio is less favorable than Tootsie Roll Industries.

J. Rate of return on common stockholder’s equity: The ratio of return on common stockholder’s equity measures rate of return on the interest of ownership for the common stock owners. Company G’s rate of return ratio diminished (20.20% down to 18.46%). Although percentage decreased does not represents a negative, compared to quartile benchmarks of 12.80% and 16.30%. Rate of Return on Common Stockholder’s Equity

Financial performance measures, such as operating income and return on investment, indicate whether the company’s strategy

The primary objective of this report is to provide a financial performance analysis of Marks & Spencer group plc. This will be achieved by a detailed ratio analysis on financial data available in latest annual report of the company for the year ended March-2013. The attention during ratio analysis will be on horizontal and vertical analysis as well as the comparison of these ratios with the industry. Moreover, the report will also give a brief business analysis of the company.

The Return on Assets ratio is a basic measure of the efficiency with which TCI allocates and manages its resources (assets) to generate earnings. With a 20% projected increase in sales, for 1996, we calculated TCI’s ROA to be 12.95%, and 12.11% for 1997. Although this isn’t an extremely high ROA, TCI will be allocating its resources very wisely with the expansion of its central warehouse. If MidBank lends them the cash they need to complete this project, their central warehouse will be able to hold more tires for their increasing sales, which will then convert into profit. A true test of TCI’s ROA will be after 1998, when the warehouse is complete, so you can see just how well they can convert an investment into profit.

Profitability ratios decreasing from 2005 to 2006 although the sales has increased substantially and the net income as well but not in the same percentage of increase due to the high reliance on debt as the interest expense increased as mentioned before.

Within this report, diligent focus will be shown to the financial year of 2010 and the final year of

Analyse’ and ‘evaluate’ the business strategy that J Sainsbury Ltd. has pursued using either Bowman’s strategic clock or Porter’s Generic Strategies framework.

During this period, the Return on Assets increased from 5.7% in 2012 to 34.6% in 2013. This implies the number of cents earned on each dollar of assets increased from 2012 to 2013. This shows that the business has become more profitable. Equally, the Return on Equity also increased from 12.0% in 2012 to 46.5% in 2013. This similarly implies that the company in 2013 was more efficient in generating income from new investment. This, also can be attributed to the sale of the Digital Business Brand which enabled the company appraise its strategic plan.

This report provides a view on operations of SAINSBURY’S , the third largest supermarket chain across United Kingdom. SAINSBURY’S , in spite of being the longest standing retail chain has been facing stiff competition from rivals like TESCO , MORRISONS. The competitors seemed to have developed at a faster pace since SAINSBURY’S has been through a difficult time in recent years and TESCO is now twice the size in terms of turnover.

Clearly, Net profit margin is decreased in 1994. In 1992 it was the highest then it is showing downward trend. It is the only cause which is lowering Return over Equity (ROE).