Financial Analysis of Sainsbury

Added on - 19 Sep 2019

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Financial AnalysisMarks and Spencer and Sainsbury’sFinancial Analysis of the Marks and Spencer and Sainsburys are both the leading company inFood Industry. Though they have various other chains but the Food industry is one the mostcaliber product for the company. So, for the better analysis of the Financial Position of both thecompany, the analysis has been done by both methods, Horizontal Basis and Vertical Analysis.Horizontal Analysis is an analysis of accounts by taking a year as a base and comparing thefinancial position of next years. So, as comparing is to be done for last 3 years, so as annexedfirst Increase/Decrease has been calculated for year 2015-16 and for 2015-16. The Same analysisis done for both the rivalry companies. This analysis is usually done when it is required to noticethe growth of different accounts in every next years.Further Vertical Analysis is usually done by taking each element of balance sheet and comparingwith the total of the value of that element, so such percentage will be stated in percentage to totalsum of the financial position.As shown in the Chart, the Horizontal Analysis of Marks and Spencer and Sainsburrys has beenpresented for last 2 years.1234567-80.000-60.000-40.000-20.0000.00020.00040.00060.00080.000Horizontal BasisAs at 2 April, 2016As at 2 April, 2015
12345678-50.0000.00050.000100.000150.000200.000Horizontal Analysis of SainsburryAs at 2 April, 2016As at 2 April, 2015Chart: 1 Horizontal AnalysisAs shown from the analysis the rivalry company Sainsburry has a higher growth than thecompany. Company M&A, has increasing and decreasing trend during 2015 and 2016 fromvarious elements of Liabilities and Assets, taken from the financial position.The similar analysis has been obtained from the Vertical Analysis, which has been presentedherewith in form of Assets and Liabilities of both the companies:Assets Analysis:M&A123456701020304050607000000009.4759.310.189.440.233.792.9210.4761.380.199.730.143.932.5110.2365.040.2010.700.223.922.30Vertical Analysis of AssetsUnnamed Series 1As at 2 April, 2016As at 2 April, 2015As at 2 April, 2014
Sainsbury’s123450.0010.0020.0030.0040.0050.0060.0070.00Assets Vertical ChartAs at 2 April, 2016As at 2 April, 2015As at 2 April, 2014Chart:2 Vertical Analysis (Assets)Liabilities ChartM&S
Trade andotherpayablesProvisionCurrent taxliabiltiesTrade andotherpayablesProvisionsDeferredtaxliabilitiesEquity0.005.0010.0015.0020.0025.0030.0035.0032.140.281.497.011.036.7111.7832.870.9212.816.400.646.3112.8832.580.860.766.430.604.6715.08Vertical Analysis of Liabilties201620152014Sainsbury’s12345670.005.0010.0015.0020.0025.0030.0035.00Liability Chart Vertical AnalysisAs at 2 April, 2016As at 2 April, 2015As at 2 April, 2014Chart: 3 Vertical Analysis (Liability)