THE MANAGE FINANCIAL PERFORMANCE
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Running head: MANAGE FINANCIAL PERFORMANCE
Manage Financial Performance
Name of the Student:
Name of the University:
Author’s Note:
Manage Financial Performance
Name of the Student:
Name of the University:
Author’s Note:
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1MANAGE FINANCIAL PERFORMANCE
Table of Contents
Introduction......................................................................................................................................2
Financial Ratio Analysis: Profitability Ratio:..................................................................................2
Financial Ratio Analysis: Liquidity Ratio.......................................................................................5
Financial Ratio Analysis: Efficiency Ratio.....................................................................................6
Financial Ratio Analysis: Gearing Ratio.........................................................................................8
Conclusion and Recommendations..................................................................................................9
References......................................................................................................................................10
Appendix A: Financial Ratio Analysis..........................................................................................12
Appendix B: Vertical Statement Analysis of Sainsbury................................................................13
Appendix C: Vertical Statement Analysis: TESCO Company......................................................17
Appendix D: Horizontal Statement Analysis: Sainsbury Plc........................................................22
Appendix E: Horizontal Statement Analysis: TESCO Company..................................................26
Appendix F: Sainsbury Key Ratio.................................................................................................30
Table of Contents
Introduction......................................................................................................................................2
Financial Ratio Analysis: Profitability Ratio:..................................................................................2
Financial Ratio Analysis: Liquidity Ratio.......................................................................................5
Financial Ratio Analysis: Efficiency Ratio.....................................................................................6
Financial Ratio Analysis: Gearing Ratio.........................................................................................8
Conclusion and Recommendations..................................................................................................9
References......................................................................................................................................10
Appendix A: Financial Ratio Analysis..........................................................................................12
Appendix B: Vertical Statement Analysis of Sainsbury................................................................13
Appendix C: Vertical Statement Analysis: TESCO Company......................................................17
Appendix D: Horizontal Statement Analysis: Sainsbury Plc........................................................22
Appendix E: Horizontal Statement Analysis: TESCO Company..................................................26
Appendix F: Sainsbury Key Ratio.................................................................................................30
2MANAGE FINANCIAL PERFORMANCE
To: Board of Directors of Sainsbury PLC
From: Reporting Accountant
Date: 30th December 2019.
Introduction
The financial analysis of the Sainsbury Plc has been done for a sum of last five years whereby
relevant changes in the financials of the Company has been well accounted and taken into
consideration. The key competitors of the company include TESCO, both the analyzed company
operates as a multinational grocery company operating in the retail industry. The financial
analysis for the Sainsbury Company in particular would be done using ratio analysis whereby
liquidity, profitability, efficiency and activity ratios would be analyzed for the company in
particular (Guo and Wang 2019).
Financial Ratio Analysis: Profitability Ratio:
Table 1: Profitability Ratio
To: Board of Directors of Sainsbury PLC
From: Reporting Accountant
Date: 30th December 2019.
Introduction
The financial analysis of the Sainsbury Plc has been done for a sum of last five years whereby
relevant changes in the financials of the Company has been well accounted and taken into
consideration. The key competitors of the company include TESCO, both the analyzed company
operates as a multinational grocery company operating in the retail industry. The financial
analysis for the Sainsbury Company in particular would be done using ratio analysis whereby
liquidity, profitability, efficiency and activity ratios would be analyzed for the company in
particular (Guo and Wang 2019).
Financial Ratio Analysis: Profitability Ratio:
Table 1: Profitability Ratio
3MANAGE FINANCIAL PERFORMANCE
Profitability aspects of the company has been well analysed with the help of the key ratio’s like
Return on Shareholder’s fund, Return on Capital Employed, EBIT Margin, Net Profit & Gross
Profit Ratio has been well taken into consideration. The decrease in the profitability aspects of
the company has been considerably due to increase in the cost of sales or operating expenses
incurred. On the other hand, the net profit margin of the company also has shown a considerable
decrease which has been cyclical (Adewuyi 2016). It is important to note that the profitability
aspects of the company has been a bit volatile in the period 2015-2017 and the same were due to
high cost of sales incurred in this period at the same increase in administrative and operating
expenses of the company were considerably to high which in turn degraded the profitability
aspects of the company. On the other hand, the competitor benchmark which is Tesco Company
has shown a well consistent performance in terms of maintain their profitability and in turn
improving the profitability aspects of the company in the trend period of five years.
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013 Tesco
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
Profitability Ratio
Return on Shareholders Funds (%) Return on Capital Employed (%) Return on Total Assets (%)
Profit margin (%) Gross margin (%)
The gross profitability of the company has seen a slight improvement in the year 2017-2019 but
the same has been slightly volatile due to higher percentage increase in the cost of sales of the
company in contrast to the increase in the revenue of the company.
Profitability aspects of the company has been well analysed with the help of the key ratio’s like
Return on Shareholder’s fund, Return on Capital Employed, EBIT Margin, Net Profit & Gross
Profit Ratio has been well taken into consideration. The decrease in the profitability aspects of
the company has been considerably due to increase in the cost of sales or operating expenses
incurred. On the other hand, the net profit margin of the company also has shown a considerable
decrease which has been cyclical (Adewuyi 2016). It is important to note that the profitability
aspects of the company has been a bit volatile in the period 2015-2017 and the same were due to
high cost of sales incurred in this period at the same increase in administrative and operating
expenses of the company were considerably to high which in turn degraded the profitability
aspects of the company. On the other hand, the competitor benchmark which is Tesco Company
has shown a well consistent performance in terms of maintain their profitability and in turn
improving the profitability aspects of the company in the trend period of five years.
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013 Tesco
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
Profitability Ratio
Return on Shareholders Funds (%) Return on Capital Employed (%) Return on Total Assets (%)
Profit margin (%) Gross margin (%)
The gross profitability of the company has seen a slight improvement in the year 2017-2019 but
the same has been slightly volatile due to higher percentage increase in the cost of sales of the
company in contrast to the increase in the revenue of the company.
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4MANAGE FINANCIAL PERFORMANCE
The net profitability of the Sainsbury Company on the other hand, has been a bit volatile due to
higher cash outflows which the company has experienced in response to the cash inflow incurred
by the company. The net profitability reported by the company was around 3.38% in the year
2013, which has well decreased to around 0.82% in the year 2019. On the other hand TESCO
had a margin of about 2.62% which has been well consistent.
The fall in the net profitability of the company also lead to the fall in the return generated on the
shareholder’s equity fund for the company for the period 2013-2019. The ROE for the Sainsbury
Company was around 13.74% in the year 2013, which has well decreased to around 3.08%. On
the other hand, TESCO had a ROE of about 11.27% which is considerably much higher than
Sainsbury.
Return on total asset marking the efficiency of the management of the company in well
maintaining the assets of the company. The return generated by the company by utilizing the
assets has been around 6.21% in the year 2013, which has decreased to around 1.15% in the year
2019.
Return on Capital Employed reflecting the total return generated by the company on the total
asset deployed has been around 8.23% in the year 2013 which has fallen down to around 1.15%
in the year 2015. The fall in the return can be well contributed to the fact that the profitability of
the company has well fallen and this has been particularly due to the increase in the operational
expenses of the company.
Appendix C, Vertical Analysis of the Sainsbury Company has been well conducted with the help
of the Comprehensive Income statement of the company. The analysis has been done in
particular for the purpose of analyzing the cash flows whereby tangible assets or fixed asset of
The net profitability of the Sainsbury Company on the other hand, has been a bit volatile due to
higher cash outflows which the company has experienced in response to the cash inflow incurred
by the company. The net profitability reported by the company was around 3.38% in the year
2013, which has well decreased to around 0.82% in the year 2019. On the other hand TESCO
had a margin of about 2.62% which has been well consistent.
The fall in the net profitability of the company also lead to the fall in the return generated on the
shareholder’s equity fund for the company for the period 2013-2019. The ROE for the Sainsbury
Company was around 13.74% in the year 2013, which has well decreased to around 3.08%. On
the other hand, TESCO had a ROE of about 11.27% which is considerably much higher than
Sainsbury.
Return on total asset marking the efficiency of the management of the company in well
maintaining the assets of the company. The return generated by the company by utilizing the
assets has been around 6.21% in the year 2013, which has decreased to around 1.15% in the year
2019.
Return on Capital Employed reflecting the total return generated by the company on the total
asset deployed has been around 8.23% in the year 2013 which has fallen down to around 1.15%
in the year 2015. The fall in the return can be well contributed to the fact that the profitability of
the company has well fallen and this has been particularly due to the increase in the operational
expenses of the company.
Appendix C, Vertical Analysis of the Sainsbury Company has been well conducted with the help
of the Comprehensive Income statement of the company. The analysis has been done in
particular for the purpose of analyzing the cash flows whereby tangible assets or fixed asset of
5MANAGE FINANCIAL PERFORMANCE
the company comprised of almost 84.92% of the total assets reported which has decreased to
around 66.39% in the year 2019. On the other hand, TESCO has maintained the proportion
between non-current asset to current asset to 75:25 ratio.
The profitability ratios analyzed for the Tesco Company has been well analyzed which states
from the above analysis that the Sainsbury Company must take crucial steps in well improving
the profitability position of the company. Controlling expenses and increasing the revenue base
by diversifying the product base can be the best available option for the management.
Financial Ratio Analysis: Liquidity Ratio
Liquidity Ratio would be better analyzed with the help of the current and quick ratio for the
company which will show the coverage of current assets with respect to current liability stated.
The current ratio has improved from the company in the trend period analyzed whereby the
company has shown a considerable improvement but the same is well below the industry
standard level which is around 2 times (Zentes, Morschett and Schramm-Klein 2017). It is
important that the company improve the current assets with respect to the current liabilities that
has been presented in the financials of the company for the stated year. Improvement in current
ratio or liquidity position of the company will be helping the company in well maintain the
the company comprised of almost 84.92% of the total assets reported which has decreased to
around 66.39% in the year 2019. On the other hand, TESCO has maintained the proportion
between non-current asset to current asset to 75:25 ratio.
The profitability ratios analyzed for the Tesco Company has been well analyzed which states
from the above analysis that the Sainsbury Company must take crucial steps in well improving
the profitability position of the company. Controlling expenses and increasing the revenue base
by diversifying the product base can be the best available option for the management.
Financial Ratio Analysis: Liquidity Ratio
Liquidity Ratio would be better analyzed with the help of the current and quick ratio for the
company which will show the coverage of current assets with respect to current liability stated.
The current ratio has improved from the company in the trend period analyzed whereby the
company has shown a considerable improvement but the same is well below the industry
standard level which is around 2 times (Zentes, Morschett and Schramm-Klein 2017). It is
important that the company improve the current assets with respect to the current liabilities that
has been presented in the financials of the company for the stated year. Improvement in current
ratio or liquidity position of the company will be helping the company in well maintain the
6MANAGE FINANCIAL PERFORMANCE
business operations of the company. The quick ratio of the company has been around 0.49 times
in the year 2013, which has almost remained the same in the year 2019 to around 0.50 times. On
the other hand, when comparing the same from the competitor’s ratio the current ratio of the
Tesco Company has been comparatively lower than Sainsbury Company (Lukić 2016).
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013 Tesco
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
Liquidity Ratio
Current ratio (x) Liquidity ratio (x)
Financial Ratio Analysis: Efficiency Ratio
business operations of the company. The quick ratio of the company has been around 0.49 times
in the year 2013, which has almost remained the same in the year 2019 to around 0.50 times. On
the other hand, when comparing the same from the competitor’s ratio the current ratio of the
Tesco Company has been comparatively lower than Sainsbury Company (Lukić 2016).
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013 Tesco
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
Liquidity Ratio
Current ratio (x) Liquidity ratio (x)
Financial Ratio Analysis: Efficiency Ratio
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7MANAGE FINANCIAL PERFORMANCE
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013 Tesco
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
200.00
Efficiency Ratio
Net Assets Turnover (x) Fixed Assets Turnover (x) Interest Cover (x)
Stock Turnover (x) Debtors Turnover (x) Debtor Collection (days)
Creditors Payment (days)
Efficiency Ratios
Net Assets Turnover (x) 2.83 2.43 2.35 2.29 2.47 2.45 2.43 2.25
Fixed Assets Turnover (x) 2.11 2.01 1.95 1.88 1.98 1.97 2.16 1.76
Interest Cover (x) 3.41 3.92 4.70 4.28 0.60 6.65 6.55 4.12
Stock Turnover (x) 16.40 15.72 14.77 24.28 23.85 23.83 23.61 24.42
Debtors Turnover (x) 8.37 8.18 9.39 13.12 13.99 14.47 182.05 106.87
Debtor Collection (days) 43.62 44.60 38.86 27.81 26.10 25.22 2.00 3.42
Creditors Payment (days) 98.71 96.44 91.44 79.32 84.19 28.13 29.89 32.84
Efficiency of the company has been well measured with the help of the net asset turnover
and fixed asset turnover ratio of the company. The asset turnover ratio indicating the amount of
sales that has been done by the company by utilizing the total asset that has been deployed is
around 2.43 times in the year, which has increased to around 2.83 times in the year 2019. The
increase in the ratio has been probably due to increase in the sales of the company in contrast to
the assets that has been deployed by the company (Sorrentino et al., 2018).
The fixed asset turnover ratio on the other hand is also much better of Sainsbury Company than
Tesco Company marking the efficiency of the management of the company in well generating
sales with the amount of assets that has been deployed (Sainsbury 2019).
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013 Tesco
0.00
20.00
40.00
60.00
80.00
100.00
120.00
140.00
160.00
180.00
200.00
Efficiency Ratio
Net Assets Turnover (x) Fixed Assets Turnover (x) Interest Cover (x)
Stock Turnover (x) Debtors Turnover (x) Debtor Collection (days)
Creditors Payment (days)
Efficiency Ratios
Net Assets Turnover (x) 2.83 2.43 2.35 2.29 2.47 2.45 2.43 2.25
Fixed Assets Turnover (x) 2.11 2.01 1.95 1.88 1.98 1.97 2.16 1.76
Interest Cover (x) 3.41 3.92 4.70 4.28 0.60 6.65 6.55 4.12
Stock Turnover (x) 16.40 15.72 14.77 24.28 23.85 23.83 23.61 24.42
Debtors Turnover (x) 8.37 8.18 9.39 13.12 13.99 14.47 182.05 106.87
Debtor Collection (days) 43.62 44.60 38.86 27.81 26.10 25.22 2.00 3.42
Creditors Payment (days) 98.71 96.44 91.44 79.32 84.19 28.13 29.89 32.84
Efficiency of the company has been well measured with the help of the net asset turnover
and fixed asset turnover ratio of the company. The asset turnover ratio indicating the amount of
sales that has been done by the company by utilizing the total asset that has been deployed is
around 2.43 times in the year, which has increased to around 2.83 times in the year 2019. The
increase in the ratio has been probably due to increase in the sales of the company in contrast to
the assets that has been deployed by the company (Sorrentino et al., 2018).
The fixed asset turnover ratio on the other hand is also much better of Sainsbury Company than
Tesco Company marking the efficiency of the management of the company in well generating
sales with the amount of assets that has been deployed (Sainsbury 2019).
8MANAGE FINANCIAL PERFORMANCE
Interest Coverage Ratio for the company has been around 6.55 times which has decreased to
around 3.41 times in the year 2019. The decrease in the ratio well reflects that the company
might not be taking adequate measures in terms of having a sufficient amount of operating
income in terms of interest amount that is paid by the company.
Stock Turnover Ratio on the other hand, shows that the company has shown adequate measures
in terms of generating sales or maintaining the ratio of stock. The stock turnover ratio of the
Sainsbury Company has been around 23.61 times in the year 2013, which has fallen to around
16.40 times in the year 2019. The decrease in the ratio shows that the proportion of stock has
increased considerably in proportion to the COGS reported which shows that the company’s
inventory value has well increased (FATRICIA 2016).
The debtor’s collection period for the company has increased considerably high from 25.22 days
to around 43.62 days in the year 2013-2019. The decrease in the debt ratio for the company
shows that the company has well decreased the collection period, which may reduce the cash
position of the company. The creditor’s collection period for the company has also increase from
29.89 days to around 98.71 days in the trend period (Sari, Saputra and Siahaan, 2018).
Financial Ratio Analysis: Gearing Ratio
Gearing Ratios
Gearing (%) 43.25 68.16 66.72 66.38 78.26 71.73 69.98 161.26
Short Term Loans &
Overdrafts
-948,000 -763,000 -293,000 -341,000 -260,000 -534,000 -165,000 -
10,451,00
0
Long Term Debt -933,000 -
1,789,00
0
-
2,039,00
0
-
2,190,00
0
-
2,506,00
0
-
2,250,00
0
-
2,617,00
0
-8,969,000
Total Debt 1,881,000 2,552,00
0
2,332,00
0
2,531,00
0
2,766,00
0
2,784,00
0
2,782,00
0
19,420,00
0
Shareholders Funds per
employee (unit)
8,456,000 7,411,00
0
6,872,00
0
6,365,00
0
5,539,00
0
6,003,00
0
5,733,00
0
14,858,00
0
Interest Coverage Ratio for the company has been around 6.55 times which has decreased to
around 3.41 times in the year 2019. The decrease in the ratio well reflects that the company
might not be taking adequate measures in terms of having a sufficient amount of operating
income in terms of interest amount that is paid by the company.
Stock Turnover Ratio on the other hand, shows that the company has shown adequate measures
in terms of generating sales or maintaining the ratio of stock. The stock turnover ratio of the
Sainsbury Company has been around 23.61 times in the year 2013, which has fallen to around
16.40 times in the year 2019. The decrease in the ratio shows that the proportion of stock has
increased considerably in proportion to the COGS reported which shows that the company’s
inventory value has well increased (FATRICIA 2016).
The debtor’s collection period for the company has increased considerably high from 25.22 days
to around 43.62 days in the year 2013-2019. The decrease in the debt ratio for the company
shows that the company has well decreased the collection period, which may reduce the cash
position of the company. The creditor’s collection period for the company has also increase from
29.89 days to around 98.71 days in the trend period (Sari, Saputra and Siahaan, 2018).
Financial Ratio Analysis: Gearing Ratio
Gearing Ratios
Gearing (%) 43.25 68.16 66.72 66.38 78.26 71.73 69.98 161.26
Short Term Loans &
Overdrafts
-948,000 -763,000 -293,000 -341,000 -260,000 -534,000 -165,000 -
10,451,00
0
Long Term Debt -933,000 -
1,789,00
0
-
2,039,00
0
-
2,190,00
0
-
2,506,00
0
-
2,250,00
0
-
2,617,00
0
-8,969,000
Total Debt 1,881,000 2,552,00
0
2,332,00
0
2,531,00
0
2,766,00
0
2,784,00
0
2,782,00
0
19,420,00
0
Shareholders Funds per
employee (unit)
8,456,000 7,411,00
0
6,872,00
0
6,365,00
0
5,539,00
0
6,003,00
0
5,733,00
0
14,858,00
0
9MANAGE FINANCIAL PERFORMANCE
Total Debt & Equity 10,337,00
0
9,963,00
0
9,204,00
0
8,896,00
0
8,305,00
0
8,787,00
0
8,515,00
0
34,278,00
0
Gearing (debt/debt+equity) 18.20% 25.61% 25.34% 28.45% 33.31% 31.68% 32.67% 56.65%
3/9/2019 3/10/20183/11/20173/12/20163/14/20153/15/20143/16/2013 Tesco
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
18.20%
25.61% 25.34% 28.45%
33.31% 31.68% 32.67%
56.65%
Gearing (Debt/Debt+Equity Ratio)
The gearing ratio can be well compared with the help of weightage of debt that the company has
applied in contrast to the equity and asset position the company has placed. The weightage of
debt can be well assessed with the help of gearing ratio that has well decreased for the company
from 32.67% to around 18.20% in the trend period of seven year 2013-2019. On the other hand,
the competitor company has a high gearing ratio as compared to Sainsbury Company. High debt
shows high amount of financial risk and it is recommended that Sainsbury Company well reduce
the debt exposure so that the financial risk become optimal for the company.
Horizontal and Vertical Analysis
The horizontal analysis of the Sainsbury Company has been well done with the help of
the changes in the dollar amount in the financial statement of the company over a trend or a time
period. The horizontal analysis of the company was done for a trend period of seven years
Total Debt & Equity 10,337,00
0
9,963,00
0
9,204,00
0
8,896,00
0
8,305,00
0
8,787,00
0
8,515,00
0
34,278,00
0
Gearing (debt/debt+equity) 18.20% 25.61% 25.34% 28.45% 33.31% 31.68% 32.67% 56.65%
3/9/2019 3/10/20183/11/20173/12/20163/14/20153/15/20143/16/2013 Tesco
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
18.20%
25.61% 25.34% 28.45%
33.31% 31.68% 32.67%
56.65%
Gearing (Debt/Debt+Equity Ratio)
The gearing ratio can be well compared with the help of weightage of debt that the company has
applied in contrast to the equity and asset position the company has placed. The weightage of
debt can be well assessed with the help of gearing ratio that has well decreased for the company
from 32.67% to around 18.20% in the trend period of seven year 2013-2019. On the other hand,
the competitor company has a high gearing ratio as compared to Sainsbury Company. High debt
shows high amount of financial risk and it is recommended that Sainsbury Company well reduce
the debt exposure so that the financial risk become optimal for the company.
Horizontal and Vertical Analysis
The horizontal analysis of the Sainsbury Company has been well done with the help of
the changes in the dollar amount in the financial statement of the company over a trend or a time
period. The horizontal analysis of the company was done for a trend period of seven years
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10MANAGE FINANCIAL PERFORMANCE
whereby the revenue of the company has increased consistently for the company from 100% to
124% in the year 2013-2019. The gross profit of the company on the other hand, increased from
100% to 157% in the trend period. On the other hand, the net profitability of the company has
fallen from 100% to 35% in the year 2013-2019. The key reason behind a large fall in the
profitability of the company has been primarily because of the consistent rise in the expenses that
has been reported by the company. Administrative expenses of the company has increased more
than 3 times which lead to distortion of the profitability of the company (Appendix D).
3/1/2013
7/1/2013
11/1/2013
3/1/2014
7/1/2014
11/1/2014
3/1/2015
7/1/2015
11/1/2015
3/1/2016
7/1/2016
11/1/2016
3/1/2017
7/1/2017
11/1/2017
3/1/2018
7/1/2018
11/1/2018
3/1/2019
-1.00%
-0.50%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
Profit (Loss) before Tax
whereby the revenue of the company has increased consistently for the company from 100% to
124% in the year 2013-2019. The gross profit of the company on the other hand, increased from
100% to 157% in the trend period. On the other hand, the net profitability of the company has
fallen from 100% to 35% in the year 2013-2019. The key reason behind a large fall in the
profitability of the company has been primarily because of the consistent rise in the expenses that
has been reported by the company. Administrative expenses of the company has increased more
than 3 times which lead to distortion of the profitability of the company (Appendix D).
3/1/2013
7/1/2013
11/1/2013
3/1/2014
7/1/2014
11/1/2014
3/1/2015
7/1/2015
11/1/2015
3/1/2016
7/1/2016
11/1/2016
3/1/2017
7/1/2017
11/1/2017
3/1/2018
7/1/2018
11/1/2018
3/1/2019
-1.00%
-0.50%
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
Profit (Loss) before Tax
11MANAGE FINANCIAL PERFORMANCE
3/1/2013
7/1/2013
11/1/2013
3/1/2014
7/1/2014
11/1/2014
3/1/2015
7/1/2015
11/1/2015
3/1/2016
7/1/2016
11/1/2016
3/1/2017
7/1/2017
11/1/2017
3/1/2018
7/1/2018
11/1/2018
3/1/2019
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
100% 100% 100% 100% 100% 100% 100%
Turnover
The horizontal analysis of the company for the balance sheet is done whereby Tangible
Investment and Investments that has been reported by the company increased consistently for the
company in the trend period of 2013-2019. The graphical representation of the same is well
shown below:
3/1/2013
7/1/2013
11/1/2013
3/1/2014
7/1/2014
11/1/2014
3/1/2015
7/1/2015
11/1/2015
3/1/2016
7/1/2016
11/1/2016
3/1/2017
7/1/2017
11/1/2017
3/1/2018
7/1/2018
11/1/2018
3/1/2019
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
Trend Analysis
Intangible Assets Investments
Vertical Analysis on the other hand, has been done for the income statement of Sainsbury
Company has been well done by including several items of the income statement in percentage
3/1/2013
7/1/2013
11/1/2013
3/1/2014
7/1/2014
11/1/2014
3/1/2015
7/1/2015
11/1/2015
3/1/2016
7/1/2016
11/1/2016
3/1/2017
7/1/2017
11/1/2017
3/1/2018
7/1/2018
11/1/2018
3/1/2019
0.00%
20.00%
40.00%
60.00%
80.00%
100.00%
120.00%
100% 100% 100% 100% 100% 100% 100%
Turnover
The horizontal analysis of the company for the balance sheet is done whereby Tangible
Investment and Investments that has been reported by the company increased consistently for the
company in the trend period of 2013-2019. The graphical representation of the same is well
shown below:
3/1/2013
7/1/2013
11/1/2013
3/1/2014
7/1/2014
11/1/2014
3/1/2015
7/1/2015
11/1/2015
3/1/2016
7/1/2016
11/1/2016
3/1/2017
7/1/2017
11/1/2017
3/1/2018
7/1/2018
11/1/2018
3/1/2019
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
16.00%
18.00%
20.00%
Trend Analysis
Intangible Assets Investments
Vertical Analysis on the other hand, has been done for the income statement of Sainsbury
Company has been well done by including several items of the income statement in percentage
12MANAGE FINANCIAL PERFORMANCE
of revenue terms. The fixed assets of the Sainsbury Company had around 84.92% in the year
2013 of the reported total assets which has fallen to around 66.39% in the year 2019. The fall in
the proportion clearly states that the company on the other hand has increased the proportion into
current assets for improving the liquidity position of the company. On the other hand, in the
liabilities section the current liabilities portion of the company increased from 24% to around
50% in the year 2013-2019. While at the same time noncurrent liabilities has proportionally
decreased by the company.
3/1/2013
7/1/2013
11/1/2013
3/1/2014
7/1/2014
11/1/2014
3/1/2015
7/1/2015
11/1/2015
3/1/2016
7/1/2016
11/1/2016
3/1/2017
7/1/2017
11/1/2017
3/1/2018
7/1/2018
11/1/2018
3/1/2019
0.00%
20.00%
40.00%
60.00%
80.00%
Trend Analysis
Fixed Assets Series2 Current Assets
Stock & W.I.P. Stock W.I.P.
Finished Goods Trade Debtors Bank & Deposits
Other Current Assets Other Debtors Prepayments
Investments Current Assets
In the income statement section it is important to note high amount of cost of sales which
is almost around 95% has distorted the profitability levels of the company while high operational
expenses has left the company with less than 1% of the revenue earned in the form of net
profitability for the company as shown in Appendix B.
of revenue terms. The fixed assets of the Sainsbury Company had around 84.92% in the year
2013 of the reported total assets which has fallen to around 66.39% in the year 2019. The fall in
the proportion clearly states that the company on the other hand has increased the proportion into
current assets for improving the liquidity position of the company. On the other hand, in the
liabilities section the current liabilities portion of the company increased from 24% to around
50% in the year 2013-2019. While at the same time noncurrent liabilities has proportionally
decreased by the company.
3/1/2013
7/1/2013
11/1/2013
3/1/2014
7/1/2014
11/1/2014
3/1/2015
7/1/2015
11/1/2015
3/1/2016
7/1/2016
11/1/2016
3/1/2017
7/1/2017
11/1/2017
3/1/2018
7/1/2018
11/1/2018
3/1/2019
0.00%
20.00%
40.00%
60.00%
80.00%
Trend Analysis
Fixed Assets Series2 Current Assets
Stock & W.I.P. Stock W.I.P.
Finished Goods Trade Debtors Bank & Deposits
Other Current Assets Other Debtors Prepayments
Investments Current Assets
In the income statement section it is important to note high amount of cost of sales which
is almost around 95% has distorted the profitability levels of the company while high operational
expenses has left the company with less than 1% of the revenue earned in the form of net
profitability for the company as shown in Appendix B.
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13MANAGE FINANCIAL PERFORMANCE
-95.50%
-95.00%
-94.50%
-94.00%
-93.50%
-93.00%
-92.50%
-92.00%
-94.52%
-94.21%
-94.92%
-93.81% -93.77%
-93.39%
-93.08%
Cost of Sales
Conclusion and Recommendations
The analysis conducted for the company well states that the Sainsbury Company should
apply well relevant and crucial steps in well improving the profitability of the company so that
the financial strength increases for the company. On the other hand, the efficiency and liquidity
position of the company has been well maintained with better and active management of assets
and capital deployed. The analysis for Tesco Company has been well analyzed which states that
the Sainsbury Company must take crucial steps in well improving the profitability position of the
company. Controlling expenses and increasing the revenue base by diversifying the product base
can be the best available option for the management.
-95.50%
-95.00%
-94.50%
-94.00%
-93.50%
-93.00%
-92.50%
-92.00%
-94.52%
-94.21%
-94.92%
-93.81% -93.77%
-93.39%
-93.08%
Cost of Sales
Conclusion and Recommendations
The analysis conducted for the company well states that the Sainsbury Company should
apply well relevant and crucial steps in well improving the profitability of the company so that
the financial strength increases for the company. On the other hand, the efficiency and liquidity
position of the company has been well maintained with better and active management of assets
and capital deployed. The analysis for Tesco Company has been well analyzed which states that
the Sainsbury Company must take crucial steps in well improving the profitability position of the
company. Controlling expenses and increasing the revenue base by diversifying the product base
can be the best available option for the management.
14MANAGE FINANCIAL PERFORMANCE
References
Adewuyi, A.W., 2016. Ratio Analysis of Tesco Plc Financial Performance between 2010 and
2014 in Comparison to Both Sainsbury and Morrisons. Open Journal of Accounting, 5(03), p.45.
FATRICIA, R.S., 2016. SWOT ANALYSIS OF SAINSBURY’S SUPERMARKET. Jurnal
Manajemen Terapan dan Keuangan, 5(1).
Guo, L. and Wang, Z., 2019. Ratio Analysis of J Sainsbury plc Financial Performance between
2015 and 2018 in Comparison with Tesco and Morrisons. American Journal of Industrial and
Business Management, 9, pp.325-341.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. Routledge.
Lukić, R., 2016. The impact of financial expenditure on the performance of trade in Serbia.
Management Research and Practice, 8(2), pp.38-53.
Robinson, T.R., 2020. International financial statement analysis. John Wiley & Sons.
Sainsbury, D., 2019. Policy constructions, immigrants’ social rights and gender: The case of
Swedish childcare policies. Journal of European Social Policy, 29(2), pp.213-227.
Sari, A., Saputra, H. and Siahaan, A.P.U.P.U., 2018. Financial Distress Analysis on Indonesia
Stock Exchange Companies. Int. J. Innov. Res. Multidiscip. F, 4(3), pp.73-74.
Schmidgall, R.S. and DeFranco, A., 2016. How to best use financial ratios in benchmarking and
decision making in clubs: Review of the decade 2003–2012. International Journal of Hospitality
& Tourism Administration, 17(2), pp.179-197.
References
Adewuyi, A.W., 2016. Ratio Analysis of Tesco Plc Financial Performance between 2010 and
2014 in Comparison to Both Sainsbury and Morrisons. Open Journal of Accounting, 5(03), p.45.
FATRICIA, R.S., 2016. SWOT ANALYSIS OF SAINSBURY’S SUPERMARKET. Jurnal
Manajemen Terapan dan Keuangan, 5(1).
Guo, L. and Wang, Z., 2019. Ratio Analysis of J Sainsbury plc Financial Performance between
2015 and 2018 in Comparison with Tesco and Morrisons. American Journal of Industrial and
Business Management, 9, pp.325-341.
Jenkins, W. and Williamson, D., 2015. Strategic management and business analysis. Routledge.
Lukić, R., 2016. The impact of financial expenditure on the performance of trade in Serbia.
Management Research and Practice, 8(2), pp.38-53.
Robinson, T.R., 2020. International financial statement analysis. John Wiley & Sons.
Sainsbury, D., 2019. Policy constructions, immigrants’ social rights and gender: The case of
Swedish childcare policies. Journal of European Social Policy, 29(2), pp.213-227.
Sari, A., Saputra, H. and Siahaan, A.P.U.P.U., 2018. Financial Distress Analysis on Indonesia
Stock Exchange Companies. Int. J. Innov. Res. Multidiscip. F, 4(3), pp.73-74.
Schmidgall, R.S. and DeFranco, A., 2016. How to best use financial ratios in benchmarking and
decision making in clubs: Review of the decade 2003–2012. International Journal of Hospitality
& Tourism Administration, 17(2), pp.179-197.
15MANAGE FINANCIAL PERFORMANCE
Sorrentino, A., Pantaleo, A.M., Le Brun, N., Acha, S., Markides, C.N., Braccio, G., Fanelli, E.
and Camporeale, S.M., 2018. Energy performance and profitability of biomass boilers in the
commercial sector: A case study in the UK. Energy Procedia, 148, pp.639-646.
Zentes, J., Morschett, D. and Schramm-Klein, H., 2017. Monitoring Operational and Financial
Performance. In Strategic Retail Management (pp. 441-461). Springer Gabler, Wiesbaden.
Sorrentino, A., Pantaleo, A.M., Le Brun, N., Acha, S., Markides, C.N., Braccio, G., Fanelli, E.
and Camporeale, S.M., 2018. Energy performance and profitability of biomass boilers in the
commercial sector: A case study in the UK. Energy Procedia, 148, pp.639-646.
Zentes, J., Morschett, D. and Schramm-Klein, H., 2017. Monitoring Operational and Financial
Performance. In Strategic Retail Management (pp. 441-461). Springer Gabler, Wiesbaden.
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16MANAGE FINANCIAL PERFORMANCE
Appendix A: Financial Ratio Analysis
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013 Tesco
GBP GBP GBP GBP GBP GBP GBP Competitor
Profitability Ratios
Return on Shareholders Funds (%) 3.08 5.52 7.32 8.61 -1.30 14.96 13.74 11.27
Return on Capital Employed (%) 2.34 3.50 4.51 5.35 -0.75 9.19 8.23 5.90
Return on Total Assets (%) 1.15 1.86 2.55 3.23 -0.44 5.43 6.21 3.41
Profit margin (%) 0.82 1.44 1.92 2.33 -0.30 3.75 3.38 2.62
Gross margin (%) 6.92 6.61 6.23 6.19 5.08 5.79 5.48 6.48
Berry ratio (x) 1.18 1.37 1.53 1.83 1.07 3.27 2.94 2.08
EBIT margin (%) 1.08 1.82 2.45 3.01 0.34 4.21 3.81 3.37
EBITDA margin (%) 3.82 4.39 5.05 5.45 5.08 6.90 6.02 5.62
Efficiency Ratios
Net Assets Turnover (x) 2.83 2.43 2.35 2.29 2.47 2.45 2.43 2.25
Fixed Assets Turnover (x) 2.11 2.01 1.95 1.88 1.98 1.97 2.16 1.76
Interest Cover (x) 3.41 3.92 4.70 4.28 0.60 6.65 6.55 4.12
Stock Turnover (x) 16.40 15.72 14.77 24.28 23.85 23.83 23.61 24.42
Debtors Turnover (x) 8.37 8.18 9.39 13.12 13.99 14.47 182.05 106.87
Debtor Collection (days) 43.62 44.60 38.86 27.81 26.10 25.22 2.00 3.42
Creditors Payment (days) 98.71 96.44 91.44 79.32 84.19 28.13 29.89 32.84
Stock & WIP 1,929,000 1,810,000 1,775,000 968,000 997,000 1,005,000 987,000 2,617,000
Cost of sales -27,000,000 -26,574,000 -24,590,000 -22,050,000 -22,567,000 -22,562,000 -22,026,000 -59,767,000
Stock holding period (days) 26.08 24.86 26.35 16.02 16.13 16.26 16.36 15.98
13.44
Cash operating cycle 29.01 26.99 26.24 35.48 41.97 -13.35 11.52
Liquidity Ratios
Current ratio (x) 0.66 0.76 0.74 0.66 0.65 0.65 0.61 0.61
Liquidity ratio (x) 0.50 0.59 0.53 0.52 0.51 0.50 0.30 0.49
Shareholders liquidity ratio (x) 3.12 1.73 1.60 1.64 1.36 1.59 1.49 1.10
Solvency ratio (Asset based) (%) 37.45 33.68 34.82 37.50 33.49 36.29 45.16 30.29
Solvency ratio (Liability based) (%) 59.86 50.80 53.42 60.00 50.36 56.97 82.35 43.46
Asset Cover (x) 24.20 12.30 9.68 7.75 6.60 7.35 4.85 5.47
Gearing Ratios
Gearing (%) 43.25 68.16 66.72 66.38 78.26 71.73 69.98 161.26
Short Term Loans & Overdrafts -948,000 -763,000 -293,000 -341,000 -260,000 -534,000 -165,000 -10,451,000
Long Term Debt -933,000 -1,789,000 -2,039,000 -2,190,000 -2,506,000 -2,250,000 -2,617,000 -8,969,000
Total Debt 1,881,000 2,552,000 2,332,000 2,531,000 2,766,000 2,784,000 2,782,000 19,420,000
Shareholders Funds per employee
(unit)
8,456,000 7,411,000 6,872,000 6,365,000 5,539,000 6,003,000 5,733,000 14,858,000
Total Debt & Equity 10,337,000 9,963,000 9,204,000 8,896,000 8,305,000 8,787,000 8,515,000 34,278,000
Gearing (debt/debt+equity) 18.20% 25.61% 25.34% 28.45% 33.31% 31.68% 32.67% 56.65%
Per employee ratios
Profit per employee (unit) 2,240 3,375 4,238 5,060 -673 8,393 7,505 3,604
Turnover per employee (unit) 271,856 234,785 220,927 217,045 222,196 223,822 221,933 137,589
Salaries/Turnover 10.93 11.01 10.97 10.81 10.28 10.17 9.96 11.96
Average Remuneration per
employee (unit)
29,709 25,858 24,246 23,463 22,850 22,757 22,114 16,461
Shareholders Funds per employee
(unit)
72,646 61,147 57,894 58,772 51,766 56,103 54,600 31,987
Working Capital per employee (unit) -24,459 -18,416 -16,874 -21,690 -26,047 7,607 -7,552 -5,457
Total Assets per employee (unit) 194,003 181,526 166,276 156,722 154,551 154,579 120,905 105,590
Appendix A: Financial Ratio Analysis
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013 Tesco
GBP GBP GBP GBP GBP GBP GBP Competitor
Profitability Ratios
Return on Shareholders Funds (%) 3.08 5.52 7.32 8.61 -1.30 14.96 13.74 11.27
Return on Capital Employed (%) 2.34 3.50 4.51 5.35 -0.75 9.19 8.23 5.90
Return on Total Assets (%) 1.15 1.86 2.55 3.23 -0.44 5.43 6.21 3.41
Profit margin (%) 0.82 1.44 1.92 2.33 -0.30 3.75 3.38 2.62
Gross margin (%) 6.92 6.61 6.23 6.19 5.08 5.79 5.48 6.48
Berry ratio (x) 1.18 1.37 1.53 1.83 1.07 3.27 2.94 2.08
EBIT margin (%) 1.08 1.82 2.45 3.01 0.34 4.21 3.81 3.37
EBITDA margin (%) 3.82 4.39 5.05 5.45 5.08 6.90 6.02 5.62
Efficiency Ratios
Net Assets Turnover (x) 2.83 2.43 2.35 2.29 2.47 2.45 2.43 2.25
Fixed Assets Turnover (x) 2.11 2.01 1.95 1.88 1.98 1.97 2.16 1.76
Interest Cover (x) 3.41 3.92 4.70 4.28 0.60 6.65 6.55 4.12
Stock Turnover (x) 16.40 15.72 14.77 24.28 23.85 23.83 23.61 24.42
Debtors Turnover (x) 8.37 8.18 9.39 13.12 13.99 14.47 182.05 106.87
Debtor Collection (days) 43.62 44.60 38.86 27.81 26.10 25.22 2.00 3.42
Creditors Payment (days) 98.71 96.44 91.44 79.32 84.19 28.13 29.89 32.84
Stock & WIP 1,929,000 1,810,000 1,775,000 968,000 997,000 1,005,000 987,000 2,617,000
Cost of sales -27,000,000 -26,574,000 -24,590,000 -22,050,000 -22,567,000 -22,562,000 -22,026,000 -59,767,000
Stock holding period (days) 26.08 24.86 26.35 16.02 16.13 16.26 16.36 15.98
13.44
Cash operating cycle 29.01 26.99 26.24 35.48 41.97 -13.35 11.52
Liquidity Ratios
Current ratio (x) 0.66 0.76 0.74 0.66 0.65 0.65 0.61 0.61
Liquidity ratio (x) 0.50 0.59 0.53 0.52 0.51 0.50 0.30 0.49
Shareholders liquidity ratio (x) 3.12 1.73 1.60 1.64 1.36 1.59 1.49 1.10
Solvency ratio (Asset based) (%) 37.45 33.68 34.82 37.50 33.49 36.29 45.16 30.29
Solvency ratio (Liability based) (%) 59.86 50.80 53.42 60.00 50.36 56.97 82.35 43.46
Asset Cover (x) 24.20 12.30 9.68 7.75 6.60 7.35 4.85 5.47
Gearing Ratios
Gearing (%) 43.25 68.16 66.72 66.38 78.26 71.73 69.98 161.26
Short Term Loans & Overdrafts -948,000 -763,000 -293,000 -341,000 -260,000 -534,000 -165,000 -10,451,000
Long Term Debt -933,000 -1,789,000 -2,039,000 -2,190,000 -2,506,000 -2,250,000 -2,617,000 -8,969,000
Total Debt 1,881,000 2,552,000 2,332,000 2,531,000 2,766,000 2,784,000 2,782,000 19,420,000
Shareholders Funds per employee
(unit)
8,456,000 7,411,000 6,872,000 6,365,000 5,539,000 6,003,000 5,733,000 14,858,000
Total Debt & Equity 10,337,000 9,963,000 9,204,000 8,896,000 8,305,000 8,787,000 8,515,000 34,278,000
Gearing (debt/debt+equity) 18.20% 25.61% 25.34% 28.45% 33.31% 31.68% 32.67% 56.65%
Per employee ratios
Profit per employee (unit) 2,240 3,375 4,238 5,060 -673 8,393 7,505 3,604
Turnover per employee (unit) 271,856 234,785 220,927 217,045 222,196 223,822 221,933 137,589
Salaries/Turnover 10.93 11.01 10.97 10.81 10.28 10.17 9.96 11.96
Average Remuneration per
employee (unit)
29,709 25,858 24,246 23,463 22,850 22,757 22,114 16,461
Shareholders Funds per employee
(unit)
72,646 61,147 57,894 58,772 51,766 56,103 54,600 31,987
Working Capital per employee (unit) -24,459 -18,416 -16,874 -21,690 -26,047 7,607 -7,552 -5,457
Total Assets per employee (unit) 194,003 181,526 166,276 156,722 154,551 154,579 120,905 105,590
17MANAGE FINANCIAL PERFORMANCE
Appendix B: Vertical Statement Analysis of Sainsbury
VERTICAL ANALYSIS
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013
% % % % % % %
Fixed Assets
Tangible Assets 42.99% 44.99% 50.70% 57.53% 58.34% 59.73% 77.23%
Land & Buildings 34.33% 36.00% 40.28% 44.44% 46.46% 47.63% 61.69%
Fixtures & Fittings 0.00% 0.00% 0.00% 0.00% 0.00% 12.10% 0.00%
Other Fixed Assets 8.66% 8.99% 10.41% 13.09% 11.88% 0.00% 15.54%
Intangible Assets 4.62% 4.87% 3.76% 1.94% 1.97% 1.73% 1.35%
Investments 18.78% 14.39% 13.51% 14.35% 12.45% 12.12% 6.35%
Fixed Assets 66.39% 64.25% 67.97% 73.82% 72.76% 73.59% 84.92%
Current Assets
Stock & W.I.P. 8.54% 8.23% 8.99% 5.70% 6.03% 6.08% 7.77%
Stock 0.00% 0.00% 0.01% 0.00% 6.01% 6.05% 0.00%
W.I.P. 0.00% 0.00% 0.00% 0.01% 0.02% 0.02% 0.11%
Finished Goods 8.54% 8.23% 8.99% 5.70% 0.00% 0.00% 7.66%
Trade Debtors 16.75% 15.80% 14.15% 10.55% 10.28% 10.01% 1.01%
Bank & Deposits 4.96% 7.86% 5.49% 6.73% 7.77% 9.63% 4.07%
Other Current Assets 2.29% 2.85% 2.37% 2.43% 2.24% 0.37% 1.40%
Other Debtors 1.43% 2.14% 1.58% 1.80% 1.64% 0.00% 1.02%
Prepayments 0.86% 0.71% 0.79% 0.63% 0.60% 0.37% 0.38%
Investments 1.06% 1.01% 1.03% 0.77% 0.93% 0.34% 0.82%
Current Assets 33.61% 35.75% 32.03% 26.18% 27.24% 26.41% 15.08%
TOTAL ASSESTS 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Appendix B: Vertical Statement Analysis of Sainsbury
VERTICAL ANALYSIS
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013
% % % % % % %
Fixed Assets
Tangible Assets 42.99% 44.99% 50.70% 57.53% 58.34% 59.73% 77.23%
Land & Buildings 34.33% 36.00% 40.28% 44.44% 46.46% 47.63% 61.69%
Fixtures & Fittings 0.00% 0.00% 0.00% 0.00% 0.00% 12.10% 0.00%
Other Fixed Assets 8.66% 8.99% 10.41% 13.09% 11.88% 0.00% 15.54%
Intangible Assets 4.62% 4.87% 3.76% 1.94% 1.97% 1.73% 1.35%
Investments 18.78% 14.39% 13.51% 14.35% 12.45% 12.12% 6.35%
Fixed Assets 66.39% 64.25% 67.97% 73.82% 72.76% 73.59% 84.92%
Current Assets
Stock & W.I.P. 8.54% 8.23% 8.99% 5.70% 6.03% 6.08% 7.77%
Stock 0.00% 0.00% 0.01% 0.00% 6.01% 6.05% 0.00%
W.I.P. 0.00% 0.00% 0.00% 0.01% 0.02% 0.02% 0.11%
Finished Goods 8.54% 8.23% 8.99% 5.70% 0.00% 0.00% 7.66%
Trade Debtors 16.75% 15.80% 14.15% 10.55% 10.28% 10.01% 1.01%
Bank & Deposits 4.96% 7.86% 5.49% 6.73% 7.77% 9.63% 4.07%
Other Current Assets 2.29% 2.85% 2.37% 2.43% 2.24% 0.37% 1.40%
Other Debtors 1.43% 2.14% 1.58% 1.80% 1.64% 0.00% 1.02%
Prepayments 0.86% 0.71% 0.79% 0.63% 0.60% 0.37% 0.38%
Investments 1.06% 1.01% 1.03% 0.77% 0.93% 0.34% 0.82%
Current Assets 33.61% 35.75% 32.03% 26.18% 27.24% 26.41% 15.08%
TOTAL ASSESTS 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
18MANAGE FINANCIAL PERFORMANCE
Current Liabilities
Trade Creditors -37.90% -34.18% -33.29% -30.09% -33.16% -11.16% -15.03%
Short Term Loans &
Overdrafts
-4.20% -3.47% -1.48% -2.01% -1.57% -3.23% -1.30%
Bank Overdrafts -0.89% -0.01% -0.03% -0.25% -0.57% -3.07% -1.13%
Hire Purch. & Leas. (short
t.)
-0.07% -0.14% -0.12% -0.22% -0.18% -0.16% -0.17%
∟ Leasing (short t.) -0.07% -0.14% -0.12% -0.22% -0.18% -0.16% -0.17%
Other Short Term Loans -3.24% -3.32% -1.34% -1.54% -0.82% 0.00% -0.01%
Total Other Current
Liabilities
-8.46% -9.18% -8.66% -7.51% -7.13% -26.51% -8.21%
Corporation Tax -0.90% -1.12% -1.11% -0.93% -1.14% -1.14% -1.17%
Accruals & Def. Inc. (short
t.)
-3.72% -3.96% -2.46% -2.39% -1.77% -1.55% -2.24%
Other Current Liabilities -3.84% -4.10% -5.10% -4.19% -4.23% -23.82% -4.81%
Current Liabilities -50.56% -46.83% -43.44% -39.62% -41.86% -40.90% -24.54%
Net Current Assets
(Working Capital)
-16.95% -11.07% -11.40% -13.43% -14.62% -14.49% -9.46%
Net Tangible Assets
(Liab.)
44.82% 48.30% 52.80% 58.45% 56.17% 57.37% 74.12%
Working Capital needs -12.61% -10.14% -10.15% -13.84% -16.85% 4.92% -6.25%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Total Assets less Cur.
Liab.
49.44% 53.17% 56.56% 60.38% 58.14% 59.10% 75.46%
Long Term Liabilities
Long Term Debt -4.13% -8.13% -10.33% -12.90% -15.15% -13.60% -20.61%
Hire Purch. & Leas. (long t.) -0.47% -0.44% -0.58% -0.81% -1.02% -0.97% -1.09%
∟ Leasing (long t.) -0.47% -0.44% -0.58% -0.81% -1.02% -0.97% -1.09%
Other Long Term Loans -3.66% -7.69% -9.75% -12.10% -14.13% -12.63% -19.52%
Total Other Long Term
Liab.
-9.64% -8.34% -4.96% -5.42% -3.44% -3.19% -1.39%
Accruals & Def. Inc. (long
t.)
-1.46% -1.37% -1.44% 0.00% -1.55% -1.17% -1.34%
Other Long Term Liab. -8.18% -6.97% -3.52% -5.42% -1.89% -2.01% -0.06%
Provisions for Other Liab. -2.47% -1.85% -1.52% -2.16% -1.77% -1.55% -2.25%
Current Liabilities
Trade Creditors -37.90% -34.18% -33.29% -30.09% -33.16% -11.16% -15.03%
Short Term Loans &
Overdrafts
-4.20% -3.47% -1.48% -2.01% -1.57% -3.23% -1.30%
Bank Overdrafts -0.89% -0.01% -0.03% -0.25% -0.57% -3.07% -1.13%
Hire Purch. & Leas. (short
t.)
-0.07% -0.14% -0.12% -0.22% -0.18% -0.16% -0.17%
∟ Leasing (short t.) -0.07% -0.14% -0.12% -0.22% -0.18% -0.16% -0.17%
Other Short Term Loans -3.24% -3.32% -1.34% -1.54% -0.82% 0.00% -0.01%
Total Other Current
Liabilities
-8.46% -9.18% -8.66% -7.51% -7.13% -26.51% -8.21%
Corporation Tax -0.90% -1.12% -1.11% -0.93% -1.14% -1.14% -1.17%
Accruals & Def. Inc. (short
t.)
-3.72% -3.96% -2.46% -2.39% -1.77% -1.55% -2.24%
Other Current Liabilities -3.84% -4.10% -5.10% -4.19% -4.23% -23.82% -4.81%
Current Liabilities -50.56% -46.83% -43.44% -39.62% -41.86% -40.90% -24.54%
Net Current Assets
(Working Capital)
-16.95% -11.07% -11.40% -13.43% -14.62% -14.49% -9.46%
Net Tangible Assets
(Liab.)
44.82% 48.30% 52.80% 58.45% 56.17% 57.37% 74.12%
Working Capital needs -12.61% -10.14% -10.15% -13.84% -16.85% 4.92% -6.25%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Total Assets less Cur.
Liab.
49.44% 53.17% 56.56% 60.38% 58.14% 59.10% 75.46%
Long Term Liabilities
Long Term Debt -4.13% -8.13% -10.33% -12.90% -15.15% -13.60% -20.61%
Hire Purch. & Leas. (long t.) -0.47% -0.44% -0.58% -0.81% -1.02% -0.97% -1.09%
∟ Leasing (long t.) -0.47% -0.44% -0.58% -0.81% -1.02% -0.97% -1.09%
Other Long Term Loans -3.66% -7.69% -9.75% -12.10% -14.13% -12.63% -19.52%
Total Other Long Term
Liab.
-9.64% -8.34% -4.96% -5.42% -3.44% -3.19% -1.39%
Accruals & Def. Inc. (long
t.)
-1.46% -1.37% -1.44% 0.00% -1.55% -1.17% -1.34%
Other Long Term Liab. -8.18% -6.97% -3.52% -5.42% -1.89% -2.01% -0.06%
Provisions for Other Liab. -2.47% -1.85% -1.52% -2.16% -1.77% -1.55% -2.25%
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19MANAGE FINANCIAL PERFORMANCE
Deferred Tax -1.76% -1.10% -0.87% -1.40% -1.30% -1.37% -1.95%
Other Provisions -0.71% -0.75% -0.65% -0.76% -0.47% -0.18% -0.31%
Pension Liabilities 4.25% -1.17% -4.93% -2.40% -4.28% -4.46% -6.03%
Balance sheet Minorities 0.00% 0.00% 0.00% 0.00% 0.00% -0.01% -0.01%
Long Term Liabilities -12.00% -19.49% -21.75% -22.88% -24.64% -22.81% -30.30%
Net assets 37.45% 33.68% 34.82% 37.50% 33.49% 36.29% 45.16%
Shareholders Funds
Issued Capital 2.79% 2.85% 3.17% 3.24% 3.31% 3.30% 4.26%
Total Reserves 34.66% 30.83% 31.65% 34.26% 30.18% 33.00% 40.90%
Share Premium Account 5.08% 5.14% 5.67% 6.56% 6.70% 6.60% 8.47%
Profit (Loss) Account 21.09% 17.22% 16.16% 19.86% 18.49% 21.52% 31.98%
Other Reserves 8.48% 8.48% 9.81% 7.84% 4.99% 4.88% 0.45%
Shareholders Funds 37.45% 33.68% 34.82% 37.50% 33.49% 36.29% 45.16%
Total Equity and
Liabilities
100% 100% 100% 100% 100% 100% 100%
Total Debt
Deferred Tax -1.76% -1.10% -0.87% -1.40% -1.30% -1.37% -1.95%
Other Provisions -0.71% -0.75% -0.65% -0.76% -0.47% -0.18% -0.31%
Pension Liabilities 4.25% -1.17% -4.93% -2.40% -4.28% -4.46% -6.03%
Balance sheet Minorities 0.00% 0.00% 0.00% 0.00% 0.00% -0.01% -0.01%
Long Term Liabilities -12.00% -19.49% -21.75% -22.88% -24.64% -22.81% -30.30%
Net assets 37.45% 33.68% 34.82% 37.50% 33.49% 36.29% 45.16%
Shareholders Funds
Issued Capital 2.79% 2.85% 3.17% 3.24% 3.31% 3.30% 4.26%
Total Reserves 34.66% 30.83% 31.65% 34.26% 30.18% 33.00% 40.90%
Share Premium Account 5.08% 5.14% 5.67% 6.56% 6.70% 6.60% 8.47%
Profit (Loss) Account 21.09% 17.22% 16.16% 19.86% 18.49% 21.52% 31.98%
Other Reserves 8.48% 8.48% 9.81% 7.84% 4.99% 4.88% 0.45%
Shareholders Funds 37.45% 33.68% 34.82% 37.50% 33.49% 36.29% 45.16%
Total Equity and
Liabilities
100% 100% 100% 100% 100% 100% 100%
Total Debt
20MANAGE FINANCIAL PERFORMANCE
Income Statement
V
ERTICAL
ANALYSIS
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013
% % % % % % %
Turnover 100.00% 100% 100% 100% 100% 100% 100%
∟ National Turnover 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 100%
Cost of Sales -93.08% -93.39% -93.77% -93.81% -94.92% -94.21% -94.52%
Gross Profit 6.92% 6.61% 6.23% 6.19% 5.08% 5.79% 5.48%
Administration Expenses -5.97% -4.97% -4.60% -3.62% -4.76% -1.85% -1.96%
Other Operating
Income/Costs pre OP
0.13% 0.18% 0.82% 0.43% 0.02% 0.28% 0.29%
Operating Profit 1.08% 1.82% 2.45% 3.01% 0.34% 4.21% 3.81%
Other Income 0.01% 0.04% -0.14% -0.05% 0.03% 0.12% 0.10%
Total Other Income & Int.
Received
0.09% 0.11% -0.01% 0.03% 0.11% 0.20% 0.18%
Profit (Loss) before
Interest paid
1.17% 1.93% 2.44% 3.04% 0.45% 4.41% 3.99%
Interest Received 0.08% 0.07% 0.13% 0.08% 0.08% 0.08% 0.08%
Interest Paid -0.34% -0.49% -0.52% -0.71% -0.76% -0.66% -0.61%
∟ Paid to Bank 0.00% 0.00% 0.00% 0.00% 0.00% -0.63% 0.00%
∟ Paid on Leasing -0.02% -0.02% -0.03% -0.04% 0.00% -0.03% -0.03%
∟ Other Interest Paid -0.32% -0.47% -0.49% -0.67% -0.76% 0.00% -0.58%
Net Interest -0.27% -0.43% -0.39% -0.63% -0.68% -0.58% -0.53%
Profit (Loss) before Tax 0.82% 1.44% 1.92% 2.33% -0.30% 3.75% 3.38%
Taxation -0.07% -0.35% -0.48% -0.33% -0.40% -0.76% -0.75%
Profit (Loss) after Tax 0.75% 1.09% 1.44% 2.00% -0.70% 2.99% 2.63%
Profit (Loss) for period
[=Net income]
0.75% 1.09% 1.44% 2.00% -0.70% 2.99% 2.63%
Dividends -0.77% -0.75% -0.88% -1.00% -1.39% -1.34% -1.32%
Retained Profit(Loss) -0.02% 0.34% 0.55% 1.01% -2.09% 1.65% 1.31%
Income Statement
V
ERTICAL
ANALYSIS
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013
% % % % % % %
Turnover 100.00% 100% 100% 100% 100% 100% 100%
∟ National Turnover 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 100%
Cost of Sales -93.08% -93.39% -93.77% -93.81% -94.92% -94.21% -94.52%
Gross Profit 6.92% 6.61% 6.23% 6.19% 5.08% 5.79% 5.48%
Administration Expenses -5.97% -4.97% -4.60% -3.62% -4.76% -1.85% -1.96%
Other Operating
Income/Costs pre OP
0.13% 0.18% 0.82% 0.43% 0.02% 0.28% 0.29%
Operating Profit 1.08% 1.82% 2.45% 3.01% 0.34% 4.21% 3.81%
Other Income 0.01% 0.04% -0.14% -0.05% 0.03% 0.12% 0.10%
Total Other Income & Int.
Received
0.09% 0.11% -0.01% 0.03% 0.11% 0.20% 0.18%
Profit (Loss) before
Interest paid
1.17% 1.93% 2.44% 3.04% 0.45% 4.41% 3.99%
Interest Received 0.08% 0.07% 0.13% 0.08% 0.08% 0.08% 0.08%
Interest Paid -0.34% -0.49% -0.52% -0.71% -0.76% -0.66% -0.61%
∟ Paid to Bank 0.00% 0.00% 0.00% 0.00% 0.00% -0.63% 0.00%
∟ Paid on Leasing -0.02% -0.02% -0.03% -0.04% 0.00% -0.03% -0.03%
∟ Other Interest Paid -0.32% -0.47% -0.49% -0.67% -0.76% 0.00% -0.58%
Net Interest -0.27% -0.43% -0.39% -0.63% -0.68% -0.58% -0.53%
Profit (Loss) before Tax 0.82% 1.44% 1.92% 2.33% -0.30% 3.75% 3.38%
Taxation -0.07% -0.35% -0.48% -0.33% -0.40% -0.76% -0.75%
Profit (Loss) after Tax 0.75% 1.09% 1.44% 2.00% -0.70% 2.99% 2.63%
Profit (Loss) for period
[=Net income]
0.75% 1.09% 1.44% 2.00% -0.70% 2.99% 2.63%
Dividends -0.77% -0.75% -0.88% -1.00% -1.39% -1.34% -1.32%
Retained Profit(Loss) -0.02% 0.34% 0.55% 1.01% -2.09% 1.65% 1.31%
21MANAGE FINANCIAL PERFORMANCE
Appendix C: Vertical Statement Analysis: TESCO Company
VERTICAL ANALYSIS
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013
% % % % % % %
Fixed Assets
Tangible Assets 38.79% 41.28% 39.49% 40.77% 46.23% 48.82% 49.61%
Land & Buildings 34.35% 36.42% 34.01% 34.98% 40.41% 41.36% 41.60%
∟ Freehold Land 0.00% 0.00% 0.00% 29.62% 35.39% 36.74% 36.58%
∟ Leasehold Land 0.00% 0.00% 0.00% 5.36% 5.02% 4.62% 5.03%
Fixtures & Fittings 0.00% 3.91% 0.00% 4.89% 0.00% 0.00% 0.00%
Plant & Vehicles 0.00% 0.70% 0.00% 0.57% 0.00% 0.00% 0.00%
∟ Vehicles 0.00% 0.70% 0.00% 0.57% 0.00% 0.00% 0.00%
Other Fixed Assets 4.43% 0.26% 5.48% 0.33% 5.81% 7.46% 8.01%
Intangible Assets 12.77% 5.93% 5.93% 6.55% 8.53% 7.57% 8.70%
Investments 22.62% 22.19% 20.96% 18.91% 18.20% 17.53% 15.56%
Fixed Assets 74.17% 69.40% 66.38% 66.23% 72.95% 73.92% 73.88%
Current Assets
Stock & W.I.P. 5.34% 5.04% 5.02% 5.53% 6.69% 7.13% 7.47%
W.I.P. 0.01% 0.01% 0.05% 0.09% 0.30% 0.22% 0.20%
Finished Goods 5.32% 5.04% 4.96% 5.44% 6.39% 6.91% 7.27%
Trade Debtors 1.22% 1.04% 1.07% 1.13% 0.00% 0.00% 0.00%
Bank & Deposits 5.95% 9.05% 8.33% 7.02% 4.90% 5.00% 5.01%
Other Current Assets 12.09% 12.63% 11.26% 11.26% 13.46% 11.78% 11.23%
Group Loans (asset) 0.35% 0.37% 0.33% 0.41% 0.57% 0.55% 0.94%
Other Debtors 10.52% 10.94% 9.75% 9.82% 11.65% 10.43% 9.44%
Prepayments 1.21% 1.29% 1.15% 1.00% 1.21% 0.77% 0.83%
Deferred Taxation 0.01% 0.03% 0.03% 0.03% 0.04% 0.02% 0.02%
Investments 1.24% 2.84% 7.94% 8.83% 2.00% 2.18% 2.42%
Current Assets 25.83% 30.60% 33.62% 33.77% 27.05% 26.08% 26.12%
TOTAL ASSESTS 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Current Liabilities
Trade Creditors -11.72% -12.07% -10.72% -10.35% -11.48% -11.62% -12.04%
Short Term Loans &
Overdrafts
-21.31% -20.75% -20.20% -6.47% -4.59% -3.85% -1.59%
Bank Overdrafts -0.79% -0.78% -1.99% 0.00% -4.48% -1.65% -1.46%
Group Loans (short t.) -0.04% -0.06% -0.05% -0.05% -0.09% -0.04% -0.10%
Appendix C: Vertical Statement Analysis: TESCO Company
VERTICAL ANALYSIS
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013
% % % % % % %
Fixed Assets
Tangible Assets 38.79% 41.28% 39.49% 40.77% 46.23% 48.82% 49.61%
Land & Buildings 34.35% 36.42% 34.01% 34.98% 40.41% 41.36% 41.60%
∟ Freehold Land 0.00% 0.00% 0.00% 29.62% 35.39% 36.74% 36.58%
∟ Leasehold Land 0.00% 0.00% 0.00% 5.36% 5.02% 4.62% 5.03%
Fixtures & Fittings 0.00% 3.91% 0.00% 4.89% 0.00% 0.00% 0.00%
Plant & Vehicles 0.00% 0.70% 0.00% 0.57% 0.00% 0.00% 0.00%
∟ Vehicles 0.00% 0.70% 0.00% 0.57% 0.00% 0.00% 0.00%
Other Fixed Assets 4.43% 0.26% 5.48% 0.33% 5.81% 7.46% 8.01%
Intangible Assets 12.77% 5.93% 5.93% 6.55% 8.53% 7.57% 8.70%
Investments 22.62% 22.19% 20.96% 18.91% 18.20% 17.53% 15.56%
Fixed Assets 74.17% 69.40% 66.38% 66.23% 72.95% 73.92% 73.88%
Current Assets
Stock & W.I.P. 5.34% 5.04% 5.02% 5.53% 6.69% 7.13% 7.47%
W.I.P. 0.01% 0.01% 0.05% 0.09% 0.30% 0.22% 0.20%
Finished Goods 5.32% 5.04% 4.96% 5.44% 6.39% 6.91% 7.27%
Trade Debtors 1.22% 1.04% 1.07% 1.13% 0.00% 0.00% 0.00%
Bank & Deposits 5.95% 9.05% 8.33% 7.02% 4.90% 5.00% 5.01%
Other Current Assets 12.09% 12.63% 11.26% 11.26% 13.46% 11.78% 11.23%
Group Loans (asset) 0.35% 0.37% 0.33% 0.41% 0.57% 0.55% 0.94%
Other Debtors 10.52% 10.94% 9.75% 9.82% 11.65% 10.43% 9.44%
Prepayments 1.21% 1.29% 1.15% 1.00% 1.21% 0.77% 0.83%
Deferred Taxation 0.01% 0.03% 0.03% 0.03% 0.04% 0.02% 0.02%
Investments 1.24% 2.84% 7.94% 8.83% 2.00% 2.18% 2.42%
Current Assets 25.83% 30.60% 33.62% 33.77% 27.05% 26.08% 26.12%
TOTAL ASSESTS 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Current Liabilities
Trade Creditors -11.72% -12.07% -10.72% -10.35% -11.48% -11.62% -12.04%
Short Term Loans &
Overdrafts
-21.31% -20.75% -20.20% -6.47% -4.59% -3.85% -1.59%
Bank Overdrafts -0.79% -0.78% -1.99% 0.00% -4.48% -1.65% -1.46%
Group Loans (short t.) -0.04% -0.06% -0.05% -0.05% -0.09% -0.04% -0.10%
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22MANAGE FINANCIAL PERFORMANCE
Hire Purch. & Leas. (short
t.)
-0.07% -0.03% -0.02% -0.03% -0.02% -0.01% -0.01%
∟ Leasing (short t.) -0.07% -0.03% -0.02% -0.03% -0.02% -0.01% -0.01%
Other Short Term Loans -20.40% -19.89% -18.14% -6.40% 0.00% -2.14% -0.03%
Total Other Current
Liabilities
-9.13% -10.06% -11.40% -28.08% -28.73% -27.18% -24.24%
Corporation Tax -0.66% -0.75% -1.34% -0.95% -0.21% -0.98% -1.04%
Accruals & Def. Inc. (short
t.)
-2.51% -3.66% -3.35% -3.48% -3.98% -3.08% -3.66%
Social Securities & V.A.T. -1.06% -0.74% -0.68% -0.88% -0.83% -0.80% -0.88%
Other Current Liabilities -4.90% -4.90% -6.04% -22.76% -23.71% -22.33% -18.66%
Current Liabilities -42.16% -42.88% -42.32% -44.90% -44.80% -42.66% -37.87%
Net Current Assets
(Working Capital)
-16.34% -12.29% -8.70% -11.13% -17.76% -16.57% -11.75%
Net Tangible Assets
(Liab.)
45.06% 51.19% 51.75% 48.55% 46.67% 49.78% 53.43%
Working Capital needs -5.17% -5.99% -4.63% -3.69% -4.79% -4.50% -4.57%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Total Assets less Cur.
Liab.
57.84% 57.12% 57.68% 55.10% 55.20% 57.34% 62.13%
Long Term Liabilities
Long Term Debt -18.29% -22.54% -25.54% -24.40% -24.09% -18.55% -20.08%
Hire Purch. & Leas. (long t.) -0.19% -0.25% -0.22% -0.20% -0.30% -0.23% -0.24%
∟ Leasing (long t.) -0.19% -0.25% -0.22% -0.20% -0.30% -0.23% -0.24%
Other Long Term Loans -18.10% -22.30% -25.31% -24.20% -23.79% -18.32% -19.84%
Total Other Long Term
Liab.
-1.58% -2.14% -2.03% -2.02% -2.14% -1.53% -1.51%
Other Long Term Liab. -1.58% -2.14% -2.03% -2.02% -2.14% -1.53% -1.51%
Provisions for Other Liab. -2.00% -1.81% -1.69% -1.82% -2.02% -1.55% -2.55%
Deferred Tax -0.48% -0.20% -0.19% -0.31% -0.45% -1.18% -2.01%
Other Provisions -1.52% -1.61% -1.49% -1.51% -1.57% -0.36% -0.54%
Pension Liabilities -5.73% -7.32% -14.44% -7.23% -10.95% -6.37% -4.74%
Balance sheet Minorities 0.05% 0.05% 0.05% 0.02% 0.00% -0.01% -0.04%
Long Term Liabilities -27.54% -33.76% -43.64% -35.45% -39.20% -28.01% -28.93%
Net assets 30.29% 23.36% 14.04% 19.65% 15.99% 29.33% 33.20%
Shareholders Funds
Issued Capital 1.00% 0.91% 0.89% 0.93% 0.92% 0.81% 0.80%
Total Reserves 29.29% 22.45% 13.15% 18.72% 15.07% 28.53% 32.40%
Share Premium Account 10.53% 11.38% 11.11% 11.60% 11.52% 10.13% 10.01%
Hire Purch. & Leas. (short
t.)
-0.07% -0.03% -0.02% -0.03% -0.02% -0.01% -0.01%
∟ Leasing (short t.) -0.07% -0.03% -0.02% -0.03% -0.02% -0.01% -0.01%
Other Short Term Loans -20.40% -19.89% -18.14% -6.40% 0.00% -2.14% -0.03%
Total Other Current
Liabilities
-9.13% -10.06% -11.40% -28.08% -28.73% -27.18% -24.24%
Corporation Tax -0.66% -0.75% -1.34% -0.95% -0.21% -0.98% -1.04%
Accruals & Def. Inc. (short
t.)
-2.51% -3.66% -3.35% -3.48% -3.98% -3.08% -3.66%
Social Securities & V.A.T. -1.06% -0.74% -0.68% -0.88% -0.83% -0.80% -0.88%
Other Current Liabilities -4.90% -4.90% -6.04% -22.76% -23.71% -22.33% -18.66%
Current Liabilities -42.16% -42.88% -42.32% -44.90% -44.80% -42.66% -37.87%
Net Current Assets
(Working Capital)
-16.34% -12.29% -8.70% -11.13% -17.76% -16.57% -11.75%
Net Tangible Assets
(Liab.)
45.06% 51.19% 51.75% 48.55% 46.67% 49.78% 53.43%
Working Capital needs -5.17% -5.99% -4.63% -3.69% -4.79% -4.50% -4.57%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Total Assets less Cur.
Liab.
57.84% 57.12% 57.68% 55.10% 55.20% 57.34% 62.13%
Long Term Liabilities
Long Term Debt -18.29% -22.54% -25.54% -24.40% -24.09% -18.55% -20.08%
Hire Purch. & Leas. (long t.) -0.19% -0.25% -0.22% -0.20% -0.30% -0.23% -0.24%
∟ Leasing (long t.) -0.19% -0.25% -0.22% -0.20% -0.30% -0.23% -0.24%
Other Long Term Loans -18.10% -22.30% -25.31% -24.20% -23.79% -18.32% -19.84%
Total Other Long Term
Liab.
-1.58% -2.14% -2.03% -2.02% -2.14% -1.53% -1.51%
Other Long Term Liab. -1.58% -2.14% -2.03% -2.02% -2.14% -1.53% -1.51%
Provisions for Other Liab. -2.00% -1.81% -1.69% -1.82% -2.02% -1.55% -2.55%
Deferred Tax -0.48% -0.20% -0.19% -0.31% -0.45% -1.18% -2.01%
Other Provisions -1.52% -1.61% -1.49% -1.51% -1.57% -0.36% -0.54%
Pension Liabilities -5.73% -7.32% -14.44% -7.23% -10.95% -6.37% -4.74%
Balance sheet Minorities 0.05% 0.05% 0.05% 0.02% 0.00% -0.01% -0.04%
Long Term Liabilities -27.54% -33.76% -43.64% -35.45% -39.20% -28.01% -28.93%
Net assets 30.29% 23.36% 14.04% 19.65% 15.99% 29.33% 33.20%
Shareholders Funds
Issued Capital 1.00% 0.91% 0.89% 0.93% 0.92% 0.81% 0.80%
Total Reserves 29.29% 22.45% 13.15% 18.72% 15.07% 28.53% 32.40%
Share Premium Account 10.53% 11.38% 11.11% 11.60% 11.52% 10.13% 10.01%
23MANAGE FINANCIAL PERFORMANCE
Profit (Loss) Account 11.02% 9.42% 0.72% 7.44% 4.49% 19.39% 21.02%
Other Reserves 7.74% 1.64% 1.31% -0.32% -0.94% -0.99% 1.37%
Shareholders Funds 30.29% 23.36% 14.04% 19.65% 15.99% 29.33% 33.20%
Total Equity and
Liabilities
100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Income Statement
VERTICAL ANALYSIS
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013
% % % % % % %
Fixed Assets
Tangible Assets 38.79% 41.28% 39.49% 40.77% 46.23% 48.82% 49.61%
Land & Buildings 34.35% 36.42% 34.01% 34.98% 40.41% 41.36% 41.60%
∟ Freehold Land 0.00% 0.00% 0.00% 29.62% 35.39% 36.74% 36.58%
∟ Leasehold Land 0.00% 0.00% 0.00% 5.36% 5.02% 4.62% 5.03%
Fixtures & Fittings 0.00% 3.91% 0.00% 4.89% 0.00% 0.00% 0.00%
Plant & Vehicles 0.00% 0.70% 0.00% 0.57% 0.00% 0.00% 0.00%
∟ Vehicles 0.00% 0.70% 0.00% 0.57% 0.00% 0.00% 0.00%
Other Fixed Assets 4.43% 0.26% 5.48% 0.33% 5.81% 7.46% 8.01%
Intangible Assets 12.77% 5.93% 5.93% 6.55% 8.53% 7.57% 8.70%
Investments 22.62% 22.19% 20.96% 18.91% 18.20% 17.53% 15.56%
Fixed Assets 74.17% 69.40% 66.38% 66.23% 72.95% 73.92% 73.88%
Current Assets
Stock & W.I.P. 5.34% 5.04% 5.02% 5.53% 6.69% 7.13% 7.47%
W.I.P. 0.01% 0.01% 0.05% 0.09% 0.30% 0.22% 0.20%
Finished Goods 5.32% 5.04% 4.96% 5.44% 6.39% 6.91% 7.27%
Trade Debtors 1.22% 1.04% 1.07% 1.13% 0.00% 0.00% 0.00%
Profit (Loss) Account 11.02% 9.42% 0.72% 7.44% 4.49% 19.39% 21.02%
Other Reserves 7.74% 1.64% 1.31% -0.32% -0.94% -0.99% 1.37%
Shareholders Funds 30.29% 23.36% 14.04% 19.65% 15.99% 29.33% 33.20%
Total Equity and
Liabilities
100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Income Statement
VERTICAL ANALYSIS
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013
% % % % % % %
Fixed Assets
Tangible Assets 38.79% 41.28% 39.49% 40.77% 46.23% 48.82% 49.61%
Land & Buildings 34.35% 36.42% 34.01% 34.98% 40.41% 41.36% 41.60%
∟ Freehold Land 0.00% 0.00% 0.00% 29.62% 35.39% 36.74% 36.58%
∟ Leasehold Land 0.00% 0.00% 0.00% 5.36% 5.02% 4.62% 5.03%
Fixtures & Fittings 0.00% 3.91% 0.00% 4.89% 0.00% 0.00% 0.00%
Plant & Vehicles 0.00% 0.70% 0.00% 0.57% 0.00% 0.00% 0.00%
∟ Vehicles 0.00% 0.70% 0.00% 0.57% 0.00% 0.00% 0.00%
Other Fixed Assets 4.43% 0.26% 5.48% 0.33% 5.81% 7.46% 8.01%
Intangible Assets 12.77% 5.93% 5.93% 6.55% 8.53% 7.57% 8.70%
Investments 22.62% 22.19% 20.96% 18.91% 18.20% 17.53% 15.56%
Fixed Assets 74.17% 69.40% 66.38% 66.23% 72.95% 73.92% 73.88%
Current Assets
Stock & W.I.P. 5.34% 5.04% 5.02% 5.53% 6.69% 7.13% 7.47%
W.I.P. 0.01% 0.01% 0.05% 0.09% 0.30% 0.22% 0.20%
Finished Goods 5.32% 5.04% 4.96% 5.44% 6.39% 6.91% 7.27%
Trade Debtors 1.22% 1.04% 1.07% 1.13% 0.00% 0.00% 0.00%
24MANAGE FINANCIAL PERFORMANCE
Bank & Deposits 5.95% 9.05% 8.33% 7.02% 4.90% 5.00% 5.01%
Other Current Assets 12.09% 12.63% 11.26% 11.26% 13.46% 11.78% 11.23%
Group Loans (asset) 0.35% 0.37% 0.33% 0.41% 0.57% 0.55% 0.94%
Other Debtors 10.52% 10.94% 9.75% 9.82% 11.65% 10.43% 9.44%
Prepayments 1.21% 1.29% 1.15% 1.00% 1.21% 0.77% 0.83%
Deferred Taxation 0.01% 0.03% 0.03% 0.03% 0.04% 0.02% 0.02%
Investments 1.24% 2.84% 7.94% 8.83% 2.00% 2.18% 2.42%
Current Assets 25.83% 30.60% 33.62% 33.77% 27.05% 26.08% 26.12%
TOTAL ASSESTS 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Current Liabilities
Trade Creditors -11.72% -12.07% -10.72% -10.35% -11.48% -11.62% -12.04%
Short Term Loans &
Overdrafts
-21.31% -20.75% -20.20% -6.47% -4.59% -3.85% -1.59%
Bank Overdrafts -0.79% -0.78% -1.99% 0.00% -4.48% -1.65% -1.46%
Group Loans (short t.) -0.04% -0.06% -0.05% -0.05% -0.09% -0.04% -0.10%
Hire Purch. & Leas. (short
t.)
-0.07% -0.03% -0.02% -0.03% -0.02% -0.01% -0.01%
∟ Leasing (short t.) -0.07% -0.03% -0.02% -0.03% -0.02% -0.01% -0.01%
Other Short Term Loans -20.40% -19.89% -18.14% -6.40% 0.00% -2.14% -0.03%
Total Other Current
Liabilities
-9.13% -10.06% -11.40% -28.08% -28.73% -27.18% -24.24%
Corporation Tax -0.66% -0.75% -1.34% -0.95% -0.21% -0.98% -1.04%
Accruals & Def. Inc. (short
t.)
-2.51% -3.66% -3.35% -3.48% -3.98% -3.08% -3.66%
Social Securities & V.A.T. -1.06% -0.74% -0.68% -0.88% -0.83% -0.80% -0.88%
Other Current Liabilities -4.90% -4.90% -6.04% -22.76% -23.71% -22.33% -18.66%
Current Liabilities -42.16% -42.88% -42.32% -44.90% -44.80% -42.66% -37.87%
Net Current Assets
(Working Capital)
-16.34% -12.29% -8.70% -11.13% -17.76% -16.57% -11.75%
Net Tangible Assets
(Liab.)
45.06% 51.19% 51.75% 48.55% 46.67% 49.78% 53.43%
Working Capital needs -5.17% -5.99% -4.63% -3.69% -4.79% -4.50% -4.57%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Bank & Deposits 5.95% 9.05% 8.33% 7.02% 4.90% 5.00% 5.01%
Other Current Assets 12.09% 12.63% 11.26% 11.26% 13.46% 11.78% 11.23%
Group Loans (asset) 0.35% 0.37% 0.33% 0.41% 0.57% 0.55% 0.94%
Other Debtors 10.52% 10.94% 9.75% 9.82% 11.65% 10.43% 9.44%
Prepayments 1.21% 1.29% 1.15% 1.00% 1.21% 0.77% 0.83%
Deferred Taxation 0.01% 0.03% 0.03% 0.03% 0.04% 0.02% 0.02%
Investments 1.24% 2.84% 7.94% 8.83% 2.00% 2.18% 2.42%
Current Assets 25.83% 30.60% 33.62% 33.77% 27.05% 26.08% 26.12%
TOTAL ASSESTS 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Current Liabilities
Trade Creditors -11.72% -12.07% -10.72% -10.35% -11.48% -11.62% -12.04%
Short Term Loans &
Overdrafts
-21.31% -20.75% -20.20% -6.47% -4.59% -3.85% -1.59%
Bank Overdrafts -0.79% -0.78% -1.99% 0.00% -4.48% -1.65% -1.46%
Group Loans (short t.) -0.04% -0.06% -0.05% -0.05% -0.09% -0.04% -0.10%
Hire Purch. & Leas. (short
t.)
-0.07% -0.03% -0.02% -0.03% -0.02% -0.01% -0.01%
∟ Leasing (short t.) -0.07% -0.03% -0.02% -0.03% -0.02% -0.01% -0.01%
Other Short Term Loans -20.40% -19.89% -18.14% -6.40% 0.00% -2.14% -0.03%
Total Other Current
Liabilities
-9.13% -10.06% -11.40% -28.08% -28.73% -27.18% -24.24%
Corporation Tax -0.66% -0.75% -1.34% -0.95% -0.21% -0.98% -1.04%
Accruals & Def. Inc. (short
t.)
-2.51% -3.66% -3.35% -3.48% -3.98% -3.08% -3.66%
Social Securities & V.A.T. -1.06% -0.74% -0.68% -0.88% -0.83% -0.80% -0.88%
Other Current Liabilities -4.90% -4.90% -6.04% -22.76% -23.71% -22.33% -18.66%
Current Liabilities -42.16% -42.88% -42.32% -44.90% -44.80% -42.66% -37.87%
Net Current Assets
(Working Capital)
-16.34% -12.29% -8.70% -11.13% -17.76% -16.57% -11.75%
Net Tangible Assets
(Liab.)
45.06% 51.19% 51.75% 48.55% 46.67% 49.78% 53.43%
Working Capital needs -5.17% -5.99% -4.63% -3.69% -4.79% -4.50% -4.57%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
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25MANAGE FINANCIAL PERFORMANCE
Total Assets less Cur.
Liab.
57.84% 57.12% 57.68% 55.10% 55.20% 57.34% 62.13%
Long Term Liabilities
Long Term Debt -18.29% -22.54% -25.54% -24.40% -24.09% -18.55% -20.08%
Hire Purch. & Leas. (long
t.)
-0.19% -0.25% -0.22% -0.20% -0.30% -0.23% -0.24%
∟ Leasing (long t.) -0.19% -0.25% -0.22% -0.20% -0.30% -0.23% -0.24%
Other Long Term Loans -18.10% -22.30% -25.31% -24.20% -23.79% -18.32% -19.84%
Total Other Long Term
Liab.
-1.58% -2.14% -2.03% -2.02% -2.14% -1.53% -1.51%
Other Long Term Liab. -1.58% -2.14% -2.03% -2.02% -2.14% -1.53% -1.51%
Provisions for Other Liab. -2.00% -1.81% -1.69% -1.82% -2.02% -1.55% -2.55%
Deferred Tax -0.48% -0.20% -0.19% -0.31% -0.45% -1.18% -2.01%
Other Provisions -1.52% -1.61% -1.49% -1.51% -1.57% -0.36% -0.54%
Pension Liabilities -5.73% -7.32% -14.44% -7.23% -10.95% -6.37% -4.74%
Balance sheet Minorities 0.05% 0.05% 0.05% 0.02% 0.00% -0.01% -0.04%
Long Term Liabilities -27.54% -33.76% -43.64% -35.45% -39.20% -28.01% -28.93%
Net assets 30.29% 23.36% 14.04% 19.65% 15.99% 29.33% 33.20%
Shareholders Funds
Issued Capital 1.00% 0.91% 0.89% 0.93% 0.92% 0.81% 0.80%
Total Reserves 29.29% 22.45% 13.15% 18.72% 15.07% 28.53% 32.40%
Share Premium Account 10.53% 11.38% 11.11% 11.60% 11.52% 10.13% 10.01%
Profit (Loss) Account 11.02% 9.42% 0.72% 7.44% 4.49% 19.39% 21.02%
Other Reserves 7.74% 1.64% 1.31% -0.32% -0.94% -0.99% 1.37%
Shareholders Funds 30.29% 23.36% 14.04% 19.65% 15.99% 29.33% 33.20%
Total Equity and
Liabilities
100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Total Assets less Cur.
Liab.
57.84% 57.12% 57.68% 55.10% 55.20% 57.34% 62.13%
Long Term Liabilities
Long Term Debt -18.29% -22.54% -25.54% -24.40% -24.09% -18.55% -20.08%
Hire Purch. & Leas. (long
t.)
-0.19% -0.25% -0.22% -0.20% -0.30% -0.23% -0.24%
∟ Leasing (long t.) -0.19% -0.25% -0.22% -0.20% -0.30% -0.23% -0.24%
Other Long Term Loans -18.10% -22.30% -25.31% -24.20% -23.79% -18.32% -19.84%
Total Other Long Term
Liab.
-1.58% -2.14% -2.03% -2.02% -2.14% -1.53% -1.51%
Other Long Term Liab. -1.58% -2.14% -2.03% -2.02% -2.14% -1.53% -1.51%
Provisions for Other Liab. -2.00% -1.81% -1.69% -1.82% -2.02% -1.55% -2.55%
Deferred Tax -0.48% -0.20% -0.19% -0.31% -0.45% -1.18% -2.01%
Other Provisions -1.52% -1.61% -1.49% -1.51% -1.57% -0.36% -0.54%
Pension Liabilities -5.73% -7.32% -14.44% -7.23% -10.95% -6.37% -4.74%
Balance sheet Minorities 0.05% 0.05% 0.05% 0.02% 0.00% -0.01% -0.04%
Long Term Liabilities -27.54% -33.76% -43.64% -35.45% -39.20% -28.01% -28.93%
Net assets 30.29% 23.36% 14.04% 19.65% 15.99% 29.33% 33.20%
Shareholders Funds
Issued Capital 1.00% 0.91% 0.89% 0.93% 0.92% 0.81% 0.80%
Total Reserves 29.29% 22.45% 13.15% 18.72% 15.07% 28.53% 32.40%
Share Premium Account 10.53% 11.38% 11.11% 11.60% 11.52% 10.13% 10.01%
Profit (Loss) Account 11.02% 9.42% 0.72% 7.44% 4.49% 19.39% 21.02%
Other Reserves 7.74% 1.64% 1.31% -0.32% -0.94% -0.99% 1.37%
Shareholders Funds 30.29% 23.36% 14.04% 19.65% 15.99% 29.33% 33.20%
Total Equity and
Liabilities
100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
26MANAGE FINANCIAL PERFORMANCE
Appendix D: Horizontal Statement Analysis: Sainsbury Plc.
J SAINSBURY PLC
Balance sheet
HORIZONTAL
ANALYSIS
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013
% % % % % % %
Fixed Assets
Tangible Assets 99.02% 100.96% 102.06% 99.59% 98.41% 100.78% 100.00%
Land & Buildings 99.00% 101.14% 101.53% 96.31% 98.11% 100.60% 100.00%
Fixtures & Fittings #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Other Fixed Assets 99.09% 100.25% 104.16% 112.62% 99.59% 0.00% 100.00%
Intangible Assets 610.53% 626.90% 433.92% 192.40% 190.06% 167.25% 100.00%
Investments 526.18% 392.68% 330.89% 302.23% 255.46% 248.76% 100.00%
Fixed Assets 139.07% 131.11% 124.43% 116.21% 111.60% 112.89% 100.00%
Current Assets
Stock & W.I.P. 195.44% 183.38% 179.84% 98.07% 101.01% 101.82% 100.00%
Stock #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
W.I.P. 0.00% 0.00% 0.00% 7.14% 21.43% 28.57% 100.00%
Finished Goods 198.25% 186.02% 182.32% 99.38% 0.00% 0.00% 100.00%
Trade Debtors 2954.69% 2716.41% 2181.25% 1399.22% 1328.13% 1292.97% 100.00%
Bank & Deposits 216.83% 334.62% 209.48% 221.08% 248.55% 307.93% 100.00%
Other Current Assets 290.45% 352.25% 262.92% 231.46% 207.87% 34.27% 100.00%
Other Debtors 247.69% 361.54% 240.00% 234.62% 208.46% 0.00% 100.00%
Prepayments 406.25% 327.08% 325.00% 222.92% 206.25% 127.08% 100.00%
Investments 230.77% 213.46% 196.15% 125.00% 147.12% 53.85% 100.00%
Current Assets 396.50% 410.97% 330.30% 232.18% 235.37% 228.27% 100.00%
TOTAL ASSESTS 177.88% 173.30% 155.47% 133.70% 130.26% 130.29% 100.00%
Current Liabilities
Trade Creditors 448.53% 394.08% 344.34% 267.71% 287.42% 96.75% 100.00%
Short Term Loans &
Overdrafts
574.55% 462.42% 177.58% 206.67% 157.58% 323.64% 100.00%
Bank Overdrafts 139.86% 1.40% 4.20% 29.37% 66.43% 354.55% 100.00%
Hire Purch. & Leas. (short
t.)
76.19% 142.86% 109.52% 180.95% 142.86% 128.57% 100.00%
∟ Leasing (short t.) 76.19% 142.86% 109.52% 180.95% 142.86% 128.57% 100.00%
Appendix D: Horizontal Statement Analysis: Sainsbury Plc.
J SAINSBURY PLC
Balance sheet
HORIZONTAL
ANALYSIS
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013
% % % % % % %
Fixed Assets
Tangible Assets 99.02% 100.96% 102.06% 99.59% 98.41% 100.78% 100.00%
Land & Buildings 99.00% 101.14% 101.53% 96.31% 98.11% 100.60% 100.00%
Fixtures & Fittings #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Other Fixed Assets 99.09% 100.25% 104.16% 112.62% 99.59% 0.00% 100.00%
Intangible Assets 610.53% 626.90% 433.92% 192.40% 190.06% 167.25% 100.00%
Investments 526.18% 392.68% 330.89% 302.23% 255.46% 248.76% 100.00%
Fixed Assets 139.07% 131.11% 124.43% 116.21% 111.60% 112.89% 100.00%
Current Assets
Stock & W.I.P. 195.44% 183.38% 179.84% 98.07% 101.01% 101.82% 100.00%
Stock #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
W.I.P. 0.00% 0.00% 0.00% 7.14% 21.43% 28.57% 100.00%
Finished Goods 198.25% 186.02% 182.32% 99.38% 0.00% 0.00% 100.00%
Trade Debtors 2954.69% 2716.41% 2181.25% 1399.22% 1328.13% 1292.97% 100.00%
Bank & Deposits 216.83% 334.62% 209.48% 221.08% 248.55% 307.93% 100.00%
Other Current Assets 290.45% 352.25% 262.92% 231.46% 207.87% 34.27% 100.00%
Other Debtors 247.69% 361.54% 240.00% 234.62% 208.46% 0.00% 100.00%
Prepayments 406.25% 327.08% 325.00% 222.92% 206.25% 127.08% 100.00%
Investments 230.77% 213.46% 196.15% 125.00% 147.12% 53.85% 100.00%
Current Assets 396.50% 410.97% 330.30% 232.18% 235.37% 228.27% 100.00%
TOTAL ASSESTS 177.88% 173.30% 155.47% 133.70% 130.26% 130.29% 100.00%
Current Liabilities
Trade Creditors 448.53% 394.08% 344.34% 267.71% 287.42% 96.75% 100.00%
Short Term Loans &
Overdrafts
574.55% 462.42% 177.58% 206.67% 157.58% 323.64% 100.00%
Bank Overdrafts 139.86% 1.40% 4.20% 29.37% 66.43% 354.55% 100.00%
Hire Purch. & Leas. (short
t.)
76.19% 142.86% 109.52% 180.95% 142.86% 128.57% 100.00%
∟ Leasing (short t.) 76.19% 142.86% 109.52% 180.95% 142.86% 128.57% 100.00%
27MANAGE FINANCIAL PERFORMANCE
Other Short Term Loans 73200.00% 73100.00
%
26400.00% 26100.00% 13500.00% 0.00% 100.00%
Total Other Current
Liabilities
183.40% 193.86% 164.11% 122.36% 113.15% 420.83% 100.00%
Corporation Tax 137.84% 166.89% 147.97% 106.76% 127.03% 127.70% 100.00%
Accruals & Def. Inc. (short
t.)
295.42% 307.04% 170.77% 142.61% 102.82% 90.14% 100.00%
Other Current Liabilities 142.30% 147.70% 164.92% 116.72% 114.59% 645.90% 100.00%
Current Liabilities 366.52% 330.72% 275.22% 215.86% 222.25% 217.17% 100.00%
Net Current Assets
(Working Capital)
318.73% 202.83% 187.43% 189.84% 201.33% 199.50% 100.00%
Net Tangible Assets
(Liab.)
107.57% 112.95% 110.77% 105.43% 98.72% 100.85% 100.00%
Working Capital needs 359.02% 281.46% 252.59% 296.22% 351.45% -102.65% 100.00%
Total Assets 177.88% 173.30% 155.47% 133.70% 130.26% 130.29% 100.00%
Total Assets less Cur.
Liab.
116.54% 122.12% 116.53% 106.98% 100.35% 102.04% 100.00%
Long Term Liabilities
Long Term Debt 35.65% 68.36% 77.91% 83.68% 95.76% 85.98% 100.00%
Hire Purch. & Leas. (long t.) 76.26% 69.78% 82.73% 98.56% 121.58% 115.83% 100.00%
∟ Leasing (long t.) 76.26% 69.78% 82.73% 98.56% 121.58% 115.83% 100.00%
Other Long Term Loans 33.37% 68.28% 77.64% 82.85% 94.31% 84.30% 100.00%
Total Other Long Term
Liab.
1230.51% 1036.72% 553.11% 519.77% 321.47% 297.74% 100.00%
Accruals & Def. Inc. (long t.) 194.12% 177.06% 167.65% 0.00% 150.59% 114.12% 100.00%
Other Long Term Liab. 26400.00% 21914.29
%
9914.29% 13142.86% 4471.43% 4757.14% 100.00%
Provisions for Other Liab. 194.76% 142.31% 104.90% 127.97% 102.10% 89.51% 100.00%
Deferred Tax 160.73% 97.57% 69.64% 95.95% 87.04% 91.90% 100.00%
Other Provisions 410.26% 425.64% 328.21% 330.77% 197.44% 74.36% 100.00%
Pension Liabilities -125.20% 33.55% 127.15% 53.26% 92.43% 96.21% 100.00%
Balance sheet Minorities 0.00% 0.00% 0.00% 0.00% 0.00% 200.00% 100.00%
Long Term Liabilities 70.42% 111.46% 111.57% 100.96% 105.93% 98.05% 100.00%
Net assets 147.50% 129.27% 119.87% 111.02% 96.62% 104.71% 100.00%
Shareholders Funds
Issued Capital 116.45% 115.90% 115.53% 101.66% 101.29% 100.74% 100.00%
Total Reserves 150.73% 130.66% 120.32% 112.00% 96.13% 105.12% 100.00%
Share Premium Account 106.70% 105.12% 104.19% 103.63% 103.07% 101.49% 100.00%
Other Short Term Loans 73200.00% 73100.00
%
26400.00% 26100.00% 13500.00% 0.00% 100.00%
Total Other Current
Liabilities
183.40% 193.86% 164.11% 122.36% 113.15% 420.83% 100.00%
Corporation Tax 137.84% 166.89% 147.97% 106.76% 127.03% 127.70% 100.00%
Accruals & Def. Inc. (short
t.)
295.42% 307.04% 170.77% 142.61% 102.82% 90.14% 100.00%
Other Current Liabilities 142.30% 147.70% 164.92% 116.72% 114.59% 645.90% 100.00%
Current Liabilities 366.52% 330.72% 275.22% 215.86% 222.25% 217.17% 100.00%
Net Current Assets
(Working Capital)
318.73% 202.83% 187.43% 189.84% 201.33% 199.50% 100.00%
Net Tangible Assets
(Liab.)
107.57% 112.95% 110.77% 105.43% 98.72% 100.85% 100.00%
Working Capital needs 359.02% 281.46% 252.59% 296.22% 351.45% -102.65% 100.00%
Total Assets 177.88% 173.30% 155.47% 133.70% 130.26% 130.29% 100.00%
Total Assets less Cur.
Liab.
116.54% 122.12% 116.53% 106.98% 100.35% 102.04% 100.00%
Long Term Liabilities
Long Term Debt 35.65% 68.36% 77.91% 83.68% 95.76% 85.98% 100.00%
Hire Purch. & Leas. (long t.) 76.26% 69.78% 82.73% 98.56% 121.58% 115.83% 100.00%
∟ Leasing (long t.) 76.26% 69.78% 82.73% 98.56% 121.58% 115.83% 100.00%
Other Long Term Loans 33.37% 68.28% 77.64% 82.85% 94.31% 84.30% 100.00%
Total Other Long Term
Liab.
1230.51% 1036.72% 553.11% 519.77% 321.47% 297.74% 100.00%
Accruals & Def. Inc. (long t.) 194.12% 177.06% 167.65% 0.00% 150.59% 114.12% 100.00%
Other Long Term Liab. 26400.00% 21914.29
%
9914.29% 13142.86% 4471.43% 4757.14% 100.00%
Provisions for Other Liab. 194.76% 142.31% 104.90% 127.97% 102.10% 89.51% 100.00%
Deferred Tax 160.73% 97.57% 69.64% 95.95% 87.04% 91.90% 100.00%
Other Provisions 410.26% 425.64% 328.21% 330.77% 197.44% 74.36% 100.00%
Pension Liabilities -125.20% 33.55% 127.15% 53.26% 92.43% 96.21% 100.00%
Balance sheet Minorities 0.00% 0.00% 0.00% 0.00% 0.00% 200.00% 100.00%
Long Term Liabilities 70.42% 111.46% 111.57% 100.96% 105.93% 98.05% 100.00%
Net assets 147.50% 129.27% 119.87% 111.02% 96.62% 104.71% 100.00%
Shareholders Funds
Issued Capital 116.45% 115.90% 115.53% 101.66% 101.29% 100.74% 100.00%
Total Reserves 150.73% 130.66% 120.32% 112.00% 96.13% 105.12% 100.00%
Share Premium Account 106.70% 105.12% 104.19% 103.63% 103.07% 101.49% 100.00%
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28MANAGE FINANCIAL PERFORMANCE
Profit (Loss) Account 117.32% 93.33% 78.57% 83.00% 75.30% 87.68% 100.00%
Other Reserves 3361.40% 3271.93% 3398.25% 2335.09% 1449.12% 1415.79% 100.00%
Shareholders Funds 147.50% 129.27% 119.87% 111.02% 96.62% 104.71% 100.00%
Total Equity and
Liabilities
177.88% 173.30% 155.47% 133.70% 130.26% 130.29% 100.00%
Income Statement
J SAINSBURY PLC
Profit & Loss account
HORIZONTAL
ANALYSIS
3/9/2019 3/10/2018 3/11/2017 3/12/201
6
3/14/2015 3/15/2014 3/16/2013
% % % % % % %
Turnover 124.48% 122.11% 112.53% 100.87% 102.03% 102.77% 100.00%
∟ National Turnover 0.00% 0.00% 0.00% 0.00% 0.00% 102.77% 100.00%
Cost of Sales 122.58% 120.65% 111.64% 100.11% 102.46% 102.43% 100.00%
Gross Profit 157.17% 147.38% 127.96% 114.02% 94.60% 108.61% 100.00%
Administration
Expenses
379.21% 309.63% 264.11% 186.00% 247.70% 97.16% 100.00%
Other Operating
Income/Costs pre OP
56.72% 76.12% 320.90% 150.75% 7.46% 98.51% 100.00%
Operating Profit 35.17% 58.40% 72.38% 79.71% 9.13% 113.75% 100.00%
Other Income 16.67% 50.00% -154.17% -45.83% 33.33% 116.67% 100.00%
Total Other Income &
Int. Received
60.47% 72.09% -6.98% 18.60% 62.79% 111.63% 100.00%
Profit (Loss) before
Interest paid
36.34% 59.03% 68.71% 76.88% 11.61% 113.66% 100.00%
Interest Received 115.79% 100.00% 178.95% 100.00% 100.00% 105.26% 100.00%
Interest Paid 69.72% 98.59% 95.77% 117.61% 126.76% 111.97% 100.00%
∟ Paid to Bank #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
∟ Paid on Leasing 100.00% 100.00% 114.29% 128.57% 0.00% 114.29% 100.00%
∟ Other Interest
Paid
68.15% 98.52% 94.81% 117.04% 133.33% 0.00% 100.00%
Profit (Loss) Account 117.32% 93.33% 78.57% 83.00% 75.30% 87.68% 100.00%
Other Reserves 3361.40% 3271.93% 3398.25% 2335.09% 1449.12% 1415.79% 100.00%
Shareholders Funds 147.50% 129.27% 119.87% 111.02% 96.62% 104.71% 100.00%
Total Equity and
Liabilities
177.88% 173.30% 155.47% 133.70% 130.26% 130.29% 100.00%
Income Statement
J SAINSBURY PLC
Profit & Loss account
HORIZONTAL
ANALYSIS
3/9/2019 3/10/2018 3/11/2017 3/12/201
6
3/14/2015 3/15/2014 3/16/2013
% % % % % % %
Turnover 124.48% 122.11% 112.53% 100.87% 102.03% 102.77% 100.00%
∟ National Turnover 0.00% 0.00% 0.00% 0.00% 0.00% 102.77% 100.00%
Cost of Sales 122.58% 120.65% 111.64% 100.11% 102.46% 102.43% 100.00%
Gross Profit 157.17% 147.38% 127.96% 114.02% 94.60% 108.61% 100.00%
Administration
Expenses
379.21% 309.63% 264.11% 186.00% 247.70% 97.16% 100.00%
Other Operating
Income/Costs pre OP
56.72% 76.12% 320.90% 150.75% 7.46% 98.51% 100.00%
Operating Profit 35.17% 58.40% 72.38% 79.71% 9.13% 113.75% 100.00%
Other Income 16.67% 50.00% -154.17% -45.83% 33.33% 116.67% 100.00%
Total Other Income &
Int. Received
60.47% 72.09% -6.98% 18.60% 62.79% 111.63% 100.00%
Profit (Loss) before
Interest paid
36.34% 59.03% 68.71% 76.88% 11.61% 113.66% 100.00%
Interest Received 115.79% 100.00% 178.95% 100.00% 100.00% 105.26% 100.00%
Interest Paid 69.72% 98.59% 95.77% 117.61% 126.76% 111.97% 100.00%
∟ Paid to Bank #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
∟ Paid on Leasing 100.00% 100.00% 114.29% 128.57% 0.00% 114.29% 100.00%
∟ Other Interest
Paid
68.15% 98.52% 94.81% 117.04% 133.33% 0.00% 100.00%
29MANAGE FINANCIAL PERFORMANCE
Net Interest 62.60% 98.37% 82.93% 120.33% 130.89% 113.01% 100.00%
Profit (Loss) before
Tax
30.33% 51.90% 63.83% 69.54% -9.14% 113.96% 100.00%
Taxation 11.49% 57.47% 72.41% 44.25% 54.02% 104.60% 100.00%
Profit (Loss) after Tax 35.67% 50.33% 61.40% 76.71% -27.04% 116.61% 100.00%
Profit (Loss) for
period [=Net income]
35.67% 50.33% 61.40% 76.71% -27.04% 116.61% 100.00%
Dividends 72.73% 68.83% 75.32% 75.97% 107.14% 103.90% 100.00%
Retained Profit(Loss) -1.63% 31.70% 47.39% 77.45% -162.09% 129.41% 100.00%
Net Interest 62.60% 98.37% 82.93% 120.33% 130.89% 113.01% 100.00%
Profit (Loss) before
Tax
30.33% 51.90% 63.83% 69.54% -9.14% 113.96% 100.00%
Taxation 11.49% 57.47% 72.41% 44.25% 54.02% 104.60% 100.00%
Profit (Loss) after Tax 35.67% 50.33% 61.40% 76.71% -27.04% 116.61% 100.00%
Profit (Loss) for
period [=Net income]
35.67% 50.33% 61.40% 76.71% -27.04% 116.61% 100.00%
Dividends 72.73% 68.83% 75.32% 75.97% 107.14% 103.90% 100.00%
Retained Profit(Loss) -1.63% 31.70% 47.39% 77.45% -162.09% 129.41% 100.00%
30MANAGE FINANCIAL PERFORMANCE
Appendix E: Horizontal Statement Analysis: TESCO Company
VHORIZONTAL ANALYSIS
2/23/2019 2/24/2018 2/25/2017 2/27/2016 2/28/2015 2/22/2014 2/23/2013
% % % % % % %
Turnover 98.59% 88.69% 86.26% 83.97% 96.08% 98.04% 100.00%
∟ National Turnover 0.00% 0.00% 0.00% 0.00% 99.65% 99.93% 100.00%
∟ Overseas Turnover 0.00% 0.00% 0.00% 0.00% 88.99% 94.30% 100.00%
Cost of Sales 98.40% 89.14% 87.29% 84.92% 106.02% 98.04% 100.00%
Gross Profit 101.35% 81.93% 70.97% 69.80% -51.65% 98.07% 100.00%
Administration Expenses 105.73% 93.95% 104.94% 98.58% 193.58% 87.16% 100.00%
Other Operating Income/Costs pre OP #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Exceptional Items pre OP #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Operating Profit 98.40% 83.96% 46.48% 47.81% -264.72% 120.25% 100.00%
Other Income 64.81% -11.11% -198.15% -38.89% -24.07% 111.11% 100.00%
Total Other Income & Int. Received 16.10% 25.99% 0.56% 2.26% 21.75% 54.24% 100.00%
Profit (Loss) before Interest paid 86.94% 75.89% 40.09% 41.46% -224.82% 111.05% 100.00%
Interest Received 7.33% 32.67% 36.33% 9.67% 30.00% 44.00% 100.00%
Interest Paid 92.10% 108.42% 150.17% 153.26% 113.57% 96.91% 100.00%
∟ Paid to Bank 0.00% 0.00% 0.00% 0.00% 0.00% 77.27% 100.00%
∟ Paid on Hire Purchase 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 100.00%
∟ Other Interest Paid 110.74% 130.37% 180.58% 184.30% 136.57% 100.41% 100.00%
Net Interest 182.27% 189.01% 271.28% 306.03% 202.48% 153.19% 100.00%
Profit (Loss) before Tax 85.41% 66.22% 7.40% 8.27% -325.31% 115.26% 100.00%
Taxation 61.67% 53.31% 15.16% -9.41% -114.46% 60.45% 100.00%
Profit (Loss) after Tax 95.24% 71.57% 4.18% 15.58% -412.63% 137.95% 100.00%
Extraordinary Items 0.00% -17.06% 8.85% 6.87% 3.71% 74.41% 100.00%
Minority Interests 50.00% -50.00% 350.00% 225.00% 625.00% 100.00% 100.00%
Profit (Loss) for period [=Net income] 1066.13% 972.58% -32.26% 111.29% -4629.84% 785.48% 100.00%
Dividends 30.15% 6.76% 0.00% 0.00% 77.20% 100.42% 100.00%
Retained Profit(Loss) -91.04% -106.23% 3.77% -13.02% 627.83% 20.28% 100.00%
TESCO PLC
Profit & Loss account
Appendix E: Horizontal Statement Analysis: TESCO Company
VHORIZONTAL ANALYSIS
2/23/2019 2/24/2018 2/25/2017 2/27/2016 2/28/2015 2/22/2014 2/23/2013
% % % % % % %
Turnover 98.59% 88.69% 86.26% 83.97% 96.08% 98.04% 100.00%
∟ National Turnover 0.00% 0.00% 0.00% 0.00% 99.65% 99.93% 100.00%
∟ Overseas Turnover 0.00% 0.00% 0.00% 0.00% 88.99% 94.30% 100.00%
Cost of Sales 98.40% 89.14% 87.29% 84.92% 106.02% 98.04% 100.00%
Gross Profit 101.35% 81.93% 70.97% 69.80% -51.65% 98.07% 100.00%
Administration Expenses 105.73% 93.95% 104.94% 98.58% 193.58% 87.16% 100.00%
Other Operating Income/Costs pre OP #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Exceptional Items pre OP #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Operating Profit 98.40% 83.96% 46.48% 47.81% -264.72% 120.25% 100.00%
Other Income 64.81% -11.11% -198.15% -38.89% -24.07% 111.11% 100.00%
Total Other Income & Int. Received 16.10% 25.99% 0.56% 2.26% 21.75% 54.24% 100.00%
Profit (Loss) before Interest paid 86.94% 75.89% 40.09% 41.46% -224.82% 111.05% 100.00%
Interest Received 7.33% 32.67% 36.33% 9.67% 30.00% 44.00% 100.00%
Interest Paid 92.10% 108.42% 150.17% 153.26% 113.57% 96.91% 100.00%
∟ Paid to Bank 0.00% 0.00% 0.00% 0.00% 0.00% 77.27% 100.00%
∟ Paid on Hire Purchase 0.00% 0.00% 0.00% 0.00% 0.00% 100.00% 100.00%
∟ Other Interest Paid 110.74% 130.37% 180.58% 184.30% 136.57% 100.41% 100.00%
Net Interest 182.27% 189.01% 271.28% 306.03% 202.48% 153.19% 100.00%
Profit (Loss) before Tax 85.41% 66.22% 7.40% 8.27% -325.31% 115.26% 100.00%
Taxation 61.67% 53.31% 15.16% -9.41% -114.46% 60.45% 100.00%
Profit (Loss) after Tax 95.24% 71.57% 4.18% 15.58% -412.63% 137.95% 100.00%
Extraordinary Items 0.00% -17.06% 8.85% 6.87% 3.71% 74.41% 100.00%
Minority Interests 50.00% -50.00% 350.00% 225.00% 625.00% 100.00% 100.00%
Profit (Loss) for period [=Net income] 1066.13% 972.58% -32.26% 111.29% -4629.84% 785.48% 100.00%
Dividends 30.15% 6.76% 0.00% 0.00% 77.20% 100.42% 100.00%
Retained Profit(Loss) -91.04% -106.23% 3.77% -13.02% 627.83% 20.28% 100.00%
TESCO PLC
Profit & Loss account
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31MANAGE FINANCIAL PERFORMANCE
Balance Sheet
TESCO PLC
Balance sheet
HORIZONTAL
ANALYSIS
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/201
5
3/15/201
4
3/16/201
3
% % % % % % %
Fixed Assets
Tangible Assets 76.49% 74.47% 72.81% 71.97% 82.19% 98.47% 100.00%
Land & Buildings 80.79% 78.33% 74.77% 73.64% 85.68% 99.49% 100.00%
∟ Freehold Land 0.00% 0.00% 0.00% 70.93% 85.35% 100.52% 100.00%
∟ Leasehold Land 0.00% 0.00% 0.00% 93.38% 88.06% 91.99% 100.00%
Fixtures & Fittings #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Plant & Vehicles #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
∟ Vehicles #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Other Fixed Assets 54.14% 2.89% 62.61% 3.59% 64.05% 93.20% 100.00%
Intangible Assets 143.60% 61.00% 62.29% 65.89% 86.45% 87.00% 100.00%
Investments 142.19% 127.60% 123.20% 106.42% 103.13% 112.73% 100.00%
Fixed Assets 98.23% 84.08% 82.19% 78.51% 87.10% 100.12% 100.00%
Current Assets
Stock & W.I.P. 69.90% 60.44% 61.46% 64.90% 78.98% 95.51% 100.00%
W.I.P. 5.94% 3.96% 24.75% 39.60% 130.69% 107.92% 100.00%
Finished Goods 71.67% 62.01% 62.48% 65.61% 77.55% 95.17% 100.00%
Trade Debtors #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Bank & Deposits 116.08% 161.58% 152.11% 122.69% 86.19% 99.76% 100.00%
Other Current Assets 105.35% 100.64% 91.74% 87.85% 105.72% 104.94% 100.00%
Group Loans (asset) 36.02% 34.96% 32.42% 38.14% 52.97% 58.05% 100.00%
Other Debtors 109.09% 103.81% 94.48% 91.12% 108.88% 110.63% 100.00%
Prepayments 142.45% 138.61% 126.86% 105.52% 128.30% 93.05% 100.00%
Deferred Taxation 60.00% 120.00% 130.00% 150.00% 160.00% 120.00% 100.00%
Investments 50.12% 105.12% 300.66% 319.98% 73.08% 90.50% 100.00%
Current Assets 96.73% 104.81% 117.72% 113.23% 91.31% 99.92% 100.00%
TOTAL ASSESTS 97.84% 89.49% 91.47% 87.58% 88.20% 100.07% 100.00%
Current Liabilities
Balance Sheet
TESCO PLC
Balance sheet
HORIZONTAL
ANALYSIS
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/201
5
3/15/201
4
3/16/201
3
% % % % % % %
Fixed Assets
Tangible Assets 76.49% 74.47% 72.81% 71.97% 82.19% 98.47% 100.00%
Land & Buildings 80.79% 78.33% 74.77% 73.64% 85.68% 99.49% 100.00%
∟ Freehold Land 0.00% 0.00% 0.00% 70.93% 85.35% 100.52% 100.00%
∟ Leasehold Land 0.00% 0.00% 0.00% 93.38% 88.06% 91.99% 100.00%
Fixtures & Fittings #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Plant & Vehicles #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
∟ Vehicles #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Other Fixed Assets 54.14% 2.89% 62.61% 3.59% 64.05% 93.20% 100.00%
Intangible Assets 143.60% 61.00% 62.29% 65.89% 86.45% 87.00% 100.00%
Investments 142.19% 127.60% 123.20% 106.42% 103.13% 112.73% 100.00%
Fixed Assets 98.23% 84.08% 82.19% 78.51% 87.10% 100.12% 100.00%
Current Assets
Stock & W.I.P. 69.90% 60.44% 61.46% 64.90% 78.98% 95.51% 100.00%
W.I.P. 5.94% 3.96% 24.75% 39.60% 130.69% 107.92% 100.00%
Finished Goods 71.67% 62.01% 62.48% 65.61% 77.55% 95.17% 100.00%
Trade Debtors #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Bank & Deposits 116.08% 161.58% 152.11% 122.69% 86.19% 99.76% 100.00%
Other Current Assets 105.35% 100.64% 91.74% 87.85% 105.72% 104.94% 100.00%
Group Loans (asset) 36.02% 34.96% 32.42% 38.14% 52.97% 58.05% 100.00%
Other Debtors 109.09% 103.81% 94.48% 91.12% 108.88% 110.63% 100.00%
Prepayments 142.45% 138.61% 126.86% 105.52% 128.30% 93.05% 100.00%
Deferred Taxation 60.00% 120.00% 130.00% 150.00% 160.00% 120.00% 100.00%
Investments 50.12% 105.12% 300.66% 319.98% 73.08% 90.50% 100.00%
Current Assets 96.73% 104.81% 117.72% 113.23% 91.31% 99.92% 100.00%
TOTAL ASSESTS 97.84% 89.49% 91.47% 87.58% 88.20% 100.07% 100.00%
Current Liabilities
32MANAGE FINANCIAL PERFORMANCE
Trade Creditors 95.26% 89.73% 81.41% 75.30% 84.10% 96.60% 100.00%
Short Term Loans &
Overdrafts
1308.01% 1165.33% 1159.45% 355.44% 254.19% 241.80% 100.00%
Bank Overdrafts 53.01% 48.08% 124.93% 0.00% 271.51% 113.70% 100.00%
Group Loans (short t.) 40.82% 53.06% 46.94% 40.82% 79.59% 44.90% 100.00%
Hire Purch. & Leas. (short
t.)
600.00% 200.00% 183.33% 183.33% 166.67% 100.00% 100.00%
∟ Leasing (short t.) 600.00% 200.00% 183.33% 183.33% 166.67% 100.00% 100.00%
Other Short Term Loans 71485.71% 63728.57% 59414.29% 20064.29% 0.00% 7671.43
%
100.00%
Total Other Current
Liabilities
36.86% 37.13% 43.02% 101.47% 104.55% 112.23% 100.00%
Corporation Tax 62.62% 64.55% 118.11% 80.73% 18.30% 95.18% 100.00%
Accruals & Def. Inc. (short
t.)
67.03% 89.54% 83.71% 83.38% 95.86% 84.09% 100.00%
Social Securities & V.A.T. 118.41% 75.91% 70.45% 88.18% 83.18% 90.68% 100.00%
Other Current Liabilities 25.68% 23.50% 29.59% 106.80% 112.05% 119.71% 100.00%
Current Liabilities 108.93% 101.33% 102.21% 103.84% 104.35% 112.72% 100.00%
Net Current Assets
(Working Capital)
136.05% 93.60% 67.72% 82.97% 133.33% 141.18% 100.00%
Net Tangible Assets
(Liab.)
82.53% 85.74% 88.61% 79.59% 77.04% 93.23% 100.00%
Working Capital needs 110.60% 117.23% 92.63% 70.64% 92.45% 98.39% 100.00%
Total Assets 97.84% 89.49% 91.47% 87.58% 88.20% 100.07% 100.00%
Total Assets less Cur.
Liab.
91.08% 82.28% 84.92% 77.67% 78.36% 92.36% 100.00%
Long Term Liabilities
Long Term Debt 89.08% 100.46% 116.30% 106.39% 105.79% 92.40% 100.00%
Hire Purch. & Leas. (long
t.)
76.23% 90.16% 84.43% 72.13% 107.38% 94.26% 100.00%
∟ Leasing (long t.) 76.23% 90.16% 84.43% 72.13% 107.38% 94.26% 100.00%
Other Long Term Loans 89.24% 100.58% 116.69% 106.81% 105.77% 92.38% 100.00%
Total Other Long Term
Liab.
101.84% 126.22% 122.66% 117.13% 124.64% 101.45% 100.00%
Other Long Term Liab. 101.84% 126.22% 122.66% 117.13% 124.64% 101.45% 100.00%
Provisions for Other Liab. 76.92% 63.54% 60.49% 62.52% 69.95% 60.80% 100.00%
Deferred Tax 23.46% 9.05% 8.75% 13.42% 19.78% 59.05% 100.00%
Other Provisions 274.63% 265.07% 251.84% 244.12% 255.51% 67.28% 100.00%
Pension Liabilities 118.08% 138.02% 278.43% 133.52% 203.62% 134.27% 100.00%
Balance sheet Minorities -133.33% -122.22% -133.33% -55.56% 0.00% 38.89% 100.00%
Long Term Liabilities 93.16% 104.43% 137.99% 107.33% 119.53% 96.89% 100.00%
Net assets 89.27% 62.97% 38.68% 51.83% 42.49% 88.42% 100.00%
Trade Creditors 95.26% 89.73% 81.41% 75.30% 84.10% 96.60% 100.00%
Short Term Loans &
Overdrafts
1308.01% 1165.33% 1159.45% 355.44% 254.19% 241.80% 100.00%
Bank Overdrafts 53.01% 48.08% 124.93% 0.00% 271.51% 113.70% 100.00%
Group Loans (short t.) 40.82% 53.06% 46.94% 40.82% 79.59% 44.90% 100.00%
Hire Purch. & Leas. (short
t.)
600.00% 200.00% 183.33% 183.33% 166.67% 100.00% 100.00%
∟ Leasing (short t.) 600.00% 200.00% 183.33% 183.33% 166.67% 100.00% 100.00%
Other Short Term Loans 71485.71% 63728.57% 59414.29% 20064.29% 0.00% 7671.43
%
100.00%
Total Other Current
Liabilities
36.86% 37.13% 43.02% 101.47% 104.55% 112.23% 100.00%
Corporation Tax 62.62% 64.55% 118.11% 80.73% 18.30% 95.18% 100.00%
Accruals & Def. Inc. (short
t.)
67.03% 89.54% 83.71% 83.38% 95.86% 84.09% 100.00%
Social Securities & V.A.T. 118.41% 75.91% 70.45% 88.18% 83.18% 90.68% 100.00%
Other Current Liabilities 25.68% 23.50% 29.59% 106.80% 112.05% 119.71% 100.00%
Current Liabilities 108.93% 101.33% 102.21% 103.84% 104.35% 112.72% 100.00%
Net Current Assets
(Working Capital)
136.05% 93.60% 67.72% 82.97% 133.33% 141.18% 100.00%
Net Tangible Assets
(Liab.)
82.53% 85.74% 88.61% 79.59% 77.04% 93.23% 100.00%
Working Capital needs 110.60% 117.23% 92.63% 70.64% 92.45% 98.39% 100.00%
Total Assets 97.84% 89.49% 91.47% 87.58% 88.20% 100.07% 100.00%
Total Assets less Cur.
Liab.
91.08% 82.28% 84.92% 77.67% 78.36% 92.36% 100.00%
Long Term Liabilities
Long Term Debt 89.08% 100.46% 116.30% 106.39% 105.79% 92.40% 100.00%
Hire Purch. & Leas. (long
t.)
76.23% 90.16% 84.43% 72.13% 107.38% 94.26% 100.00%
∟ Leasing (long t.) 76.23% 90.16% 84.43% 72.13% 107.38% 94.26% 100.00%
Other Long Term Loans 89.24% 100.58% 116.69% 106.81% 105.77% 92.38% 100.00%
Total Other Long Term
Liab.
101.84% 126.22% 122.66% 117.13% 124.64% 101.45% 100.00%
Other Long Term Liab. 101.84% 126.22% 122.66% 117.13% 124.64% 101.45% 100.00%
Provisions for Other Liab. 76.92% 63.54% 60.49% 62.52% 69.95% 60.80% 100.00%
Deferred Tax 23.46% 9.05% 8.75% 13.42% 19.78% 59.05% 100.00%
Other Provisions 274.63% 265.07% 251.84% 244.12% 255.51% 67.28% 100.00%
Pension Liabilities 118.08% 138.02% 278.43% 133.52% 203.62% 134.27% 100.00%
Balance sheet Minorities -133.33% -122.22% -133.33% -55.56% 0.00% 38.89% 100.00%
Long Term Liabilities 93.16% 104.43% 137.99% 107.33% 119.53% 96.89% 100.00%
Net assets 89.27% 62.97% 38.68% 51.83% 42.49% 88.42% 100.00%
33MANAGE FINANCIAL PERFORMANCE
Shareholders Funds
Issued Capital 121.59% 101.74% 101.49% 100.99% 100.74% 100.50% 100.00%
Total Reserves 88.47% 62.01% 37.12% 50.61% 41.04% 88.12% 100.00%
Share Premium Account 102.89% 101.73% 101.51% 101.49% 101.47% 101.20% 100.00%
Profit (Loss) Account 51.31% 40.13% 3.15% 30.99% 18.84% 92.34% 100.00%
Other Reserves 554.45% 107.30% 87.74% -20.58% -60.44% -72.70% 100.00%
Shareholders Funds 89.27% 62.97% 38.68% 51.83% 42.49% 88.42% 100.00%
Total Equity and
Liabilities
97.84% 89.49% 91.47% 87.58% 88.20% 100.07% 100.00%
Shareholders Funds
Issued Capital 121.59% 101.74% 101.49% 100.99% 100.74% 100.50% 100.00%
Total Reserves 88.47% 62.01% 37.12% 50.61% 41.04% 88.12% 100.00%
Share Premium Account 102.89% 101.73% 101.51% 101.49% 101.47% 101.20% 100.00%
Profit (Loss) Account 51.31% 40.13% 3.15% 30.99% 18.84% 92.34% 100.00%
Other Reserves 554.45% 107.30% 87.74% -20.58% -60.44% -72.70% 100.00%
Shareholders Funds 89.27% 62.97% 38.68% 51.83% 42.49% 88.42% 100.00%
Total Equity and
Liabilities
97.84% 89.49% 91.47% 87.58% 88.20% 100.07% 100.00%
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34MANAGE FINANCIAL PERFORMANCE
Appendix F: Sainsbury Key Ratio
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013
GBP GBP GBP GBP GBP GBP GBP
Profitability Ratios
Return on Shareholders Funds
(%)
3.08 5.52 7.32 8.61 -1.30 14.96 13.74
Return on Capital Employed (%) 2.34 3.50 4.51 5.35 -0.75 9.19 8.23
Return on Total Assets (%) 1.15 1.86 2.55 3.23 -0.44 5.43 6.21
Profit margin (%) 0.82 1.44 1.92 2.33 -0.30 3.75 3.38
Gross margin (%) 6.92 6.61 6.23 6.19 5.08 5.79 5.48
Berry ratio (x) 1.18 1.37 1.53 1.83 1.07 3.27 2.94
EBIT margin (%) 1.08 1.82 2.45 3.01 0.34 4.21 3.81
EBITDA margin (%) 3.82 4.39 5.05 5.45 5.08 6.90 6.02
Efficiency Ratios
Net Assets Turnover (x) 2.83 2.43 2.35 2.29 2.47 2.45 2.43
Fixed Assets Turnover (x) 2.11 2.01 1.95 1.88 1.98 1.97 2.16
Interest Cover (x) 3.41 3.92 4.70 4.28 0.60 6.65 6.55
Stock Turnover (x) 16.40 15.72 14.77 24.28 23.85 23.83 23.61
Debtors Turnover (x) 8.37 8.18 9.39 13.12 13.99 14.47 182.05
Debtor Collection (days) 43.62 44.60 38.86 27.81 26.10 25.22 2.00
Creditors Payment (days) 98.71 96.44 91.44 79.32 84.19 28.13 29.89
Stock & WIP 1,929,000 1,810,000 1,775,000 968,000 997,000 1,005,000 987,000
Cost of sales -
27,000,00
0
-
26,574,00
0
-
24,590,00
0
-
22,050,00
0
-
22,567,00
0
-
22,562,00
0
-
22,026,00
0
Stock holding period (days) 26.08 24.86 26.35 16.02 16.13 16.26 16.36
Cash operating cycle 29.01 26.99 26.24 35.48 41.97 -13.35 11.52
Liquidity Ratios
Current ratio (x) 0.66 0.76 0.74 0.66 0.65 0.65 0.61
Liquidity ratio (x) 0.50 0.59 0.53 0.52 0.51 0.50 0.30
Shareholders liquidity ratio (x) 3.12 1.73 1.60 1.64 1.36 1.59 1.49
Solvency ratio (Asset based) (%) 37.45 33.68 34.82 37.50 33.49 36.29 45.16
Solvency ratio (Liability based)
(%)
59.86 50.80 53.42 60.00 50.36 56.97 82.35
Asset Cover (x) 24.20 12.30 9.68 7.75 6.60 7.35 4.85
Gearing Ratios
Appendix F: Sainsbury Key Ratio
3/9/2019 3/10/2018 3/11/2017 3/12/2016 3/14/2015 3/15/2014 3/16/2013
GBP GBP GBP GBP GBP GBP GBP
Profitability Ratios
Return on Shareholders Funds
(%)
3.08 5.52 7.32 8.61 -1.30 14.96 13.74
Return on Capital Employed (%) 2.34 3.50 4.51 5.35 -0.75 9.19 8.23
Return on Total Assets (%) 1.15 1.86 2.55 3.23 -0.44 5.43 6.21
Profit margin (%) 0.82 1.44 1.92 2.33 -0.30 3.75 3.38
Gross margin (%) 6.92 6.61 6.23 6.19 5.08 5.79 5.48
Berry ratio (x) 1.18 1.37 1.53 1.83 1.07 3.27 2.94
EBIT margin (%) 1.08 1.82 2.45 3.01 0.34 4.21 3.81
EBITDA margin (%) 3.82 4.39 5.05 5.45 5.08 6.90 6.02
Efficiency Ratios
Net Assets Turnover (x) 2.83 2.43 2.35 2.29 2.47 2.45 2.43
Fixed Assets Turnover (x) 2.11 2.01 1.95 1.88 1.98 1.97 2.16
Interest Cover (x) 3.41 3.92 4.70 4.28 0.60 6.65 6.55
Stock Turnover (x) 16.40 15.72 14.77 24.28 23.85 23.83 23.61
Debtors Turnover (x) 8.37 8.18 9.39 13.12 13.99 14.47 182.05
Debtor Collection (days) 43.62 44.60 38.86 27.81 26.10 25.22 2.00
Creditors Payment (days) 98.71 96.44 91.44 79.32 84.19 28.13 29.89
Stock & WIP 1,929,000 1,810,000 1,775,000 968,000 997,000 1,005,000 987,000
Cost of sales -
27,000,00
0
-
26,574,00
0
-
24,590,00
0
-
22,050,00
0
-
22,567,00
0
-
22,562,00
0
-
22,026,00
0
Stock holding period (days) 26.08 24.86 26.35 16.02 16.13 16.26 16.36
Cash operating cycle 29.01 26.99 26.24 35.48 41.97 -13.35 11.52
Liquidity Ratios
Current ratio (x) 0.66 0.76 0.74 0.66 0.65 0.65 0.61
Liquidity ratio (x) 0.50 0.59 0.53 0.52 0.51 0.50 0.30
Shareholders liquidity ratio (x) 3.12 1.73 1.60 1.64 1.36 1.59 1.49
Solvency ratio (Asset based) (%) 37.45 33.68 34.82 37.50 33.49 36.29 45.16
Solvency ratio (Liability based)
(%)
59.86 50.80 53.42 60.00 50.36 56.97 82.35
Asset Cover (x) 24.20 12.30 9.68 7.75 6.60 7.35 4.85
Gearing Ratios
35MANAGE FINANCIAL PERFORMANCE
Gearing (%) 43.25 68.16 66.72 66.38 78.26 71.73 69.98
Short Term Loans & Overdrafts -948,000 -763,000 -293,000 -341,000 -260,000 -534,000 -165,000
Long Term Debt -933,000 -1,789,000 -2,039,000 -2,190,000 -2,506,000 -2,250,000 -2,617,000
Total Debt 1,881,000 2,552,000 2,332,000 2,531,000 2,766,000 2,784,000 2,782,000
Shareholders Funds per
employee (unit)
8,456,000 7,411,000 6,872,000 6,365,000 5,539,000 6,003,000 5,733,000
Total Debt & Equity 10,337,000 9,963,000 9,204,000 8,896,000 8,305,000 8,787,000 8,515,000
Gearing (debt/debt+equity) 18.20% 25.61% 25.34% 28.45% 33.31% 31.68% 32.67%
Per employee ratios
Profit per employee (unit) 2,240 3,375 4,238 5,060 -673 8,393 7,505
Turnover per employee (unit) 271,856 234,785 220,927 217,045 222,196 223,822 221,933
Salaries/Turnover 10.93 11.01 10.97 10.81 10.28 10.17 9.96
Average Remuneration per
employee (unit)
29,709 25,858 24,246 23,463 22,850 22,757 22,114
Shareholders Funds per
employee (unit)
72,646 61,147 57,894 58,772 51,766 56,103 54,600
Working Capital per employee
(unit)
-24,459 -18,416 -16,874 -21,690 -26,047 7,607 -7,552
Total Assets per employee (unit) 194,003 181,526 166,276 156,722 154,551 154,579 120,905
Gearing (%) 43.25 68.16 66.72 66.38 78.26 71.73 69.98
Short Term Loans & Overdrafts -948,000 -763,000 -293,000 -341,000 -260,000 -534,000 -165,000
Long Term Debt -933,000 -1,789,000 -2,039,000 -2,190,000 -2,506,000 -2,250,000 -2,617,000
Total Debt 1,881,000 2,552,000 2,332,000 2,531,000 2,766,000 2,784,000 2,782,000
Shareholders Funds per
employee (unit)
8,456,000 7,411,000 6,872,000 6,365,000 5,539,000 6,003,000 5,733,000
Total Debt & Equity 10,337,000 9,963,000 9,204,000 8,896,000 8,305,000 8,787,000 8,515,000
Gearing (debt/debt+equity) 18.20% 25.61% 25.34% 28.45% 33.31% 31.68% 32.67%
Per employee ratios
Profit per employee (unit) 2,240 3,375 4,238 5,060 -673 8,393 7,505
Turnover per employee (unit) 271,856 234,785 220,927 217,045 222,196 223,822 221,933
Salaries/Turnover 10.93 11.01 10.97 10.81 10.28 10.17 9.96
Average Remuneration per
employee (unit)
29,709 25,858 24,246 23,463 22,850 22,757 22,114
Shareholders Funds per
employee (unit)
72,646 61,147 57,894 58,772 51,766 56,103 54,600
Working Capital per employee
(unit)
-24,459 -18,416 -16,874 -21,690 -26,047 7,607 -7,552
Total Assets per employee (unit) 194,003 181,526 166,276 156,722 154,551 154,579 120,905
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