Tesco Plc Financial Analysis Report: Performance and Strategy

This report presents a financial analysis of Tesco Plc, a leading UK retail company, evaluating its performance over a five-year period. The analysis includes a review of the income statement and balance sheet, highlighting trends in sales, net income, and asset/liability management. Common-size statements and ratio analysis are utilized to assess liquidity, profitability, efficiency, and solvency, comparing Tesco's performance to industry averages and competitors like Sainsbury and Morrison's. The report examines the impact of earnings on share price, identifies key business units contributing to revenue growth, and discusses corporate strategic moves. Strengths and weaknesses are identified based on the analysis, emphasizing the company's inventory turnover and debt levels. The report concludes with a discussion of the company's financial health and areas for improvement.

Individual Financial Analysis
Report

TABLE OF CONTENTS
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Discussing the income statement and balance sheet of Tesco...............................................3
Discussing the common sized income statement...................................................................3
Ratio analysis.........................................................................................................................4
Evaluating the earnings of the company and its impact over share price..............................6
Business units and product categories contributed to revenues and growth of the company 6
Corporate strategic moves of the company............................................................................6
Identifying the strengths and weakness based on the analysis...............................................6
REFERENCES...........................................................................................................................7
EXHIBIT....................................................................................................................................8

INTRODUCTION
Financial analysis basically refers to the process of evaluating the performance of
the business and the other financial transactions which results into determining the key
strength and weaknesses of the company. In this report, Tesco Plc is taken as an organization,
which is a top retail company headquartered in UK. This report presents about the financial
health of the company by making comparison to the industry average and the its key
competitors. It will help in determining the flexibility of the company to invest in itself.
MAIN BODY
Discussing the income statement and balance sheet of Tesco
On looking at the income statement of Tesco for the past 5 years, it can be clearly
seen that the sales of the company are increasing but at a slow pace in comparison to its
competitors Sainsbury. On analysing the net income of the company, it can be seen that the in
case of Tesco, the net income has increased from 265mn in 2016 to 933 mn in 2020 in
contrast to its competitor Sainsbury whose net income has shown a huge decline (Karmańska
and Wiśniewska, 2020). In respect to the balance sheet, the current assets of the Tesco have
shows a drop taking 2016 as the base year while its current labilities has also reduced which
just change of 0.34% on its base year. in contrast to its rival, there is an increase in the current
assets by 70.28% which is huge and in case of current liabilities, it increased more by 79.16%
taking 2016 as the base.
Therefore, on the basis of trend analysis, it can be stated that the Tesco is performing
well in contrast to its competitor which is good sign which is very sound in nature. The only
point of concern is that the company requires to have sufficient current assets for effectively
meting the short-term requirements.
Discussing the common sized income statement
Based on the common size statement of the company it can be stated that the COGS
constitutes 92.57% of the sales which has remained consistent over the 5 years. The result of
this, is that the gross profit is 4.34% of sales which has shown a change from 8.92% in 016 to
4.34% in 2020 (Annual Report and Financial Statements 2020. 2020). It is important to note
that interest expense is 1.43% of sales which has increased in contrast to -0.10% in 2016. On
the other hand, in case of Sainsbury, the COGS is 92.57% which is similar to Tesco but its
GP is more as it is 7.46% which has been increasing y-o-y basis. The interest expense is also
less which is 135% which has increased from 0.51%. the net income of Tesco has been
changing from 049% in the year 2016 to 1.44% in 2020 while in Sainsbury, the percentage

has shown a fall which is 0.44% in 2020. Thus, on an overall basis, there is not such point of
concern and the only thing is that Tesco requires to work on reducing its COGS amount for
increasing its profitability.
Ratio analysis
Financial ratios
Liquidity ratio
Current ratio
2018 2019 2020
Sainsbury 0.76 0.66 0.63
Tesco 0.71 0.60 0.72
Morrison’s 0.42 0.41 0.39
Industry average 1.67 1.63 1.78
Quick ratio
2018 2019 2020
Sainsbury 0.59 0.50 0.49
Tesco 0.59 0.47 0.58
Morrison’s 0.19 0.20 0.19
Industry average 0.81 0.72 0.77
Profitability ratio
Net profit margin
2018 2019 2020
Sainsbury 1.02% 0.69% 0.44%
Tesco 1.73% 1.99% 1.44%
Morrison’s 2.65% 2.22% 3.00%
Industry average 2.20% 2.70% 3.00%
Gross profit margin
2018 2019 2020
Sainsbury 6.56% 6.62% 7.46%
Tesco 5.92% 4.76% 4.34%
Morrison’s 3.67% 3.42% 3.59%
Industry average 5.38% 4.93% 5.13%
Efficiency ratio
Asset turnover ratio
2018 2019 2020
Sainsbury 1.29 1.23 1.04
Tesco 1.28 1.12 1.24
Morrison’s 4.06 4.10 3.86
Industry average 2.21 2.15 2.05
Inventory turnover ratio

2018 2019 2020
Sainsbury 14.69 14.04 15.49
Tesco 23.89 22.70 24.64
Morrison’s 24.24 24.02 26.57
Industry average 20.94 20.25 22.23
Solvency ratio
Gearing ratio
2018 2019 2020
Sainsbury 2.19 1.97 2.84
Tesco 3.28 3.23 2.94
Morrison’s 1.21 1.22 1.40
Industry average 0.69 0.73 0.67
Liquidity ratio
In comparison to the industry average the current ratio of the Tesco is less which
means that the company is finding it difficult to meet with its short-term obligation. If the
things go on like this, then it might get into the situation of cash crunch (Nugraha, Puspitasari
and Amalia, 2020). The quick ratio is very low which indicates that the company has invested
huge amount in its inventory which might not be helpful during the time of crisis.
Profitability ratio
The net profit margin is also not sufficient as it is 1.44% in 2020 while the industry
average is 3% in that year. Therefore, the company is required to implement the strategies for
reducing its expenses along with increasing its sales. Apart from this, the GP margin of the
company is 4.34% on an overall basis is moderate but not meeting with the industrial average
which is 5.13% in 2020.
Efficiency ratio
The asset turnover ratio is very low which indicates that the company is not making
use of its assets to its full capacity in generating higher sales. The ratio is 1.24 in 2020 while
that of industry average is 2.05% (Palepu and et.al., 2020). In addition, the inventory turnover
ratio is high and over its industry average which conveys that the company is effective in
selling out its stock quickly.
Solvency ratio
The solvency ratio of the Tesco is very high which means that the 2.94 in the year 2020
while the industry average is 0.67. the Tesco’s ability in terms of repaying its debt is decent.
This indicates that the business is mostly funded through long term debt.

Thus, the bets performing firm based on the current data is Morrison’s as it is
performing well in all the key ratios determined in contrast to the other firms. While the
worst is Sainsbury as in every aspect the firm is not performing good which is also a key
competitor of Tesco.
Evaluating the earnings of the company and its impact over share price
The share price of the Tesco has remained fluctuation which is not because of its
change in profit but also because of its key business decisions. Over the 5 years, the net profit
of the company has increased but it 2020, it declined (Annual Report and Financial
Statements 2017. 2017). But, the share price of the company increased as the performance of
the company improved in terms of profitability. This has resulted into creation of trust of the
investors towards the company.
Business units and product categories contributed to revenues and growth of the company
The key product categories that contributed to the significant growth of the company
is its food segment involving bananas, Corned and Fresh beef, berries coffee, milk etc. In
addition, cotton of it is also very profitable along with the wood and paper along with other
timber products which is used by it in its furniture and household segment. Thus, these
segments contributed in its growth.
Corporate strategic moves of the company
The company acquired the Best Food Logistics in March 2020 and it is expected that
it will gran large group of customers along with benefits of the sourcing capabilities to the
whole business. This is the latest strategic move taken by Tesco and this might impact the
liquidity position f the along with its changes in its capital structure pertaining to the dbe t
element leading to increasing the long-term obligation of the company.
Identifying the strengths and weakness based on the analysis
Based on the above analysis, it can be said that the financial position of the company
is in danger due to its insufficient maintenance of the liquid funds in order to meet with the
sudden requirements. In addition, the profits of the company are not so good thus, effective
measures are needed to be taken in order to over the same. These are the key weaknesses of
the company. While on the other side, the quick sale of its inventory is its strength along with
the declining debt ratio.

REFERENCES
Books and Journals
Karmańska, A. and Wiśniewska, D., 2020. The concept of a ratio analysis of consolidated
financial statements applied to listed capital groups on the example of the Deutsche
Börse Group. Zeszyty Teoretyczne Rachunkowości, (110 (166)), pp.155-180.
Nugraha, N. M., Puspitasari, D. M. and Amalia, S., 2020. The Effect of Financial Ratio
Factors on the Percentage of Income Increasing of Automotive Companies in
Indonesia. International Journal of Psychosocial Rehabilitation, 24(2), pp.2539-
2545.
Palepu, K. G., and et.al., 2020. Business analysis and valuation: Using financial statements.
Cengage AU.
Online
Annual Report and Financial Statements 2020. 2020. [Online]. Available Through:<
https://www.tescoplc.com/media/755761/tes006_ar2020_web_updated_200505.pdf
>.
J Sainsbury PLC. 2020. [Online]. Available Through:<
https://www.wsj.com/market-data/quotes/UK/XLON/SBRY/financials/annual/
balance-sheet>.
Wm. Morrison Supermarkets PLC. 2020. [Online]. Available Through:<
https://www.wsj.com/market-data/quotes/UK/XLON/MRW?
mod=searchresults_companyquotes>.
Annual Report and Financial Statements 2017. 2017. [Online]. Available Through:<
https://www.tescoplc.com/media/476554/68336_tesco_ar_digital_interactive_25041
7.pdf>.

EXHIBIT
Financial reports of Tesco
Income statement of Tesco
Fiscal year is March-February. All values GBP
Millions. 2016 2017 2018 2019 2020
Sales/Revenue 53,933 55,917 57,493 63,911 64,760
Cost of Goods Sold (COGS) incl. D&A 51,124 52,874 54,092 59,403 59,950
COGS excluding D&A 49,895 51,577 52,798 57,354 57,794
Depreciation & Amortization Expense 1,229 1,297 1,294 2,049 2,156
Gross Income 4,810 4,508 3,401 3,043 2,809
SG&A Expense 1,836 1,588 1,765 1,979 1,906
Other Operating Expense - - 105 - -
EBIT 973 1,455 1,531 2,529 2,904
Unusual Expense 308 507 -59 137 725
Non Operating Income/Expense 13 -227 72 15 24
Non-Operating Interest Income 29 48 44 25 23
Interest Expense 484 517 400 847 929
Pretax Income 223 252 1,306 1,585 1,297
Income Tax -54 87 306 347 380
Equity in Affiliates -21 -107 -6 32 18
Consolidated Net Income 256 58 994 1,270 935
Minority Interest Expense -9 -14 2 -2 2
Net Income 265 72 992 1,272 933
Balance sheet of Tesco
Assets
Fiscal year is March-February. All values GBP
Millions. 2016 2017 2018 2019 2020
Cash & Short Term Investments 6,835 7,118 5,156 3,373 4,686
Cash Only 3,082 6,225 5,088 3,306 4,484
Short-Term Investments 3,753 893 68 67 202
Total Accounts Receivable 5,039 5,654 6,153 6,438 5,697
Accounts Receivables, Net 1,406 1,475 1,504 1,550 1,396
Inventories 2,430 2,301 2,264 2,617 2,433
Finished Goods 2,390 2,276 2,260 2,611 2,429
Work in Progress 40 25 4 6 4
Other Current Assets 236 - 27 52 63
Total Current Assets 14,540 15,073 13,600 12,480 12,879
Net Property, Plant & Equipment 17,900 18,108 18,521 26,899 26,108
Property, Plant & Equipment - Gross 33,025 33,371 34,362 39,190 38,667
Buildings 22,436 22,633 23,385 24,447 24,780
Construction in Progress 184 123 125 146 202

Other Property, Plant & Equipment 10,405 10,615 10,852 6,884 6,811
Accumulated Depreciation 15,125 15,263 15,841 12,291 12,559
Buildings 7,198 7,095 7,116 7,523 7,841
Other Property, Plant & Equipment 7,927 8,168 8,725 4,768 4,718
Total Investments and Advances 3,416 2,929 2,766 2,795 2,282
Long-Term Note Receivable 5,125 5,975 7,071 8,111 4,337
Intangible Assets 2,874 2,717 2,661 6,264 6,119
Other Assets - 344 149 98 285
Total Assets 43,904 45,853 44,884 56,898 52,302
Liabilities & Shareholders' Equity
ST Debt & Current Portion LT Debt 2,826 2,560 1,479 2,209 2,088
Short Term Debt 851 918 357 387 413
Current Portion of Long Term Debt 1,975 1,642 1,122 1,822 1,675
Accounts Payable 8,293 8,875 8,994 9,131 8,922
Income Tax Payable 419 613 335 325 324
Other Current Liabilities 6,328 7,186 8,425 9,308 6,593
Total Current Liabilities 17,866 19,234 19,233 20,973 17,927
Long-Term Debt 10,711 9,433 7,142 15,439 14,973
Provision for Risks & Charges 7,014 7,306 4,003 2,955 3,222
Deferred Taxes 86 -619 -20 -202 -252
Other Liabilities -438 3,378 3,930 4,050 2,887
Total Liabilities 35,288 39,439 34,404 43,466 39,049
Common Equity (Total) 8,626 6,438 10,502 13,456 13,275
Total Shareholders' Equity 8,626 6,438 10,502 13,456 13,275
Accumulated Minority Interest -10 -24 -22 -24 -22
Total Equity 8,616 6,414 10,480 13,432 13,253
Liabilities & Shareholders' Equity 43,904 45,853 44,884 56,898 52,302
Income statement of Tesco (Vertical analysis)
Fiscal year is March-February. All values GBP Millions. 2016 2017 2018 2019 2020
Sales/Revenue 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of Goods Sold (COGS) incl. D&A 94.79% 94.56% 94.08% 92.95% 92.57%
COGS excluding D&A 92.51% 92.24% 91.83% 89.74% 89.24%
Depreciation & Amortization Expense 2.28% 2.32% 2.25% 3.21% 3.33%
Gross Income 8.92% 8.06% 5.92% 4.76% 4.34%
SG&A Expense 3.40% 2.84% 3.07% 3.10% 2.94%
Other Operating Expense - - - - -
EBIT 1.80% 2.60% 2.66% 3.96% 4.48%
Unusual Expense 0.57% 0.91% -0.10% 0.21% 1.12%
Non Operating Income/Expense 0.02% -0.41% 0.13% 0.02% 0.04%

Non-Operating Interest Income 0.05% 0.09% 0.08% 0.04% 0.04%
Interest Expense 0.90% 0.92% 0.70% 1.33% 1.43%
Pretax Income 0.41% 0.45% 2.27% 2.48% 2.00%
Income Tax -0.10% 0.16% 0.53% 0.54% 0.59%
Equity in Affiliates -0.04% -0.19% -0.01% 0.05% 0.03%
Consolidated Net Income 0.47% 0.10% 1.73% 1.99% 1.44%
Minority Interest Expense -0.02% -0.03% 0.00% 0.00% 0.00%
Net Income 0.49% 0.13% 1.73% 1.99% 1.44%
Balance sheet of Tesco (Vertical analysis)
Assets
Fiscal year is March-February. All values GBP Millions. 2016 2017 2018 2019 2020
Cash & Short Term Investments 15.57% 15.52% 11.49% 5.93% 8.96%
Cash Only 7.02% 13.58% 11.34% 5.81% 8.57%
Short-Term Investments 8.55% 1.95% 0.15% 0.12% 0.39%
Total Accounts Receivable 11.48% 12.33% 13.71% 11.31% 10.89%
Accounts Receivables, Net 3.20% 3.22% 3.35% 2.72% 2.67%
Inventories 5.53% 5.02% 5.04% 4.60% 4.65%
Finished Goods 5.44% 4.96% 5.04% 4.59% 4.64%
Work in Progress 0.09% 0.05% 0.01% 0.01% 0.01%
Other Current Assets 0.54% - 0.06% 0.09% 0.12%
Total Current Assets 33.12% 32.87% 30.30% 21.93% 24.62%
Net Property, Plant & Equipment 40.77% 39.49% 41.26% 47.28% 49.92%
Property, Plant & Equipment - Gross 75.22% 72.78% 76.56% 68.88% 73.93%
Buildings 51.10% 49.36% 52.10% 42.97% 47.38%
Construction in Progress 0.42% 0.27% 0.28% 0.26% 0.39%
Other Property, Plant & Equipment 23.70% 23.15% 24.18% 12.10% 13.02%
Accumulated Depreciation 34.45% 33.29% 35.29% 21.60% 24.01%
Buildings 16.39% 15.47% 15.85% 13.22% 14.99%
Other Property, Plant & Equipment 18.06% 17.81% 19.44% 8.38% 9.02%
Total Investments and Advances 7.78% 6.39% 6.16% 4.91% 4.36%
Long-Term Note Receivable 11.67% 13.03% 15.75% 14.26% 8.29%
Intangible Assets 6.55% 5.93% 5.93% 11.01% 11.70%
Other Assets - 0.75% 0.33% 0.17% 0.54%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%
Liabilities & Shareholders' Equity
ST Debt & Current Portion LT Debt 6.44% 5.58% 3.30% 3.88% 3.99%
Short Term Debt 1.94% 2.00% 0.80% 0.68% 0.79%
Current Portion of Long Term Debt 4.50% 3.58% 2.50% 3.20% 3.20%
Accounts Payable 18.89% 19.36% 20.04% 16.05% 17.06%

Income Tax Payable 0.95% 1.34% 0.75% 0.57% 0.62%
Other Current Liabilities 14.41% 15.67% 18.77% 16.36% 12.61%
Total Current Liabilities 40.69% 41.95% 42.85% 36.86% 34.28%
Long-Term Debt 24.40% 20.57% 15.91% 27.13% 28.63%
Provision for Risks & Charges 15.98% 15.93% 8.92% 5.19% 6.16%
Deferred Taxes 0.20% -1.35% -0.04% -0.36% -0.48%
Other Liabilities -1.00% 7.37% 8.76% 7.12% 5.52%
Total Liabilities 80.38% 86.01% 76.65% 76.39% 74.66%
Common Equity (Total) 19.65% 14.04% 23.40% 23.65% 25.38%
Total Shareholders' Equity 19.65% 14.04% 23.40% 23.65% 25.38%
Accumulated Minority Interest -0.02% -0.05% -0.05% -0.04% -0.04%
Total Equity 19.62% 13.99% 23.35% 23.61% 25.34%
Liabilities & Shareholders' Equity 100.00% 100.00% 100.00% 100.00% 100.00%
Income statement of Tesco (Horizontal analysis)
Fiscal year is March-February. All values GBP Millions. 2016 2017 2018 2019 2020
Sales/Revenue 3.68% 6.60% 18.50% 20.07%
Cost of Goods Sold (COGS) incl. D&A 3.42% 5.81% 16.19% 17.26%
COGS excluding D&A 3.37% 5.82% 14.95% 15.83%
Depreciation & Amortization Expense 5.53% 5.29% 66.72% 75.43%
Gross Income -6.28% -29.29% -36.74% -41.60%
SG&A Expense -13.51% -3.87% 7.79% 3.81%
Other Operating Expense - - - -
EBIT 49.54% 57.35% 159.92% 198.46%
Unusual Expense 64.61% -119.16% -55.52% 135.39%
Non Operating Income/Expense -1846.15% 453.85% 15.38% 84.62%
Non-Operating Interest Income 65.52% 51.72% -13.79% -20.69%
Interest Expense 6.82% -17.36% 75.00% 91.94%
Pretax Income 13.00% 485.65% 610.76% 481.61%
Income Tax -261.11% -666.67% -742.59% -803.70%
Equity in Affiliates 409.52% -71.43% -252.38% -185.71%
Consolidated Net Income -77.34% 288.28% 396.09% 265.23%
Minority Interest Expense 55.56% -122.22% -77.78% -122.22%
Net Income -72.83% 274.34% 380.00% 252.08%
Balance sheet of Tesco ( Horizontal analysis)
Assets
Fiscal year is March-February. All values GBP Millions. 2016 2017 2018 2019 2020
Cash & Short Term Investments 4.14% -24.56% -50.65% -31.44%
Cash Only 101.98% 65.09% 7.27% 45.49%
Short-Term Investments -76.21% -98.19% -98.21% -94.62%
Total Accounts Receivable 12.20% 22.11% 27.76% 13.06%

Accounts Receivables, Net 4.91% 6.97% 10.24% -0.71%
Inventories -5.31% -6.83% 7.70% 0.12%
Finished Goods -4.77% -5.44% 9.25% 1.63%
Work in Progress -37.50% -90.00% -85.00% -90.00%
Other Current Assets - -88.56% -77.97% -73.31%
Total Current Assets 3.67% -6.46% -14.17% -11.42%
Net Property, Plant & Equipment 1.16% 3.47% 50.27% 45.85%
Property, Plant & Equipment - Gross 1.05% 4.05% 18.67% 17.08%
Buildings 0.88% 4.23% 8.96% 10.45%
Construction in Progress -33.15% -32.07% -20.65% 9.78%
Other Property, Plant & Equipment 2.02% 4.30% -33.84% -34.54%
Accumulated Depreciation 0.91% 4.73% -18.74% -16.97%
Buildings -1.43% -1.14% 4.52% 8.93%
Other Property, Plant & Equipment 3.04% 10.07% -39.85% -40.48%
Total Investments and Advances -14.26% -19.03% -18.18% -33.20%
Long-Term Note Receivable 16.59% 37.97% 58.26% -15.38%
Intangible Assets -5.46% -7.41% 117.95% 112.91%
Other Assets - - - -
Total Assets 4.44% 2.23% 29.60% 19.13%
Liabilities & Shareholders' Equity
ST Debt & Current Portion LT Debt -9.41% -47.66% -21.83% -26.11%
Short Term Debt 7.87% -58.05% -54.52% -51.47%
Current Portion of Long Term Debt -16.86% -43.19% -7.75% -15.19%
Accounts Payable 7.02% 8.45% 10.10% 7.58%
Income Tax Payable 46.30% -20.05% -22.43% -22.67%
Other Current Liabilities 13.56% 33.14% 47.09% 4.19%
Total Current Liabilities 7.66% 7.65% 17.39% 0.34%
Long-Term Debt -11.93% -33.32% 44.14% 39.79%
Provision for Risks & Charges 4.16% -42.93% -57.87% -54.06%
Deferred Taxes -819.77% -123.26% -334.88% -393.02%
Other Liabilities -871.23% -997.26% -1024.66% -759.13%
Total Liabilities 11.76% -2.51% 23.18% 10.66%
Common Equity (Total) -25.37% 21.75% 55.99% 53.90%
Total Shareholders' Equity -25.37% 21.75% 55.99% 53.90%
Accumulated Minority Interest 140.00% 120.00% 140.00% 120.00%
Total Equity -25.56% 21.63% 55.90% 53.82%
Liabilities & Shareholders' Equity 4.44% 2.23% 29.60% 19.13%
Financial reports of Sainsbury

Income statement of Sainsbury
Fiscal year is March-February. All values GBP
Millions. 2016 2017 2018 2019 2020
Sales/Revenue
23,49
5
26,23
1
28,45
9
29,00
7
28,99
3
Cost of Goods Sold (COGS) incl. D&A
22,10
1
24,72
1
26,59
3
27,08
8
26,83
0
COGS excluding D&A
21,51
7
24,07
3
25,86
3
26,35
1
25,57
4
Depreciation & Amortization Expense 584 648 730 737 1,256
Gross Income 1,394 1,510 1,866 1,919 2,163
SG&A Expense 712 1,164 1,319 1,602 1,319
Research & Development - - - - -
Other SG&A 712 1,164 1,319 1,602 1,319
Other Operating Expense - - - - -
EBIT 682 346 547 317 844
Unusual Expense 87 -38 121 137 295
Non Operating Income/Expense 113 252 66 136 121
Non-Operating Interest Income 19 18 14 3 4
Interest Expense 120 114 109 84 390
Pretax Income 559 540 397 235 284
Income Tax 77 126 100 20 103
Other After Tax Income (Expense) -12 -18 -18 -18 -23
Consolidated Net Income 459 359 291 201 129
Net Income 459 359 291 201 129
Balance Sheet of Sainsbury
Assets
Fiscal year is March-February. All values GBP
Millions. 2016 2017 2018 2019 2020
Cash & Short Term Investments 1,242 1,277 1,943 1,332 1,076
Total Accounts Receivable 2,096 3,260 4,104 4,299 4,762
Inventories 968 1,775 1,810 1,929 1,732
Finished Goods 967 1,774 1,810 1,929 -
Progress Payments & Other 1 1 - - -
Other Current Assets 149 10 9 21 16
Total Current Assets 4,455 6,322 7,866 7,581 7,586
Net Property, Plant & Equipment 9,764 10,006 9,898 9,708 13,737
Property, Plant & Equipment - Gross 15,259 15,529 15,669 15,711 -
Buildings 9,773 10,150 10,245 10,558 -
Construction in Progress 342 299 328 - -

Leases 82 83 98 - -
Other Property, Plant & Equipment 5,062 4,997 4,998 5,153 -
Accumulated Depreciation 5,495 5,523 5,771 6,003 -
Buildings 2,283 2,461 2,622 2,805 -
Other Property, Plant & Equipment 3,182 3,029 3,112 3,198 -
Total Investments and Advances 684 682 789 859 987
Long-Term Note Receivable 1,741 1,975 2,367 3,382 3,496
Intangible Assets 329 803 1,072 1,044 1,012
Net Goodwill 138 250 397 396 -
Net Other Intangibles 191 553 675 648 -
Other Assets - 10 9 967 1,119
Deferred Charges - - - 959 1,119
Tangible Other Assets - 10 9 8 -
Total Assets 17,050 19,961 22,046 23,648 27,937
Liabilities & Shareholders' Equity
ST Debt & Current Portion LT Debt 341 293 763 948 558
Short Term Debt 42 6 2 136 48
Current Portion of Long Term Debt 299 287 761 812 510
Accounts Payable 2,082 2,685 2,852 3,044 4,275
Income Tax Payable 158 219 247 204 163
Other Current Liabilities 4,143 5,389 6,440 7,221 7,051
Total Current Liabilities 6,724 8,586 10,302 11,417 12,047
Long-Term Debt 2,896 2,746 2,298 1,605 7,008
Provision for Risks & Charges 537 1,160 423 160 89
Deferred Taxes 237 162 241 397 265
Other Liabilities 739 789 1,835 2,002 1,251
Other Liabilities (excl. Deferred Income) 476 504 1,534 1,672 1,251
Deferred Income 263 285 301 330 -
Total Liabilities 11,210 13,606 15,144 15,688 20,660

Common Equity (Total) 5,840 6,355 6,902 7,960 7,277
Total Shareholders' Equity 5,840 6,355 6,902 7,960 7,277
Total Equity 5,840 6,355 6,902 7,960 7,277
Liabilities & Shareholders' Equity 17,050 19,961 22,046 23,648 27,937
Balance Sheet of Sainsbury (Horizontal analysis)
Assets
Fiscal year is March-February. All values GBP
Millions. 2016 2017 2018 2019 2020
Cash & Short Term Investments 2.82% 56.44% 7.25% -13.37%
Total Accounts Receivable 55.53% 95.80% 105.10% 127.19%
Inventories 83.37% 86.98% 99.28% 78.93%
Finished Goods 83.45% 87.18% 99.48% -
Progress Payments & Other 0.00% - - -
Other Current Assets -93.29% -93.96% -85.91% -89.26%
Total Current Assets 41.91% 76.57% 70.17% 70.28%
Net Property, Plant & Equipment 2.48% 1.37% -0.57% 40.69%
Property, Plant & Equipment - Gross 1.77% 2.69% 2.96% -
Buildings 3.86% 4.83% 8.03% -
Construction in Progress -12.57% -4.09% - -
Leases 1.22% 19.51% - -
Other Property, Plant & Equipment -1.28% -1.26% 1.80% -
Accumulated Depreciation 0.51% 5.02% 9.24% -
Buildings 7.80% 14.85% 22.86% -
Other Property, Plant & Equipment -4.81% -2.20% 0.50% -
Total Investments and Advances -0.29% 15.35% 25.58% 44.30%
Long-Term Note Receivable 13.44% 35.96% 94.26% 100.80%
Intangible Assets 144.07% 225.84% 217.33% 207.60%
Net Goodwill 81.16% 187.68% 186.96%
-
Net Other Intangibles 189.53% 253.40% 239.27% -
Other Assets - - - -

Deferred Charges - - - -
Tangible Other Assets - - - -
Total Assets 17.07% 29.30% 38.70% 63.85%
Liabilities & Shareholders' Equity
ST Debt & Current Portion LT Debt -14.08% 123.75% 178.01% 63.64%
Short Term Debt -85.71% -95.24% 223.81% 14.29%
Current Portion of Long Term Debt -4.01% 154.52% 171.57% 70.57%
Accounts Payable 28.96% 36.98% 46.21% 105.33%
Income Tax Payable 38.61% 56.33% 29.11% 3.16%
Other Current Liabilities 30.07% 55.44% 74.29% 70.19%
Total Current Liabilities 27.69% 53.21% 69.79% 79.16%
Long-Term Debt -5.18% -20.65% -44.58% 141.99%
Provision for Risks & Charges 116.01% -21.23% -70.20% -83.43%
Deferred Taxes -31.65% 1.69% 67.51% 11.81%
Other Liabilities 6.77% 148.31% 170.91% 69.28%
Other Liabilities (excl. Deferred Income) 5.88% 222.27% 251.26% 162.82%
Deferred Income 8.37% 14.45% 25.48% -
Total Liabilities 21.37% 35.09% 39.95% 84.30%
Common Equity (Total) 8.82% 18.18% 36.30% 24.61%
Total Shareholders' Equity 8.82% 18.18% 36.30% 24.61%
Total Equity 8.82% 18.18% 36.30% 24.61%
Liabilities & Shareholders' Equity 17.07% 29.30% 38.70% 63.85%
Income statement of Sainsbury (Vertical analysis)
Fiscal year is March-February. All values GBP
Millions. 2016 2017 2018 2019 2020
Sales/Revenue
100.00
%
100.00
%
100.00
%
100.00
%
100.00
%
Cost of Goods Sold (COGS) incl. D&A 94.07% 94.24% 93.44% 93.38% 92.54%
COGS excluding D&A 91.58% 91.77% 90.88% 90.84% 88.21%
Depreciation & Amortization Expense 2.49% 2.47% 2.57% 2.54% 4.33%
Gross Income 5.93% 5.76% 6.56% 6.62% 7.46%
SG&A Expense 3.03% 4.44% 4.63% 5.52% 4.55%
Research & Development - -
Other SG&A 3.03% 4.44% 4.63% 5.52% 4.55%
Other Operating Expense - -

EBIT 2.90% 1.32% 1.92% 1.09% 2.91%
Unusual Expense 0.37% -0.14% 0.43% 0.47% 1.02%
Non Operating Income/Expense 0.48% 0.96% 0.23% 0.47% 0.42%
Non-Operating Interest Income 0.08% 0.07% 0.05% 0.01% 0.01%
Interest Expense 0.51% 0.43% 0.38% 0.29% 1.35%
Pretax Income 2.38% 2.06% 1.39% 0.81% 0.98%
Income Tax 0.33% 0.48% 0.35% 0.07% 0.36%
Other After Tax Income (Expense) -0.05% -0.07% -0.06% -0.06% -0.08%
Consolidated Net Income 1.95% 1.37% 1.02% 0.69% 0.44%
Net Income 1.95% 1.37% 1.02% 0.69% 0.44%
Income statement of Sainsbury (Horizontal analysis)
Fiscal year is March-February. All values GBP
Millions.
201
6 2017 2018 2019 2020
Sales/Revenue 11.65% 21.13% 23.46% 23.40%
Cost of Goods Sold (COGS) incl. D&A 11.85% 20.32% 22.56% 21.40%
COGS excluding D&A 11.88% 20.20% 22.47% 18.85%
Depreciation & Amortization Expense 10.96% 25.00% 26.20%
115.07
%
Gross Income 8.32% 33.86% 37.66% 55.16%
SG&A Expense 63.48% 85.25%
125.00
% 85.25%
Research & Development - - - -
Other SG&A 63.48% 85.25%
125.00
% 85.25%
Other Operating Expense - - - -
EBIT -49.27%
-
19.79%
-
53.52% 23.75%
Unusual Expense
-
143.68
% 39.08% 57.47%
239.08
%
Non Operating Income/Expense
123.01
%
-
41.59% 20.35% 7.08%
Non-Operating Interest Income -5.26%
-
26.32%
-
84.21%
-
78.95%
Interest Expense -5.00% -9.17%
-
30.00%
225.00
%
Pretax Income -3.40%
-
28.98%
-
57.96%
-
49.19%
Income Tax 63.64% 29.87%
-
74.03% 33.77%
Other After Tax Income (Expense) 50.00% 50.00% 50.00% 91.67%
Consolidated Net Income -21.79%
-
36.60%
-
56.21%
-
71.90%
Net Income -21.79%
-
36.60%
-
56.21%
-
71.90%