Sainsbury Financial Analysis

J Sainsbury plc
Background of the company:
J Sainsbury PLC is one of largest retail chains in the United Kingdom. It was found in 1869 and publics known it as Sainsbury’s. Sainsbury’s operates about 1106 supermarkets and convenience stores across the England and has employed 157000 work forces.( J Sainsbury Plc,http://www.j-sainsbury.co.uk/about-us/)
It mainly do their   business in

Analysis:
Perfemence:
According to its income statements and balance sheets from March 2009 to March 2013, we can view the performance of Sainsbury’s and measure how successful it operates in the industry. Firstly, we concentrate on the ratio of return on capital employed.
ROCE= profit before taxation and long-term loan interest / net asset( equity +long term debt)
There is slight fluctuation on return on capital employed from 2009 to 2013. specifically, the ratio of return on capital employed from2009 to 2011 had increased from 8.65% to 11.38%, while it continually decreased from 2011 to 2013 arrived at 9.79%.   Decrease on ratio indicates the decrease on profits Sainsbury’s had earned from its capital it invested.
Net profit margin= profit before tax and long-term interest/ sales
Even though operating margin of Sainsbury’s in 2013 is bigger than in 2009 (3.63% and 3.44% respectively), Sainsbury’s have experiences modest decrease from 2010 to 2013(from 3.92% to 3.63%).   That information illustrates that Sainsbury’s controls the expenses inefficiently or it reduces its sell sale prices from 2010 to 2013.
Gross profit margin= gross profit/ sales


Income Statement  (£ m) | 16-Mar-13 | 17-Mar-12 | 19-Mar-11 | 20-Mar-10 | 21-Mar-09 |
Continuing Operations |
Revenue  | 23303.00 | 22294.00 | 21102.00 | 19964.00 | 18911.00 |
Operating Profit/(Loss)  | 887.00 | 874.00 | 851.00 | 710.00 | 673.00 |
Net Interest  | 128.00 | 124.00 | 113.00 | 110.00 | 140.00 |
Profit Before Tax  | 788.00 | 799.00 | 827.00 | 733.00 | 466.00 |
Profit...