FINANCIAL ANALYSIS

Financial Analysis on Sainsbury and Tesco

Abstract

In this study we try to explore concept of financial analysis in the holistic context. The main focus of research is on financial analysis & and the comparison between two companies which are Tesco & Sainsbury, they are direct competitors in retailing industry. The research also analyzes many aspects of financial performance & tries to gauge its effect on “Tesco & Sainsbury”. Finally research describes various Factors which are responsible for financial performance & tries to describe its overall effect on “Tesco & Sainsbury”.

Table of Content

Contents

Introduction4

Sainsbury Information5

Tesco Information6

Financial Position8

Sainsbury Financials9

Tesco Financials12

Discussion15

Sainsbury16

Ratios Analysis16

Profitability and Performance17

Financial Position18

Liquidity and Solvency19

TESCO plc20

Performance and Profitability20

Financial Position20

Conclusion21

References24

Financial Analysis on Sainsbury and Tesco

Introduction

The aim of this research is to analyze the effects of financial analysis for empirical testing of implication & validity of the fashioned paradigms. This research paper focuses different aspects of financial performance keeping in view its impact & relations with two organizations, namely Sainsbury & Tesco they are direct competitors in retailing industry.

The paper presents an analysis of the company's place within its industry sector. The concerns of investors have been apprehended by corporate financial analysis in current century & since last few decades main subject for empirical examination & intensive theoretical modelling. There are different methods to analyse financial statements, which are sometimes conflicting as well which somehow lack power of empirical support, interpret behaviour related to financial performance analysis.

The study hunts the financial analysis of Tesco & Sainsbury sways performance & future desires or changes in forecasted financial performance that are required.

Sainsbury Information

J. Sainsbury is principally engaged in grocery and associated retailing. Company offers complementary non-food products and services in many of its stores.

Supermarkets, hypermarkets & other buys bistros clustered firmly in south of England, conference centre nourishment on the large scale in Britain & wine retailer J Sainsbury plc & Sainsbury's, as is commonly known. The expansion of company throughout the time span of 125 years has been careful but relentless acceleration in aforementioned two past decades in these 100 years, & comes to overseas in late 1980. Unlike numerous of its competitors - has diversified into other components of rental companies at odds with slow advancement is anticipated in food shop trade Retail - Sainsbury's advanced to construct retail enterprise in its present form.( Easterbrook, 2004, 220-30)

Sainsbury's not only biggest retailer in UK nourishment & wine, but furthermore most of its highly considered, as asserted by reassess country's trade analysts & executives. The company has come to top or beside greatest marks for worth of items & services, flourishing development, charge, money, general economic production, advocating & sophisticated marketing & administration as well as recruitment, teaching & keeping high calibre employees. More than the third of Sainsbury's own party employees in company. (Downs, 2001, 6-17)

Tesco Information

Tesco is engaged in retailing and related activities. Company's Core U.K segment consists of four different store formats: Express Metro, Superstore and Extra, as well as one trial format called Home ...