J Sainsbury - Financial Performance of Last 5 Years

1.EXECUTIVE SUMMARY J Sainsbury plc is a UK based lodge, into grocery, related sell an pecuniary services business. The study is primarily to do financial assessment of this company and its performance relative to its peers and industry. see the furthermost 5 years report, it is evident that company was in a bad share 3 years ago, and now its in the stage of recovery. Starting 2004, there has been a major transfer in the board, as well as management. Since then company has taken several large and aggressive approach. This can be summarised as renovating/ ex-panding retail space, re-engineering of supply chain, and improvement in IT system. excessively there has been focus on brand repositioning through and through quality improvement, cost reduction through increasing volume, and so forth This has resulted into good numbers for its sales and remuneration allowance account. The first occasion the new CEO Justin King did was to reduce price by 5% in most of the items, so that they re-gain custom-ers confidence. If we see from a years perspective, company is highly squeezed in basis of cash flow, very less net profit margin compared to industry. They confuse a high pressure on meliorate their margins. Comparing them with their peers Tesco, Wm Morrison, and others, we found that Tesco is obviously market leader, so have a very high profit margin.

If compare with the nighest competitor Wm Morri-son, even though they relatively smaller in size of business, but they have much better profit margin and revenue per sq ft, with less number of stores. In legal injury of investors point of view also they have tried to bear it with higher dividend of 9.75p compared to last years 8p. They have also ensured to confine the dividend cover to 1.5. Ana-lysts and investors are not very upbeat about this stock, seeing the bad performance in last 3 years and would be very conscious in investing. Seeing the last years growth pattern and the doing of some of the set targets (sales, cost cutting, quality growth) one should... If you motivation to get a full essay, order it on our website: Orderessay

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