Applied Financial Management - J Sainsbury Plc - Case Study Example

Download file to see previous pages The paper "Applied Financial Management - J Sainsbury Plc" is a perfect example of a finance and accounting case study. Sainsbury Plc. is a leading retailing company based in the United Kingdom. Sainsbury is renowned as one of the largest and oldest retail companies in the world. The headquarters of the company is located in the Sainsbury Store Support Centre in London. The company was found in 1869 and currently, it has more than 1203 convenience stores and supermarkets under the brand. Presently Sainsbury is the second-largest retail chain in the United Kingdom. Sainsbury Plc. is also one of the most preferred employers in the world which has more than 157, 000 employees across its operation’s in various countries. The holding company in the group is J. Sainsbury Plc. The holding company has three main divisions including the Sainsbury Convenience stores or Sainsbury local, Sainsbury’s supermarket and Sainsbury’s Bank. The stocks of Sainsbury Plc. are listed in the London Stock Exchange and belong to the FTSE 100 of the London Stock Exchange. The stocks of Sainsbury are considered to be important investment options for the investors including booth the institutional investors and the private investors. Sainsbury Plc. is efficiently managed by its management and provides value creation for the customers through its products and services which have ensured that the company is able to maintain high profitability, strong financial position, a wide base of customers and a fair market share in the retail industry. The company has exhibited a steady increase in profitability and revenues of the company due to its high financial and operational performance.
   

2013

2012

2011

 

 

 

 

Return on capital employed

9.3%

9.5%

10.1%

Gross profit margin

5.5%

5.4%

5.5%

Operating profit margin

3.8%

3.9%

4.0%

Net profit (after tax) margin

2.6%

2.7%

3.0%

Quick ratio

29.3%

34.9%

30.9%

Receivables collection period

19

19

24

Inventory holding period

16

16

15

Payables payment period

32

33

34

Gearing ratio

1.21

1.19

1.10

Interest Cover

6.9

7.0

7.5

 

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