We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Investment Analysis: Sports Direct vs. JJB Sports - Essay Example

Comments (0) Cite this document
Running Head: Investment Analysis “Investment Analysis: Sports Direct vs. JJB Sports” Your Name University Date Sports Direct Investor Ratios for the FY 2010, 2011: Figure 1: Sports Direct Investors Ratios: Figure 1 above summarizes the investor’s performance in the company Sport Direct…
Download paper
Investment Analysis: Sports Direct vs. JJB Sports
Read TextPreview

Extract of sample
Investment Analysis: Sports Direct vs. JJB Sports

Increase in taxes is another reason why the company’s performance in terms of EPS. P/E is also another very important measure to assess the company’s shares in terms of their earning potential. In the case of Sports Direct, 2010 P/E ratio could not be calculated because the historical market price was not available in the financial statements. In 2011, the company was able to earn the P/E ratio of 19.5. This means that investors are needed to invest €19.5 in the company for every €1 of earning. The ratio is quite high and looking at this measure it looks like that the stock is trading at a very high price and therefore investors should only invest in the shares of the company once the price of the stock comes down. The company paid out around 8.33% of its earning as dividend in the fiscal year 2010. However, the company did not pay any dividend in the FY 2011. This is in line with the company’s objective of growth. Since, the company wants to expand it needs more money and as a result it has cut down the dividends on shares in order to finance its expansion. As a result we see that Dividend per share ratio has also come down from around 6.94% to 0%. The company is cutting down on dividends in order to finance its growth. Another ratio that shows that the company is conservative in its approach of paying dividends is the dividend cover ratio. The company’s ratio in the FY 2010 was 226.7x. It declined to 0x in the year FY 2011. This means that in FY 2010, Sports Direct was paying €1 in dividends for every €227 of earnings. However, it has come down to 0 because the company wants to grow and it needs the money of the shareholders. Investment Ratios for JJB Sports: Figure 2: Investment Ratio Summary for JJB Sports for the Years FY 2010, FY 2011 Figure 2 clearly shows that JJB Sports had two very bad years in terms of investment ratios. The company could not make any profit in these two years. As a result EPS figures for FY 2010 and FY 2011 remained negative. However, the magnitude of loss increased in the FY 2011 which is reflected by a bigger negative EPS number in the FY 2011. Loss per Share in the year 2010 was around €20. It increased to almost €62 per share in the Fiscal Year 2011. Again it was impossible to calculate the P/E ratio of JJB Sports for the years 2010 because the historical market price data was not available on the internet and it wasn’t even available on the financial statements. The company P/E ratio for the FY 2011 wasn’t good either. The company secured a negative P/E ratio which is meaningless. Since, company made a loss in the FY 2010, the payout ratio was negative. It means that the company used its previous earning reserved to pay €54,000 worth of dividends. This was done to appease the shareholders who might be fuming over the company’s policies and loss making. DPS remaining extremely low in the year 2010 and it declined to 0 in the year 2011. This is due to the fact that company was making losses and even it Cash flow activities showed negative results. Other than that, the company’s dividend cover is also negative because of its inability to pay decent amount of dividends which has resulted in a very high negative number for Dividend cover. In 2011, the ratio is 0 because of the inability of the company to pay any dividends. All in all the company is in crises and investors should not invest in the company because they have a high chance of losing their money in JJB ... Read More
Cite this document
  • APA
  • MLA
(“Investment Analysis: Sports Direct vs. JJB Sports Essay”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/61672-sports-direct-and-jjb-sports
(Investment Analysis: Sports Direct Vs. JJB Sports Essay)
“Investment Analysis: Sports Direct Vs. JJB Sports Essay”, n.d. https://studentshare.net/finance-accounting/61672-sports-direct-and-jjb-sports.
  • Cited: 0 times
Comments (0)
Click to create a comment
Direct marketing plan for expatriate sports and health centre
The focus of this work involves developing a modern facility which will be universally completed with the necessary requirement for the expatriates. The health/sports centre will use new brands for its strong identification in order to allow it to build itself as a fully fletched organization.
12 Pages(3000 words)Essay
Strategic management on JJB Sports
However, there is need for need for strategic change in the digital competitive environment of 2013 in order to revitalise business in this area. It is imperative to implement strategic management initiatives in order to turn around the fortunes of business in this area.
12 Pages(3000 words)Essay
The author of the text describes the sports of basketball and volleyball from different angles as he/she has to make a choice in favor of one of the activity. Reportedly, approximately 50 boys and girls from the 6th grade participated in either basketball or volleyball. Notably, as the class size was big the teachers split the students into different groups as per their choice.
4 Pages(1000 words)Essay
Nations like the USA has many races and racism is known to dominate some of its states. This has adversely affected sports because there are certain groups of races who see themselves as superior in certain sports, and that the sports are not fit for other races.
3 Pages(750 words)Essay
One of the most important things about sports, however, is the huge cultural, political and economic impact they have had on human being over the many years they have been around. Few human activities have more to say about humankind and its aspirations than sports.
3 Pages(750 words)Essay
It would be boring if everyone enjoyed the same sport because people would eventually lose interest in sport. Because there are a variety of sports, anybody can choose which sport they will follow. Even though there are many types of
2 Pages(500 words)Essay
Sports direct and JJB sports
Increase in taxes is another reason why the company’s performance in terms of EPS. P/E is also another very important measure to assess the company’s shares in terms of their
4 Pages(1000 words)Essay
For example, the 100 Metres race is known to be dominated by black people. White people shy away from it because they assume that they do not have the energy to
3 Pages(750 words)Essay
I learnt there are many aspects to drag racing, prominently the commercial and technological facets to the sport. What follows is my response to the short documentary. I learnt the reasons why Hotroders
2 Pages(500 words)Essay
Sports coaching analysis
The coach usually applies some skills which are usually gained through formal education and training or through experience and observation (Knowles et
6 Pages(1500 words)Essay
Let us find you another Essay on topic Investment Analysis: Sports Direct vs. JJB Sports for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us