Financial analysis of Sainsbury plc and Tesco Plc Essay

financial analysis of Sainsbury plc and Tesco Plc - Essay ExampleThe paper entrust highlight the recognise features and the current strategies directed by the companies followed by the Calculation of financial ratios for each company, and Compare with earlier years, that leave alone to judge the financial performance and position for the company, and to interpret if the companys assessment of its own performance as shown in the Financial Highlights and Chairmans Statement a good representation. Then comparison of the two companies together, followed by comparison with the industrial average. The basic structure of this research essay will be divided to five sections Firstly brief definitions of the companys activities and their major business, when they operate as well as the current strategies directed by the company and as well why choose these two firms Secondly The calculation of the financial ratios Thirdly Financial Analysis Fourthly the limitations of ratios Finally summ ary and conclusions. This research essay will alike make a research into thedifferent type of stock hurt prediction casts and will select the time series model to predict the stock price for two years and then compare them with the actual stock price of the above companies and present the reasearch findings and will make a detailed analysis of the same.A intercompany analysis between Tesco and Sainsbury will be carried over and also a comparison with the industrys average will also carried over to know how these companies are performing as compared to the industrys average. 1. Short Narration of the Activities of the Companies Sainsbury Plc Sainsbury organism a supermarket chain, J. Sainsbury Plc is a renowned seller operating from London and also ventured into construction activities, real dry land and owning a commercial bank in UK. Established in the year 1869, Sainsbury is having roughly 337 convenience stores and 557 Supermarkets, and Sainsbury owns a floor space ranging from 15,000 to in excess of 40,000 square feet and has supermarket branches throughout the UK and in the UK and about forty share of these products are own brands of Sainsbury. Salisbury is having more than 5000 own brands in health and food sector. Apart from the grocery store and food products, the majority of the Sainsbury stores offers fish and meat counters, a delicatessen, bread baked on the premises of Sainsbury, chocolate shops, pharmacies, gas stations and restaurants. By sales value, Salisbury is the largest UK retailer of Fairtrade products as it sourced ethically and responsibly or so ?280 million in the year 2011 alone. Under the brand names of Jacksons and Bells Stores, Sainsbury manages its convenience stores and also offers a variety of the local brand mainly through the Shell franchise. Sainsbury also markets its own brands on with specialty and ethnic food products like Indian, American, Asian, Italian, low-priced products and organic products. Sainsbury also added house wares and clothing to its retail list of products. Sainsbury also owns a bank in collaboration with the Bank of Scotland, which was the first-ever bank owned by a supermarket in the UK, and its clients numbers have surpassed more than two million numbers as of date. With ascertain to land associated with the Sainsbury Supermarkets, it is being managed by Sainsbury Property Company and JS Developments, a Sainsburys real estate growing company. State the different sectors in which saninsbury deals, % revenue In 2006, Sainsbury acquired 4 stores from Somerfield. (Plunkett 2008). As of 2011, Sainsbury is having in a calendar week around 21 million customer transactions and have a market share around 16% in the UK. Sainsbury is offering employment to more than 150,000 individuals. During the year 2011, Sainsbury opened extra 47 convinient stores, and it had