Financial Analysis of Sainsburys Performance - 2960 Words

Introduction J Sainsbury plc was founded in 1869 in Drury Lane by John James and Mary Ann Sainsbury, and is one of the oldest supermarkets in the United Kingdom. Its current company structure comprises of a chain of 547 supermarkets, 343 convenience stores and the recent addition of Sainsbury’s Pharmacy and Sainsbury’s Bank (which is a joint venture with the Lloyd’s bank group). Currently their customer profile consists of approximately 19 million customers’ each week and a surplus of an estimated 2,000 suppliers. Its employee structure consists of approximately 150,000 individuals and it is still expanding. The current Chief Executive Justin King believes the Sainsbury’s success and profitability can be accredited by â€Å"... our values†¦show more content†¦This is because all preferred shares converted into deferred shares and all transactions regarding to these shares have now been completed. However, as with ordinary shares, the authorized share c apital of preference shares has remained the same for the two periods. This illustrates that Sainsbury’s has the further capacity to raise revenue by issuing the preference shares at a value of 35pence, of which they currently are authorized to issue 2100 million. These have the value of  £735million. The financial reports are comparable to that of Tesco. The Annual Report shows that the authorized share capital in 2009 was 10858 million. This increased during the year to 13358 million. Between 2008 and 2009 there was a share issue of  £3milllion shares which resulted in a share premium of  £127million increase. Between 2009 and 2010,  £4million share were issued which resulted in a  £163millionincrease in share premium. These figures can be compared to that of Sainsbury’s. Between 2009 and 2010 there is a much larger increase in the amount of shares issued for Sainsbury’s than there was for Tesco. However, Tesco still resulted in a higher total share premium of 4801millionShow MoreRelatedIntroduction to J. Sainsbury Plc910 Words   |  4 Pages  Ã‚  Ã‚  Ã‚  Ã‚  Company analysis   Ã‚  Ã‚  Ã‚  Comparative analysis   Ã‚     Ã‚  Financial Ratio Analysis   Ã‚  Ã‚  Ã‚  Gearing/Financial Risk   Ã‚  Ã‚  Ã‚  Ã‚  Evaluation of Financial Analysis   Ã‚  Ã‚  Ã‚  Introduction The objective of financial reporting/statements is to provide information about the reporting entity’s financial performance and financial position that is useful to a wide range of users for assessing the stewardship of the entity’s management and for making economic decisions. This is a report on the operations of J. SainsburyRead MoreSwot Analysis of Sainsbury’s Plc.1151 Words   |  5 PagesAbstract Sainsbury’s is the third largest store chain inUKand 80th placed in FTSE 100 companies with market capitalisation of  £ 5,457.35 million. 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