Managerial Finance Research Paper Example | Topics and Well Written Essays - 1500 words

Managerial Finance - Research opus Example19964 million. J Sainsbury plc consists of Sainsburys - a chain of 547 super foodstuffs and 343 convenience stores and the Sainsburys Bank (Jsainsburys, 2011). One of the just about innovative services offered by the ships company is its online servicing and devolvey system. Customers back make their purchases online and Sainsbury will deliver to 90% of the UK households. The system generates over 100,000 orders per week. The firm has a division called Sainsbury Property that has a portfolio that includes 297 freehold and long leasehold properties and 43 joint venture properties (Jsainsburys). The retail operation of the company generates 19 million customers transaction every week. quintette Business Ratios (2009-2010) 2009 2010 Net margin 289 / 18911 = 1.53% 585 / 19994 = 2.93% Current ratio 1268 / 4511 = 0.28 1797 / 2793 = 0.64 Return on capital 289 / 4157 = 6.95% 585 / 4966 = 11.78% Debt ratio 9836 / 5679 = 1.73 10855 / 5889 = 1.84 recompense per component part 16.6 32.1 Sainsbury vs. FTSE100 index This part of the paper will demonstrate a comparison between the market price of the Sainsbury common rip and the FTSE 100 index. The graph that show the movement in the price of the stock and the index are illustrated in appendix A and appendix B. In order to evaluate the results advance qualitative information based on company discussion is going to be used to set about to interpret the results of the graph. The FTSE graph shows many fluctuations in up and down with the steepest downward in July 2011. Overall the habitual trend of the index prices was that the price of the index went up during the last year. During the first quartile of the graph the trend in prices of the Sainsbury was very similar to the movement in the FTSE 100 graph. The price of the Sainsbury stock peak in kinfolk 2010 and it bottom out during April of 2011. A piece of news that always shakes the price of common stocks is the release of quarterly results. The latest quarterly results of the company were released in March 23, 2011. The graph illustrates that after the release of this piece of news the price of the stock after being the lowest point during the last year it began to steadily go up until May of this year. Analysis of Sainsbury fiscal performance In order to determine the viability of Sainsbury (J) as contingent stock investment alternative this paper will analyze the companys overall financial performance. The analysis includes their operations and how Sainsbury (J) compares with other similar stocks and its industry sector. By comparing break financial ratios we can visualize the overall financial position of the company and how the company compares to its overall industry sector in order to determine its attractiveness as a stock investment in a individualized investment portfolio. Sainsbury (J) has become a drawing card in the grocery foods sector with a 16.9% market share in the UK. The comp any has made a number of fundamental changes in recent years in order to enhance overall competitiveness and fuel future growth. Sainsbury is known to be the world leader in Fair Trade Products with around 25% of all Fair trade Products in the UK. The company was also named Supermarket of the Year at the 2009 Retail Industry Awards for their efforts to innovate and adapt to changing customer require over the last year. Sainsburys operational focus is centered accelerating future growth and sustainability. The five key operational areas the company focuses on in order to further increase its market