Ratio Analysis of J Sainsbury plc Financial Performance between 2015 and 2018 in Comparison with Tesco and Morrisons
- 1 Business School, Newcastle University, New Castle upon Tyne, UK
- 2 Research Institute of Foreign Languages, Beijing Foreign Studies University, Beijing, China
Abstract
Financial ratio analysis is an analysis of a company’s financial statements, and it is vital for identifying negative and positive trends of a business over time. This article sets out to provide a detailed analysis of the financial performance of J Sainsbury plc and compare it with the performance of Tesco and Morrisons. From the data analysis, it can be shown that from 2015, the financial performance of J Sainsbury plc is improving with an increasing trend in its sales revenue and gross margin, while there is a decreasing trend in its return on assets (ROA), operating profit, pretax profit margin, finance cost and net profit. Compared to the other two companies in the same industry like Tesco and Morrisons, the performance of J Sainsbury plc is somewhat satisfactory. Finally, some recommendations on financial aspects, business environment and strategies are offered to enhance J Sainsbury plc’s performance and promote its sustainable development.
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