and Sainsbury plc Annual Financial Reports 2009

Wm MORRISON plc
m

ITEMS
Gross Profit
Revenue

SAINSBURY plc

2009
913

Change
%
11.61%

2008
818

2009
1,
036
18,
911

14,528

12%

12,969

671

9.6%

612

Total Assets

8,226

7.72%

7,636

Current Assets

1,066

17.1%

910

Current Liabilities

2,024

9.2%

1,853

673
10,
033
1,
591
2,
919

Profit from Operations

Change
%

2008

3.39%

1,002

6%

17,837

26.9%

530

- 0.8%

10,115

- 7.6%

1,722

10%

2,652

Inventories

494

11.76%

442

689

1.1%

681

Trade Receivables

105

11.7%

94

53%

32

1,443

- 0.8%

1,152

13,615

12%

12,151

Long-Term Loans

1,049

35.5%

774

Equity

4,520

3.24%

4,378

49
1,
728
17,
875
2,
177
4,
376

60

148

12%

132

1.1%

1,718.7

- 13%

19.10

Trade Payables
Cost of Sales

Finance Cost
N. Ordinary Shares in
issue
EPS (pence)
Profit after Tax
Market Price per Share
Dividend Paid (pence)
Depreciation

60

2,644.9

- 0.7%

2,664.3

17.39

- 16.3%

20.79

460.0
277.36 p

- 16.9%
-

554.0
233.5 p

1,7
38.5
1
6.60
2
89.0
326.5 p

4.8

13.2

5.8

20.8%
straight line

1.46%

1,703

6.1%

16,835

6.8%

2,037

- 11.3%

4,935

- 12.1%
10%
straight line

329.0
269.25 p
12.0

Source: Wm Morrison Supermarkets plc annual Financial Report 2009 and Sainsbury Annual
Financial Report 2009

FIGURE 5: Ratio Calculations

Ratios
Profitability Ratios
Gross Profit =
GP/Revenue*100
Profit Margin = Profit from
Operations/Revenue*100
Assets Turnover =
Revenue/Total Assets

Sainsburys plc
2009

2008

2009

2008

913/14,528*
100
671/14,528*
100
14,528/8,226

818/12,969*
100
612/12969*
100
12,969/7,636

1,036/18,91*
100
673/18,911*
100
18,911/10,033

1,002/17,837*
100
530/17,837*
100
17,837/10,115

105/14,528*365

94/12,969*365

49/18,911*365

32/17,837*365

1,143/13,615*
365

1,152/12,151*
365

1,728/17,875*
365

1,703/16,835*
365

1,049/(4,520+
1,049)*100

774/
(4,378+774)*100

2,177/(4,376 +
2,177)*100

2,037/(4,935+
2,037)*100

1,049/4,520*100

774/4,378*100

2,177/4,376*100

2,037/4,935*100

671/60

612/60

289/148

329/132

17.39 p

20.79 p

16.6 p

19.1 p

277.30/17.39

233.50/20.79

326.50/16.60

269.25/19.10

17.39/277.30

20.79/233.50

16.60/326.50

19.10/269.25

5.8

4.8

13.20

12

17.39/5.8
5.8/277.30

20.79/4.8
4.8/233.50

16.60/13.20
13.2/326.50

19.10/12
12/269.25

Financial Management
Receivables Collection Period =
Trade Receivables/Cost of
Sales*365
Payables Payment period = Trade
Payables/ Cost of Sales*365

Gearing Ratios
Debt Ratio = Long-Term
Loans/Equity+Long-Term
Loans*100
Debt/ Equity Ratio = Long-Term
Loans/Equity*100
Interest Cover = Profit from
Operations/Interest Charges

Investment Ratios
Earnings Per Share (EPS, in
pence) given Annual Report 2009
Price Earning Ratio (P/E) =
Market Price per Ordinary
Share/EPS
Earning Yield = EPS/Market
Price of Ordinary Shares*100
Dividend Per Share (in pence)
given Annual Report
Dividend Cover = EPS/DPS
Dividend Yield = Dividend per
Share/Market Price*100

FIGURE 6: Ratio Result Calculations

Ratios
Profitability Ratios
Gross Profit
Profit Margin
Assets Turnover

Wm Morrison plc

Sainsburys plc

2009
6.28%
4.61%
1.76 times

Change
- 0.02%
- 0.11%
0.07

2008
6.30%
4.72%
1.69 times

2009
5.47%
3.5%
1.88 times

Change
- 0.14%
0.53%
0.12

2008
5.61%
2.97%
1.76 times

Receivables Collection
Period

2.6 days

2.6 days

0.9 days

0.65 days

Payables Payment period

30.6 days

4 days

34.6 days

35.2 days

1.7 day

36.9 days

18.8%
23%
10.28
times

3.8%
6%
-

15%
17%
10.2 times

33.22%
49.7%
1.95 times

4.02%
8.5%
-

29.2%
41.2%
2.49 times

17.39 p

- 3.4 p

20.79 p

16.6 p

- 2.5 p

19.1 p

15.94

4.71

11.23

19.66

5.66

14

6%
5.8 p

2%
1.0 p

8%
4.8 p

5%
13.2 p

2%
1.2 p

7%
12 p

2.99 times
2%

- 1.34
-

4.33 times
2%

1.2 times
4%

- 0.39
0.45%

1.59 times
4.45%

Financial Management

Gearing Ratios
Debt Ratio
Debt/ Equity Ratio
Interest Cover
Investment Ratios
Earnings Per Share (EPS, in
pence)
Price Earning Ratio (P/E)
Earning Yield
Dividend Per Share (in pence)
Dividend Cover
Dividend Yield