SAINSBURY (J) PLC

SAINSBURY (J) PLC

Assessment Brief/Task
No more than: 6000 words, excluding appendices
You should include all reports used in the work within the appendices
The detailed requirements for this task are as follows:
Module Learning outcomes:
LO1    Analyse and interpret financial statements from the perspectives of different stakeholders
LO2    Critically analyse the role and function of financial information in the
management of a business
LO3    Critically analyse the issues and debates concerning the financing
and investment decisions of firms

You are to select a PLC that has a listing on a recognised stock exchange of your choice and agree this with the module tutor.
I have selected SAINSBURY (J) PLC (SBRY).
As the company accountant you are expected to produce a report for the board of directors focusing on two elements.

You have been asked to produce a Financial Analysis of the company based upon the following ratios for the company for the years 2014, 2012 and 2010  (3 years only).

–    Return on Capital Employed
–    Operating Profit Margin
–    Asset Turnover
–    Current Ratio
–    Gearing
–    Interest Cover
–    EPS
–    PE Ratio

The competitors are:

1-    TESCO (TSCO).
2-    MORRISON (MRW).

Where the ratios cannot be calculated please advise the tutor who will agree an alternative ratio.

The company you have chosen in part one is seeking to purchase land and building which represents 10% of its Net Assets Employed. As accountant you are required to make a proposal as to how the company might access the finance necessary. This might be from internal or external sources but must be based upon the company performance and capital structure. You should justify your choice.

The following information is important when:
•    Preparing for your assessment
•    Checking your work before you submit it
•    Interpreting feedback on your work after marking.

Assessment Criteria
The module Learning Outcomes tested by this assessment task are indicated on page 1. The precise criteria against which your work will be marked are as follows:
The proportions of the assignment should be
1.    An analysis of the industry of which the company is a part (15%)
2.    Comparison of company performance with industry based upon ratios calculated (40%)
3.    Analysis of the different sources of finance available to your company and how it might apply to the chosen company (35%)
4.    Summary and justification for choice of financing (10%)

Performance descriptors
Performance descriptors indicate how marks will be arrived at against each of the above criteria. The descriptors indicate the likely characteristics of work that is marked within the percentage bands indicated.
Criteria    Distinction 70-100%    Merit 60-69%
Analysis of industry (15%)    Assignment demonstrates that a wide range of sources have been researched and incorporated in the analysis. The assignment has synthesised this information and provides an analysis which recognises and details the key aspects of the industry
Assignment demonstrates that a reasonably wide range of sources have been researched and incorporated in the analysis. The assignment has brought together this information and provides an analysis which recognises and details most of the key aspects of the industry

Financial Analysis of Company(40%)    Assignment produces an excellent analysis of the company’s performance which includes relevant ratios , which have been explained as to their role, comparisons provided and proposed reasons for changes, differences with comparisons and means of improvement    Assignment produces a very good analysis of the company’s performance which includes most of the relevant ratios , explanations of their roles, comparisons, proposed reasons for change, differences with comparisons and means of improvement
Analysis of the sources of finance available and how it might relate to the company’s situation (35%)    Assignment produces an excellent analysis of the Sources of finance available and their relevant/appropriateness to the company. This critical analysis uses a wide range of relevant theories.     Assignment produces a thorough analysis of the Sources of finance available and their relevant/appropriateness to the company. This critical analysis uses a wide range of relevant theories.
Justification for choice of finance. Summary/presentation (10%)    Assignment makes an excellent case for the choice of finance chosen. Clarity of expression is excellent. Consistent/ accurate use of grammar and spelling using an academic writing style. Presentation standard of the assignment is excellent; consistent with academic protocol.  Referencing clear,relevant and consistently accurate using theHarvard system    Assignment makes a robust case for the choice of finance chosenThoughts and ideas clearly expressed. Grammar and spelling accurate and fluent. Presentation overall of good standard with few errors in grammar and syntax.  Referencing relevantand mostly accurateusing the Harvardsystem.

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