Sainsbury and NHS Assignment Example | Topics and Well Written Essays - 1500 words

Sainsbury and NHS - Assignment Example The paper analyzes Sainsbury and NHS based of their financial and accounting performances. First paper of the paper analyzes the financial performance of the two companies whereas the second part comments upon the accounting profit as a measure to the organization. This includes critical discussion on the relevance of accounting profit as a performance measure in an organization. The financial analysis of two companies would be based on the CORE framework. Sainsbury Plc is a company listed in London Stock Exchange and is engaged in primarily the retailing business. The other businesses of the company include financial services and retail investment businesses within UK (Sainsbury Annual Report 2010). With the help of e-commerce technologies, the company provides home-delivery shopping services to its customers through internet. With a market capitalization of 1.59 billion, the company currently operates in over 900 stores in and around UK. The company was incorporated in 1869 with he adquarters in London (Sainsbury Annual Report 2010). National Health Service (NHS) was incorporated in 1948 in United Kingdom and is now the world’s largest publicly funded health service. The services of national health services are free of cost for anyone residing in UK. . It covers everything from antenatal screening to open heart surgery, accident and emergency treatment and end-of-life care (NHS Choices 2011). NHS is also certified with The Information Standard. NHS also has a fully functional website, which helps patients to provide online information and online services  . A patient can have access to the medical advice through the website of NHS (NHS Choices 2011). It also has a symptom checker that can assist patients in determine their disease, by checking for the symptoms and matching it with their own level of comfort. Analysis Sainsbury Key Financials       31/03/2010    31/03/2009    31/03/2008    31/03/2007    31/03/2006    mil GBP mil GBP mil G BP mil GBP mil GBP                   Turnover 19,964 18,911 17,837 17,151 16,061 Profit (Loss) before Taxation 733 466 479 477 104 Net Tangible Assets (Liab.) 7,918 6,954 6,850 6,680 7,746 Shareholders’ Funds 4,966 4,376 4,935 4,349 3,886 Profit Margin (%) 3.67 2.46 2.69 2.78 0.65 Return on Shareholders’ Funds (%) 14.76 10.65 9.71 10.97 2.68 Return on Capital Employed (%) 9.09 6.55 6.83 6.96 1.31 Liquidity Ratio (x) 0.41 0.30 0.40 0.50 0.68 Gearing (%) 63.81 66.09 44.54 65.97 169.92 Number of Employees 97,300 97,300 98,600 95,500 96,200 Top Grocery Stores Companies by Market Cap Company Symbol Price Change Market Cap P/E Tesco PLC TSCO.L 407.25   0.27% 10.87B 437.90 J Sainsbury PLC SBRY.L 341.90   0.06% 1.59B 236.77 Greggs PLC GRG.L 513.00   0.59% 1.53B 4,130.14 Wm Morrison Supermarkets PLC MRW.L 288.30   0.70% 1.53B 246.41 Ocado Group PLC OCDO.L 234.80   3.25% 1.22B N/A Wesfarmers Limited WESN.AX 33.31   0.42% 77.08B 41.40 Source: NHS Key Fina ncials PROFILE 31-01-10 31-01-09 31-01-08 31-01-07 31-01-06 Turnover 214,300 248,000 236,100 241,300 246,300 Profit (Loss) before Taxation -8,700 -17,400 3,100 4,000 15,700 Net Tangible Assets (Liab.) 70,700 102,600 104,900 107,300 114,800 Shareholders’ Funds 71,100 102,200 117,000 119,700 125,900 Profit Margin (%) -4.06 -7.02 1.31 1.66 6.37 Return on Shareholders’ Funds (%) -12.24 -17.03 2.65 3.34 12.47 Return on Capital Employed (%) -11.90 -16.59 2.61 3.29 12.28 Liquidity Ratio 1.21 1.33 1.62 1.52 1.51 Gearing Ratio (%) 2.81 3.23 3.93 7.60 4.77 Number of Employees 3,173 3,407 3,247 3,183 3,082 Ratio Analysis For analyzing the financial performance of Sainsbury and NHS, ratios would be an effective tool of control. In the