Finance Assignment Example | Topics and Well Written Essays - 1500 words

Finance - Assignment Example joint venture. Sainsbury’s offers food and non-food items at its supermarkets and convenience stores along with that it also operate online grocery store and general merchandise operations. Sainsbury operates almost 1106 stores that includes 583 supermarkets and 523 convenience stores. Company also holds interest in freehold and long lease hold properties and also the properties that come under their joint venture agreements. In its financial services sectors it provides credit cards, insurance, loans and savings advices also relating to energy efficiency at customer homes. Sainsbury also provides selection of movies, music, books, games and other entertainment products (Yahoo, 2013). Sainsbury’s holds almost 18% share of the UK supermarket and is the second largest supermarket chain in the country. Despite the fact that Sainsbury is the UK’s second largest supermarket chain it is the returns that the company offers that would attract the investors and the share towards the company not the quality of the services or the size of company itself. In order to understand how much value is given or created by the Sainsbury to its shareholders and investors it is important that analysis of it’s incomes, returns that it offers, its operations, liquidity position and the growth that it offers in the future is thoroughly made. Thus to get the full understanding cash flow analysis along with its income statement is made to have idea about its liquidity position. Both inflow and outflow of cash in the company is assured through three different activities that the company goes through operating, investing and financing. All three activities of Sainsbury are discussed as follow. Over the past three years Sainsbury’s Plc. have been reporting net income however as analysis of its profit margins are done it is seen that in the current period its profit margins re lagging behind to that of the industry average. It can be said that the company is