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Advanced Profitability - Additional Question 6

J Sainsbury plc's published accounts contain the following historical information. Use both ratios and graphs to highlight Sainsbury's performance over these five years.

  1. You should prepare a graph or graphs that show:
    1. Turnover trends
    2. Operating profit trends
    3. Group profit before tax trends
  2. You should also identify:
    1. Operating profit margin in total
    2. Group profit before tax margin
    3. Interest payable as a percentage of turnover
    4. Operating profit trend segment by segment
  3. Advanced - Estimate Sainsbury's total costs from the group turnover and profit before taxation data and then prepare a break-even chart that will help you to estimate Sainsbury's break even point.

    Five year review (£m)19911992200020012002
    Group turnover15,49616,37817,41418,44118,206
    Operating profit790794651628677
    Source of operating profit by segment     
    Sainsbury's Supermarkets751711518470515
    Sainsbury's Bank-15-531322
    Shaw's Supermarkets375279115137
    Other operating activities1012162515
    Profit sharing-39-40-9-8-10
    Discontinued operations46644413-2
    Interest payable-78-50-72-76-49
    Profit/(Loss) from joint ventures16121-3-1
    Group profit before taxation728756580549627


  4. Advanced - Estimate Tesco's total costs from the data that follows and then prepare a break-even chart that will help you to estimate its break-even point. Contrast this chart with the break even chart you prepared for Sainsbury plc

    Tesco Data for break even analysis19981999200020012002
    Turnover16,45217,15818,79620,98823,653
    Profit for the financial year532606674722830
    Total Costs (Turnover - Profit for the year)15,92016,55218,12220,26622,823

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