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)	1991	1992	2000	2001	2002
   Group turnover	15,496	16,378	17,414	18,441	18,206
   Operating profit	790	794	651	628	677
   Source of operating profit by segment
   Sainsbury's Supermarkets	751	711	518	470	515
   Sainsbury's Bank	-15	-5	3	13	22
   Shaw's Supermarkets	37	52	79	115	137
   Other operating activities	10	12	16	25	15
   Profit sharing	-39	-40	-9	-8	-10
   Discontinued operations	46	64	44	13	-2
   Interest payable	-78	-50	-72	-76	-49
   Profit/(Loss) from joint ventures	16	12	1	-3	-1
   Group profit before taxation	728	756	580	549	627

   
   
   
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 analysis	1998	1999	2000	2001	2002
   Turnover	16,452	17,158	18,796	20,988	23,653
   Profit for the financial year	532	606	674	722	830
   Total Costs (Turnover - Profit for the year)	15,920	16,552	18,122	20,266	22,823

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