Ratio Calculations:

Following the annual financial report of 2016, 2017, 2018 and 2019 of Sainsburys the
ratio calculations
Profitability Ratios:
Name of Ratios 2016 2017 2018 2019
Gross Profit 6.603% 6.64% 7.08% 7.43%
Margin
Operating Margin 3.21% 2.61% 1.95% 1.16%
Return on 7.12% 5.996% 4.53% 2.62%
Capital
Employed
Net Profit Margin 2.14% 1.53% 1.16% 0.81%

Liquidity ratio:
Name of Ratios 2016 2017 2018 2019
Current Ratio 0.661 times 0.74 times 0.76 times 0.664 times
Acid test Ratio 0.52 times 0.53 times 0.59 times 0.50 times

Investment ratios:
Name of Ratios 2016 2017 2018 2019
Dividend Cover 3 times 2.43 times 2.15 times 1.40 times
Earnings per 21.72% 16.26 % 11.98% 8.14 %
Share
Dividend pay-out 33.33% 41.11% 46.60 % 71.23%
ratio

Efficiency Ratio:
Name of Ratios 2016 2017 2018 2019
Average inventories 287.29 days 272.33 days 279.46 days 290.17 days
turnover period

Average settlement 6.72 days 7.53 days 8.45 days 8.84 days
period for
receivables