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Sunday, June 16, 2019

Compare Tesco and Sainsbury Coursework Example | Topics and Well Written Essays - 500 words

Compare Tesco and Sainsbury - Coursework ExampleThe firm paid an extra 0.04 in coincidence with the previous year. Sainsbury had a dividend per share in 2013 of 16.7, a figure that is 0.6 higher than in 2012. Over exclusively Sainsbury paid higher dividends than Tesco. Tescos dividend cover was 0.10 and 2.38 in 2013 and 2012 respectively. Dividend reporting indicates the capacity of an organization to pay dividends out of profit attributable to shareholders (Accounting-simplified, 2013). Sainsbury had dividend coverage of 1.95 and 1.99 in 2013 and 2012. The dividend coverage of Sainsbury was better than Tesco in 2013, but lower in 2012. The dividend number ratio shows the return on terms of cash dividends being provided by the stock. Tesco dividend yield ratio was superior to Sainsbury both in 2013 and 2012.The price-earnings ratio is an important forefinger of comparative value in which an investor is better off buying a stock with low price-earnings ratio than high price-earnin gs ratio (Ft). Both the price-earnings ratio results of Tesco in 2013 and 2012 were lowered than Sainsbury, thus Tesco performed better than Sainsbury in this metric. The book value per share measures the amount that would be distributed to shareholders if all assets were sold at their balance sheet carrying amounts and if all creditors were paid off (Garrison, et al. 2003). Since a high value is the preferable output Tesco performed better than Sainsbury in this ratio. The market to book ratio of Sainsbury is much higher than Tesco on both years because its stock is valued higher in the

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