Using the financial statements of Glaxo Smithkline (available online) undertake a CORE (context, overview, ratio, evaluation). Analysis as per the example shown below on Sainsbury's

CORE analysis

Context

External profile

J Sainsbury is one of the oldest and prominent companies in the UK. Initially started as a single grocery which has gradually expanded to a multi-brand and a multi-channel business from the introduction of self-servicing shopping into its stores. The company has a long history, going back in 1869 when John James Sainsbury and his wife Mary Ann launched their first store in London's Drury Lane (Sainsburyarchive.org.uk, 2020). Since then, its focus has been an expansion to date making it one of the largest general merchandise and clothing retailers. It is the second-largest food retailer after Tesco. The company is a bit more diversified as it operates in three segments: Financial service segment which deals with operations of Sainsbury's bank, Retailer segment engaging in operations of the supermarket, and the Property investment segment that includes its joint ventures with British Land Company Plc (Financial times, 2020). Through self-service retailing, Sainsbury has managed to be a key market leader in the grocery market. As shown in Table 1, Sainsbury has established the second highest market share of about 15% as of March 2020 after Tesco with 26.90% in the same period, but slightly nearer to the third-placed Asda at 14.40%.

Market Share of UK Retailers as of March 2020 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% 2020 2019 2018 2017Sainsbury's Sainsbury's Sainsbury's live well for less Bank Energy Groceries Bank Energy Argos To habitat nectar Argos Tu Habitat NectarItems 201? 2013 2019 2020 Number of suermarkets 608 608 608 Total supermarket area '000' sq. ft. 21286 21210 2116? Average '000' sq. ft. per supermarket 35.03 I 34.88 I 34.81 No of convenience stores 806 815 820 807 Total convenience are '080' sq. ft. ' 1885 1918 ' 1934 ' 1898 Average '000' sq. ft. per convenience store . 2.34 2.35 . 2.36 . 2.35 Total stores 1423 1428 1415 Total stores area '000' sq. ft. 23208 23144 23065 Average '880' sq. ft. per store 18.31 ' 18.21 ' 16.30 J sainsbury income statement 2020 2019 2018 2017 Revenue E 28,993.00 E 29,007.00 E 28,456.00 E 26,224.00 Cost of sales E 26,977.00 E 26,719.00 E 26,574.00 E 24,590.00 Gross profit E 2,016.00 E 2,288.00 E 1,882.00 E 1,634.00 Administrative expenses E 1,459.00 E 1,725.00 E 1,415.00 E 1,207.00 Other income E 93.00 E 38.00 E 51.00 E 215.00 Operating income E 650.00 E 601.00 E 518.00 E 642.00 Finance income E 32.00 E 24.00 E 19.00 E 34.00 Finance costs E 398.00 E 427.00 E 140.00 E 136.00 Share of post tax loss/profit fri E 29.00 E 4.00 E 12.00 E 37.00 Profit before tax E 255.00 E 202.00 E 409.00 E 503.00 Income tax expense 103.00 16.00 E 100.00 E 126.00 Profit for the year E 152.00 E 186.00 E 309.00 E 377.00J sainsbury balance sheet 2020 2019 2018 2017 Non current assets property, plant and equipment & 8,911.00 E 9,193.00 E 9,898.00 $ 10,006.00 Right of use assets E 4,826.00 E 4,993.00 E E Intagible assets E 1,012.00 E 1,043.00 E 1,072.00 E 803.00 Investment in joint ventures an E 9.00 E 205.00 E 232.00 E 237.00 Financial assets at fair value] E 972.00 E 645.00 E 540.00 E 435.00 Trade and other receivables E 43.00 E 57.00 E 44.00 E 69.00 Amounts due from financial se $ 3,453.00 E 3,349.00 E 2,332.00 E 1,916.00 Derivative financial instrument E 6.00 E 9.00 E 17.00 E 10.00 Net retirement benefit surplus E 1,119.00 959.00 E E 20,351.00 E 20,453.00 E 14,135.00 E 13,476.00 Current assets Inventories E 1,732.00 E 1,929.00 E 1,810.00 E 1,775.00 Trade and other receivables E 811.00 E 630.00 E 744.00 E 574.00 Amounts due from financial se $ 3,951.00 : 3,638.00 E 3,360.00 : 2,686.00 Financial assets at fair value E 82.00 E 211.00 E 203.00 E 100.00 Derivative financial instrument E 12.00 21.00 E 10.00 94.00 Cash and cash equivalents E 994.00 E 1,121.00 E 1,730.00 E 1,083.00 E 7,582.00 E 7,550.00 E 7,866.00 E 6,322.00 Assets held for sale E 4.00 8.00 E 9.00 10.00 E 7,586.00 E 7,558.00 E 7,866.00 f 6,322.00 Total assets $ 27,937.00 E 28,011.00 $ 22,001.00 E 19,798.00 Current liabilities Trade and other payables E 4,275.00 E 4,373.00 E 4,322.00 E 3,741.00 Amounts due to financial servi $ 6,890.00 E 5,797.00 E 4,841.00 : 4,284.00 Borrowings E 48.00 E 816.00 E 638.00 E 172.00 Lease liabilities E 510.00 533.00 E E Derivative financial liabilities E 53.00 E 17.00 E 53.00 E 22.00 Taxes payable E 163.00 E 204.00 E 247.00 E 219.00 Provisions E 108.00 E 109.00 E 201.00 E 148.00 E 12,047.00 E 11,849.00 E 10,302.00 E 8,586.00Net current liabilities E 4,461.00 E 4,291.00 & 2,436.00 & 2,264.00 Non current liabilities Other payables E 11.00 87.00 313.00 E 304.00 Amounts due to financial servi $ 1,204.00 E 1,804.00 E 1,683.00 E 637.00 Borrowings E 1,248.00 E 844.00 E 1,602.00 $ 2,039.00 Lease liabilities E 5,264.00 E 5,298.00 E E Derivative financial liability E 36.00 E 17.00 E 26.00 E 38.00 Deferred income tax liability E 265.00 E 235.00 E 241.00 E 162.00 Provisions E 89.00 E 95.00 E 166.00 E 186.00 Net retirement benefit obligati 257.00 E 974.00 E 8,117.00 E 8,390.00 E 4,288.00 E 4,340.00 Total liabilities E 20,164.00 $ 20,229.00 E 14,590.00 E 12,926.00 Net assets E 7,773.00 E 7,782.00 E 7,411.00 E 6,872.00 Equity Called up share capital E 634.00 E 630.00 E 627.00 E 625.00 Share premium E 1,159.00 E 1,147.00 E 1,130.00 E 1,120.00 Merger reserve 568.00 568.00 568.00 568.00 Capital redemption reserve E 680.00 E 580.00 E 680.00 680.00 Other reserves E 168.00 E 172.00 E 121.00 193.00 Retained earnings E 4,068.00 E 4,089.00 E 3,789.00 E 3,190.00 Total equity before perpetual $ $ 7,277.00 E 7,286.00 E 6,915.00 E 6,376.00 Perpetual capital securities E 248.00 E 248.00 E 248.00 E 248.00 Perpetual convertible bonds E 248.00 E 248.00 E 248.00 E 248.00 Total equity E 7,773.00 E 7,782.00 E 7,411.00 E 6,872.00Ratio analysis Profitability ratios 30th March 2020 30th March 2019 30th March 2018 30th March 2017 Gross profit margin 6.95% 7.89% 6.61% 6.23% operating profit margin 2.24% 2.07% 1.82% 2.45% Net profit margin 0.52% 0.64% 1.09% 1.44% liquidity ratios Current ratio 1.70 1.76 3.23 2.79 Quick ratio 1.31 1.31 2.49 2.01 Cash ratio 0.22 0.26 0.71 0.48 Efficiency ratios Total asset turnover 1.04 1.04 1.29 1.32 Accounts payables turnove 6.31 6.11 6.15 6.57 Gearing ratios Debt to equity ratio 2.59 2.60 1.97 1.88 Debt to asset ratio 0.72 0.72 0.66 0.65Efficiency ratios 18.00 16.00 14.00 12.00 10.00 8.00 6.00 4.00 2.00 0.00 30th March 2020 30th March 2019 30th March 2018 30th March 2017 Total asset turnover Inventory turnover Accounts payables turnoverLiquidity ratios 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 30th March 2020 30th March 2019 30th March 2018 30th March 2017 - Current ratio Quick ratio Cash ratioGearing ratios 5.00 4.50 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 0.00 30th March 2020 30th March 2019 30th March 2018 30th March 2017