Financial Analysis of Tesco Plc Company

Running head: ACCOUNTS AND FINANCE
Tesco Plc Company
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1TESCO PLC COMPANY
Executive Summary
The aim of the assignment is to conduct a financial analysis on the Tesco Plc Company and the
financial analysis of the company was conducted with the help of the ratio analysis of the
company. The operations and the goals of the company were discussed and the financial
performance of the company were discussed in four year trend period and the relevant result was
analyzed for recommending the performance of the company and recommending the company
from an investment perspective.

2TESCO PLC COMPANY
Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
Ratio Analysis..............................................................................................................................3
Calculations.................................................................................................................................4
Gearing/Capital Structure Ratio..............................................................................................4
Profitability Ratio....................................................................................................................5
Liquidity Ratio.........................................................................................................................6
Conclusion/Recommendations........................................................................................................8
Reference.........................................................................................................................................9

3TESCO PLC COMPANY
Introduction
The Tesco Plc. Company operates as a British Multinational grocery Company and as a
general Merchandise Company. The company is located in Welwyn Garden City, England
United Kingdom. The company is the largest grocery and general merchandise company
measured in the terms of gross revenue produced by the company. The company is having its
presence in the major countries of the Europe and Asia and is also having a substantial amount of
market share in the United Kingdom. The company has a 28.4% of the market share in the
industry, which makes the company as the dominant and leading player in the market as
compared to other players in the Industry. The company has its presence in 12 countries on an
overall basis including the United Kingdom where its carries on its daily operating activities. The
Tesco Company has diversified areas of business primarily in the areas of retailing of books,
clothing, electronics, furniture, toys, petrol and other grocery and general merchandise items.
The future prospect of the company is primarily dependent on the financial performance of the
company and the strategies deployed by the company for the overall development of the
company (Wood, Wrigley and Coe 2016). The company has a wide range of portfolio of
products in order to diversify the revenue base of the company and give varied amount of
services and products
Discussion
Ratio Analysis
The application of ratio analysis is done in order to analyze the financial performance of
the company and the review of the financial informations presented by the company. The
application of ratio analysis helps in financial evaluation of the company and analysis of the