Financial Performance Analysis

Financial
Performance Analysis

Table of Contents
Introduction-................................................................................................................................................3
Financial Ratios-..........................................................................................................................................3
Performance Analysis-................................................................................................................................3
Conclusion-.................................................................................................................................................3
References-..................................................................................................................................................3

Introduction-
In this report, financial performance of the company is analyzed. Measuring financial
performance of the company is a tough task. Various things need to be taken care of. Financial
performance of the company can be measured by using financial ratios. Various types of
financial ratios are discussed in the report. With the help of ratios, Company’s performance can
be compared with its past performance or other companies. Performance measurement gives idea
about where company needs changes in order to manage growth.
Company taken here is Tesco. It is British multinational groceries. It is headquartered in
England. It is ninth largest company by revenues. Company was founded in 1919 by jack cohen.
Revenue of the company is 64.760 billion.
Financial Ratios-
Tesco ratio
calculation
2019(In Billions) 2020(In Billions)
Liquidity Ratio
Current Assets 25.83 25.17
Current Liabilities 42.14 34.26
Current Ratio= Current
Assets/Current Liabilities 0.61 0.73
Quick Assets 20.49 20.52
Current Liabilities 42.14 34.16
Quick Ratio= Quick
Assets/current liabilities 0.48 0.57
Profitability Ratio
Net Profit 1322 971
Net sales 63911 64760
Net profit margin= Net
profit/net sales*100 2.06 1.49
Gross Profit 93.52 92.93
Net sales 100 100