Analysis and interpretation of financial ratios

Analysis and
interpretation of
financial ratios

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Background of Tesco PLC...........................................................................................................3
Calculation of Financial Ratio along with interpretation of Tesco PLC.....................................3
Recommendation.........................................................................................................................7
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
APENDIX........................................................................................................................................9

INTRODUCTION
Tesco Plc is a most reputed and well known company all over the world which
headquarter are situated in Welwyn Garden City, England. It is a British multinational company
that deals in groceries products and retailing (Wang and Feng., 2021). In this report, Tesco PLC
background and working environment are explained with the help of some financial term. For
understanding the business position and performance three year financial ratio are conduct in the
following report. Further, it analysed and interpreted 2018, 2019 and 2020 ratio results. At last,
recommendation and findings are also maintained in relation this report of Tesco PLC.
MAIN BODY
Background of Tesco PLC
Tesco PLC is a UK-based company which main activity is to manufacture and deliver the
grocery products. It is not only famous in United Kingdom but also famous in many countries
around the world. The main focus of the company is to provide best quality of goods to the
customers at cheaper and reasonable rate that helps them to earn more profit throughout the year.
Jack Cohen is the founder of Tesco Plc as a retailer shop in the year 1919 as a team of market
stalls in a part of London (Rate and Person-Years., 1990). In 1939, the business of retailing is
expanded quickly and rapidly and he opened 100 branch of Tesco Shops across the nation. In
1990, it globally increases their market by covering overall 11 different countries in the world
(Imhoff and et.al., 1991). Now, organization acquire top most position and goodwill in the
market world. Sainsbury’s, ASDA and Morrison's are big company in UK and main competitor
of this business organization because they produce some similar products and gives similar
services. To compete all of the them Tesco made continuous innovation in their practices and
goods as well as they provide several types of products and services excluding groceries and
retailing. These types of important factors make the company different from their competitors.
The main core objective of the industry is serving best to their communities, planet and customer
each day.
Calculation of Financial Ratio along with interpretation of Tesco PLC
LIQUIDITY RATIOS: 2020 2019 2018
-----------Current Ratio 0.67 0.61 0.71
Current Assets/Current Liabilities