Financial Statements of Tesco plc (2017-2020)

Financial statements of Tesco plc for the last three
years 2017 to 2020

Contents
INTRODUCTION...........................................................................................................................3
INTERPRETATION OF RATIOS..................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Tesco Plc is world 's largest retailer. It is Number 1 in United Kingdom as well as as of
Aug 2020, it has market share of around 26.6 per cent in the United Kingdom in the
retail market. It's been in existence since year-1919. This expertise is definitely one
of corporation's greatest assets. It works in a variety of nations. It works in nations like United
Kingdom, India, China, the Hungary, Ireland and many others. Since around Aug. 2020, there
are approximately 6,800 Specialized cells called stores all over the globe. It provide services
to millions of consumers per week through its supermarkets and online shops (Tesco Plc: About
us. 2020). In year-2019, company's sales were worth £56.5 billion. Tesco Plc was in early days
of loyalty card business. In year-1994, Clubcard was launched. It's been used after then
as valuable advertising and sales tool. Many observers say that Clubcard had enabled the
organisation understand consumer behaviour and is increasing tremendously, especially in the
United Kingdom. Clubcard has about 17 million members in UK.
MAIN BODY
Interpretation of Ratios
Data selected for ratio analysis is as of 25/02/2017 to 24/02/2018 (2017-18), 24/02/2018 to
23/02/2019 (2018-19) and 23/02/2019 to 29/02/2020 (2019-2020) period. In this regard
following is ratio analysis of Tesco Plc, as follows:
 Return on Shareholders’ Funds: Company’s ratio was 12.39 in during 2017-18 which has
been reached to 11.27% during 2018-19 and declined to 9.91% during 2019-2020. There
is decline in ratio in 2019-20 due to outbreak of coronavirus. Overall declining trend in
this ratio indicates that company’s efficiency to generate return on the company’s
shareholder funds has been dropped (Adewuyi, 2016).
 Return on Capital Employed: ROCE is level of the net profits of the organization when it
is provided to the owners as worth. This measure helps shareholders to take an alternative
estimate of the performance of the organization and measures the productivity with
which company earns profit applying funds spent by shareholders. There is upward trend
in ROCE up to 23/02/2019 after that ratio has been dropped to 3.83. The decline in period
2019-20 is indicates that corporation’s ability to generate yield on aggregate capital
employed in business has been declined.