Role of Financial Analysis in the Organization

FINANCIAL ACCOUNTING

Table of Contents
INTRODUCTION...........................................................................................................................1
Brief of the company...................................................................................................................1
Which section dominate the report..............................................................................................2
Main directors of business...........................................................................................................2
Auditor report summary..............................................................................................................3
Sales increased or decreased........................................................................................................4
Cash flow statement.....................................................................................................................4
Retained profit for the year..........................................................................................................5
Financial ratios.............................................................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Financial analysis plays most important in the organization as through this it can be easily
known whether the company is operating efficiently in the market or not. Apart from this, it is a
well-known fact that market where the company operates is full of challenges and it directly acts
as the hurdle in accomplishing the desired goals. Analyzing financial statements of the business
allows in knowing the financial performance of the business and in turn corrective actions can be
easily taken by the company for overall improvement. The present report is based on analyzing
financial statements of Tesco operating in the market of UK. Various tasks have been covered in
the study which involves history, the background of the company, directors, auditors, retained
profits of the company and overall financial analysis.
Brief of the company
In the present report, Tesco plc has been chosen as one of the organization that is a
British multinational grocery and merchandise retailers headquartered in Welwyn Garden City,
Hertfordshire, England, United Kingdom. The organization is considered to be the third largest
retailer in the global market regarding profits and ninth largest retailer in the world regarding
revenue. The organization was founded in the year 1919 by Jack Cohen, and at present, it has
stores in 12 countries across Europe and Asia. Jack Cohen was the individual who founded the
name of Tesco and took imitative to open hundred of stores in the market (Plc 2017). Since the
period 1992, the entire company has grown at the faster pace where the market share of the
enterprise has increased from 10.4% to 15.2%. The overall rise in the customer base of Tesco has
allowed business to gain the competitive edge over its rivalry.
On a yearly basis, Tesco is earning high amount of profits and sales revenue along with
this large number of customers are brand loyal towards the company in the market. Time to time
the founder of the company carried out innovative practices, and this became one of the main
reasons behind the success of the company in the market. The key products of the organization
are segregated into supermarket, hypermarket, and superstore. Tesco offers every type of retail
products in the market such as grocery, electrical, furniture, toys, petrol and software, etc. Apart
from this, the service range of the organization involves telecom, internet service, financial
service, etc (Plc 2017). All these products and services are offered to the target market as per
their real expectations in the market. At present stores of Tesco are present worldwide, and its
supermarket chain is popular in every area where every customer prefer to purchase products of
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