Analyzing Performance, Liquidity and Financial Structure of Tesco PLC from 2017-2020

Financial Accounting

INTRODUCTION
Financial accounting is the activity of keeping track of all money that enters and exits an
organisation. Every money transfers must be recorded, classified, summarized and analyzed.
Financial accounting is mostly focused on giving an accurate and fair picture of a company's
operations to other stakeholders. To guarantee that this is done appropriately, a great amount of
attention will be devoted to accounting ideas as well as any legislative, accountancy, and stock
market regulations (Muqorobin, 2021). Financial accounting may be broken down into a variety
of tasks, including auditing, taxing, accountancy, and liquidation. According to some experts, the
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TASK
Analyse and evaluate the performance, liquidity and financial structure of the three years 2020 –
2017
It may be noticed from the profitability report or the study that there is a variation from
2017 to 2020. Return on capital employed increased from 2017 to 2018 and 2019, which is a
positive sign, but it has fallen in the current year 2020, demanding significant changes. When
something pertains to sales income, the necessary ratio is constantly increasing. The ideal gross
profit ratio is believed to be 10%, which is significantly higher than TESCO PLC's current
performance. Value of shares shareholders is essential since it allows a company to obtain more
investors and attain higher return targets. It was 2.25 percentages in 2017, and it will develop to
9.91 percent in 2020 and with a declining trend in 2018 and 2019. According on TESCO's
achievements, it may be decided that TESCO PLC should commit to making more major
improvements.
The operational ratio is a metric for assessing employee efficiency and determining if it is
financially attractive. The percentage of interest on net and fixed assets throughout the course of
the specified years in an evolving setting. Tesco's performance in replacing inventory by selling
may be measured using the inventory turnover ratio. The firm's liquidity position has been solid,
with stock volume increasing from 24.30 to 26.62 instances in 2017. The accounts receivable of