This report delves into the economic and financial performance of Tesco plc., a major UK supermarket chain, focusing on the period from 2017 to 2019. The analysis begins with an examination of macroeconomic and microeconomic factors and their influence on businesses, supported by relevant economic diagrams illustrating shifts and movements along curves. The report then applies this understanding to Tesco, calculating and interpreting key financial ratios, including Return on Capital Employed (ROCE), Net Profit Margin, Current Ratio, Average Receivable Days, and Average Payable Days. These ratios are used to assess Tesco's profitability, liquidity, and efficiency over the three-year period. The report highlights trends in these ratios, providing insights into Tesco's financial health and operational performance, along with potential causes and effects for the observed changes. Finally, the report provides recommendations to improve the company's accounting ratios and overall financial performance, concluding with a comprehensive assessment of Tesco's financial standing and future prospects.