This report undertakes a comprehensive financial analysis of Tesco Plc, employing various financial ratios to evaluate its performance and financial standing. The analysis encompasses liquidity ratios (current and quick ratios), activity ratios (total asset turnover and inventory turnover), leverage ratios (debt ratio and debt-to-equity ratio), and profitability ratios (net profit margin and return on equity). The report identifies areas of concern, such as Tesco's liquidity and leverage positions, and suggests strategies for improvement, including optimizing credit terms and managing debt. Furthermore, the analysis extends to a comparison with a key competitor, Sainsbury Plc, considering both financial and non-financial data to provide a holistic view of Tesco's market position and financial health. The report also acknowledges the limitations of ratio analysis, such as limited comparability and the potential for inaccurate data. The report aims to provide a detailed understanding of Tesco's financial strengths and weaknesses.
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