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Tesco Finance statements and analysis

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Tesco Finance statements and analysis
Financial Statements For Tesco Plc

Analysis of Tesco Plc Annual Financial Statements in Comparison with
J Sainsbury Plc

By: Douglas Lonnroth, Vincent-Louis End, Niccoló Trivelli & Andrea Arnaud
Module: 2013.4.ACC4A1.R_T1 – Financial Reporting
Seminar Teacher: Peter Thomas
Regents University of London
29th of November 2013

Word Count: 1415

Table of Content

Page
1. Introduction 3
2. Profitability & Efficiency Year on Year 3-4
2.1 Liquidity 4
2.2 ACID Test Ratio 4
2.3 Gearing 4
2.4 Interest Cover 4
2.5 Investor’s Ratio 4
3. Profitability & Efficiency Comparison 5
4. Competition 5-6
5. Conclusion 6
6. Recommendations 6
7. References 7
8. Appendix 8

Tesco Finance Statements & Analysis Interpretation

Introduction
This assignment is conducted through secondary research, intended for the purpose of analysing Tesco Plc financial statements. Comparing the organisation with one of their main competitors within the business sector, namely J Sainsbury Plc. This analysis bases on the company’s latest annual reports.

I will do so by evaluating the following statements

The performances by looking at the results for year ended 23rd of February 2013 and compare it with previous years financial statements.

By conducting a comparison between the latest results shown by Tesco’s annual report as well as one of their main competitors, specifically J Sainsbury Plc.

Tesco Plc Year on Year Result

Profitability & Efficiency
For more details about the ratio calculations for year on year, the information will be provided in Appendix 1.

The prime ratio of return on Capital Employed (ROCE) shows a return of 12.7% for year ended 23rd of February 2013, which is a decreased return compared to 14.7% in their previous year. The decreased return is a reflection from their trading profit performance.

This declined Return on Capital Employed (ROCE) is mainly due to the following data:
The regression of Tesco Plc’s
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