Imagine that you have recently been appointed as a junior investment analyst at Bord, Dulle and Witless a firm of London stockbrokers. You have been asked to produce an analysis of Tesco plc and its market segment. Your report should contain the following elements:? An analysis of the financial status of Tesco plc with comments producing the main financial ratios. (Use comparatives to produce comments, Extract from the financial statements attached)
Tesco plc Financial Statements as at 22 February 2014 (abbreviated)
http://www.tescoplc.com/files/pdf/reports/ar14/download_annual_report.pdf
|
Income Statement£m |
2014 |
2013 |
|
Revenue |
63,557 |
63,406 |
|
Cost of Sales |
(59,547) |
(59,252) |
|
Gross profit |
4,010 |
4,154 |
|
Admin expenses |
(1,657) |
(1,482) |
|
Pofit/(Loss) from Properties |
278 |
(290) |
|
Operating Profit |
2,631 |
2,382 |
|
Finance Costs (Interest) |
(372) |
(325) |
|
Profit before tax |
2,259 |
2,057 |
|
Balance Sheet£m |
2014 |
2013 |
|
|
Non current Assets |
34,592 |
37,033 |
|
|
Investments |
2,487 |
631 |
|
|
Current assets: |
|||
|
Inventories (stock) |
3,576 |
3,744 |
|
|
Trade receivables (Debtors) |
5,987 |
5,689 |
|
|
Bank / cash |
3,522 |
3,032 |
|
|
Current Liabilities: |
|||
|
Trade Payables (Creditors) |
(10,595) |
(11,094) |
|
|
Short term loans |
(10,804) |
(7,891) |
|
|
Long term loans |
(14,043) |
(14,483) |
|
|
NET ASSETS |
14,722 |
16,661 |
|
|
Share capital |
5,485 |
5,423 |
|
|
Retained earnings |
9,237 |
11,238 |
|
|
14,722 |
16,661 |
||