write an article on financial analysis of tesco plc Paper must be at least 2000 words.
Hi, I am looking for someone to write an article on financial analysis of tesco plc Paper must be at least 2000 words. Please, no plagiarized work! “Tesco operates 923 stores and employs 240,000 people, giving us access to a population of 260 million across our nine markets. Over the past five years, we have expanded from our traditional UK supermarket base into new countries, products, and services, including a major non-food business, personal finance, and internet shopping. The increasing scale and internationalization of our sales and purchasing operations makes a significant contribution to our efficiency and profitability, as we progress towards our long-term goal of becoming a truly international retailer” (Global Sources).
The company’s performance and Financial Analysis is done using ratio analysis. Ratio analysis is a procedure where an item of financial data is compared with another item of financial data to interpret the relationship between the two so that an understanding can be developed about the information and hence conclusions could be drawn. (Morley, 1984)
“Ratio analysis is one of the most common types of financial analysis and is thought to be the most important method of financial analysis of an enterprise. It is a more advanced approach to the analysis of the structure and dynamics of the balance sheet and profit and loss account than the initial analysis. It was introduced by banks which use it to examine the solvency of businesses which they credit. The ratio analysis enables the examination of various aspects of business operations.” (Business-explained, 2008)
Liquidity ratios give insight into a firm’s ability to meet its short-term financial obligations. These kinds of ratios are of great importance to those people who are willing to extend short term credit facilities to an organization. (Financial Ratios, 2007)
Liquidity Ratios evaluate a company’s ability to pay off their debts when they fall due. It gives a snapshot of the running position i.e. the working capital position of a company. There are two basic ratios.