Finance assignment
Content
1- Introduction
2- Financial Market Analysis and its effect on the retail market.
3- Analysing TESCO’s financial position and performance2008-2010 together with the effect of economic down turn during this period.
Profitability Analysis
Net Profit Margin
Gross Profit margin
Sales Trend
ROCE
ROE
Liquidity Analysis
Current ration
Acid ratio
Risk Analysis
gearing Ratio
Interest Cover Ratio/
Market Analysis
EPS
P/E
4- Conclusion
5- References
1- Introduction
In this report I analyse TESCO's financial position and performance in the context of recent financial market crisis. In my analysis I will have a short review on the financial market development in the last 2 years and then I will consider TESCO's position and performance before and after this development.
In reviewing TESCO's financial position and performance I will be using various financial ratios to evaluate its performance, market risk, liquidity as well as future prospect of the company.
I have also tried to work out the expected changes in Tesco’s financial position and performance had the economic down turn not happened. In order to do this I assumed that the company’s trend of financial performance expected to be continued on a similar direction although researches shows that the past trends and performance necessarily do not show the future trends and changes.
In my prediction I used Tesco’s average trend for the past 5 years and assumed that had the economic down turn did not occur Tesco’s financial statements would have increase/decrease by this average rate. All the calculations are provided in a spreadsheets enclosed to this assignment.
2-Financial Market Analysis and its effect on the retail market.
As with many other industries, grocery and food industry’s growth will be affected in a volatile market. However the effect of a economic recession in this industry could be limited compare to other industries as...