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.
Net Profit Margin
Gross Profit margin
Interest Cover Ratio/
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...