Financial Appraisal of Tesco Plc

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EXECUTIVE SUMMARY The purpose of preparing this report is to provide a financial appraisal of Tesco plc. By that, the shareholders and the stakeholders can know the financial position of the company. By these investors, and customers of the company will use the information in rating the company’s performance over the last previous years. This will also help management in knowing their strengths and weaknesses and will adopt mechanisms to take advantage of the opportunities and minimize the threats that may exist. The key conclusions that will be shown in this report is that, Tesco plc is very strong financially and that it is growing steadily in the market position this has been aided by the huge fixed asset in property. Another reason is due to their dismissive approach towards law and regulations. This approach has resulted in an exceptionally good financial performance and efficiencies. Based on the available financial data of Tesco plc all the financial indicators are excellent with the exception of the liquidity. INTRODUCTION The most important thing to management is to find, evolve and assess involvement into possibilities that may be out there to develop and improve the company’s financial position. By doing this management can be able to assess various investment opportunities considering the risk that may be involved and assess the liquidity of the company. It is possible to determine the financial health of a company, this can be done by calculating the company’s financial ratios. Financial ratios can be used as a diagnostic tool to find resources of a financial trouble company. Financial ratios provide a fast and somehow straightforward approach to investigate the financial viability of a company. A ratio easily concerns one number seeming in the economic declarations to some other number seeming in the economic declaration ratios can split up in

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