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Tesco Financial Analysis

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Tesco Financial Analysis
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Executive Summary:

This report aims to analyze the financial position of TESCO PLC from the point of view an investor who seeks to evaluate the prospects of buying shares of a company in food and retailing sector. The potential investor has selected TESCO PLC and has asked the author to analyze the investment prospects and present a report on the same.

The analysis shall be based on the most recent annual financial statements available for TESCO and of other companies in the same industry. The analysis will not take into account the half yearly and quarterly financial data and updates issued.

The scope of analysis shall be limited to the financial strengths and weakness of the company through its financial statements of the last year and previous years and by a comparison within the retailing industry. The scope does not include the strategic strengths and SWOT analysis of the company however risks or opportunity factors related with company’s financial weakness or strengths shall be reviewed in this report.

The structure of the report is as follows:

After a brief introduction of the company, the report outlines the methodology employed for financial analysis and steps involved. Following the methodology, the main sections of the report then discuss various aspects of the financial analysis including accounting principles of the company, quality of financial statements and financial performance study through ratio analysis. Based on the given analysis, the report ends with a conclusion and a recommendation for the potential investor.

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