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Tesco Main Barriers, Gap Analysis

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Tesco Main Barriers, Gap Analysis
TABLE OF CONTENTS

INTRODUCTION 2

FINANCIAL RATIOS 4

PROFITABILITY RATIOS 5

LIQUIDITY RATIOS 7

ACTIVITY RATIOS 9

INVESTMENT RATIOS 11

OVERTRADING 13

FINANCIAL STATEMENTS 14

BALANCE SHEET 15

FORMATS OF FINANCIAL STATEMENTS 18

CONCLUSION 22

BIBLIOGRAPHY 23 INTRODUCTION

In this report you will find useful information about GlaxoSmithKline plc (GSK). and AstraZeneca plc (AZN) and overview of these companies. My friend wants to buy shares and ask me for some advice. This report requires an analysis of two companies, in terms of comparing and contrasting. However, I was not able to obtain the latest annual report for AstraZeneca, as they have not yet been produced (complete). In order to make it fair comparison, I have analyzed 2004 figures for GSK and 2005 figures for both companies GSK and AZN. I have successfully obtained details for both companies from FAME (http://fame.bvdep.com) from the FTSE 100 list. After a range of information I going to find the investment potential for these two companies, I going to analyze financial statements using different ratios and I going to describe the differences between financial statements for different types of business. In addition to this, I going to describe the meaning of overtrading and how can you avoid it.
GLAXOSMITHKLINE PLC. OVERVIEW
It is a British based pharmaceutical, biological and healthcare company. World leading research-based pharmaceutical group engaged in anti-infective, central nervous system (CNS), respiratory & gastro-intestinal/metabolic areas, vaccines, oncology products, medicines, oral care products and nutritional healthcare drinks. The company has 107 manufacturing sites in 40 countries with over 101,802 employees. GlaxoSmithKline is a leader in the worldwide consumer healthcare market, with nearly 3.5 billion in sales, over ten £70 million brands and present in 130 markets. Ticker symbol GSK.
ASTRAZENECA PLC. OVERVIEW
It is a large



Bibliography: Weetman P ,1999, " Financial Accounting An Introduction" 2nd edition, Essex, Pearson Publishing Mclaney, E, J, (1997) ‘Business Finance –theory & Practice ', Pitman Keown, Martin, Petty, Scott "Financial management principle and application" 4th Edition Lewis, R & Pendrill, D, (2000) ‘Advanced Financial Accounting ', Prentice Hall Mclaney, E, J, (1997) ‘Business Finance –theory & Practice ', Pitman Needham, D & Dransfield, R (1994) ‘Business Studies ', Stanley Thornes

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