Financial Analysis: The Performance Analysis Of Tesco

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This section of the paper is providing the performance analysis of Tesco Plc using the financial ratios. The selected ratios include liquidity, profitability, efficiency, and asset management over a period of two years. The selected organisation operates in the grocery sector of the United Kingdom categorised as one of the leading supermarkets.
Overview of Tesco
Tesco Plc. is headquartered in the United Kingdom being expanded in more than 12 countries of Europe and Asia. The organisation under consideration is one of the largest retailers dealing in food, grocery, and clothing. It has gained the second position in eight of the global markets along with which it gained the leadership position using different channels. The organisation has other areas of operations in banking and telecommunications but its main area of focus is retail of groceries and other than food products. By the end of its fiscal year 2013, the organisation had more than three thousand stores in the United Kingdom, more than fifteen hundred stores in Europe and more than two thousand stores in Asia. Tesco is operating under different brand names in different countries because of franchise agreements (Moore, 2001).
Performance Analysis of Tesco
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However, the organisation is operating its functions in different markets across the globe and the UK is its largest market having more than 50% of its total revenue. On the other hand, the operating profit of Tesco for the year 2015 is found to be -£310,000 that is more than 90% of loss as compared to the year 2014. This loss in operating profit of the organisation can be due to the increase in its operating expenses over the year 2015. Further, its net profit for the year 2015 is found to be -£5,741,000 which shows a drastic decline from the year 2014 (Palepu, et al.,

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