Financial appriasial of tesco
5181 mots
21 pages
[pic]Table of Content
Introduction 3
1. Analytical Objectives 4 1.1 Statement of account for Shareholders 4 1.2 Analytical Questions 4
2. Value Driver Analysis 4
3. Strategic Pre-Evaluation 4 3.1 UK Economic growth: 4
4. Strategic analysis: Issues and Concerns 5 4.1 Macro-environment (PEST) 5 4.2 SWOT Analysis 5
5. Tesco Financial Analysis 6 5.1 Difference Analysis 6 5.1.1 Summary of Difference Analysis 6 5.2 Tesco Investors Ratios 6 5.2.1 Earnings Per Share EPS and Dividends 6 5.2.2 Forecast of Tesco Future earnings 8 5.3 Margin Analysis 8 5.3.1 Profit Margin Ratios 8 5.3.2 Impact of low Margins (Worst case) in Future 9 5.4 Financial Ratio: PERL Accounting Ratios 9 5.4.1 Measuring Performance: 9 5.4.2 Measuring Efficiency: 11 5.4.3 Risk Measurement 13 5.4.4 Tesco Liquidity 14
Discussion and Conclusions 16
Appendices 17 Appendix 1 17 Appendix 1.1: UK Inflation, GDP and nominal Rate of Growth 17 Appendix 1.2: Tesco Difference Analysis 2006/7 18 Appendix 2 Other Measurements Ratios 19 Appendix 2.1 ROCE and ROFCE Calculation 19 Appendix 2.2: Cost Efficiency CER and FAT 20 Efficiency Ratio 21 Appendix 2.3 Rate of Return 21
References 22
Figures and Tables
Figure 1: Tesco Dividend and Yield Graph 7
Figure 2: Tesco Margin Analysis Graph 9
Table 1: Tesco Share and Dividend Yiel 6
Table 2: Tesco Retention Ratio 7
Table 3: Tesco Forecast earning for 2008 8
Table 4: Tesco Profit Margin Analysis 8
Table 5: Tesco Beaver Failure Ratio 15
Table 6: Tesco Acid Test Ratio 15
Introduction
Financial accounting provides a collection of accounting information[i] about a firm financial performance over a period of time, for the purpose of external users including stakeholders and investors. This financial performance can only be measured if the firm macroenvironment (PEST: political, economic, social and technological) is studied and the firm