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Financial Analysis: Tesco - Assignment Example
Finance & Accounting
Pages 6 (1506 words)
Tesco is a British retailing and general merchandising company, established in 1919 by Jack Cohen. Operating in fourteen countries and employing about 520,000 people. It ranks third among largest multinational retailers and general merchandise stores. …
Analyzing the financial status of Tesco with the assistance of financial indicators depicts that the company has no wonder strived throughout the time of recession and earned enormous profit. But with the passage of time the company is losing it performance ability. Evaluating the performance of Tesco with its competitors and past year performance has been declined. The main area company has found to lose its ability is the operational activities. Working capital of the company is inefficient that has further lost the interest of the investors and seems to be a big obstacle in the times to come. Perhaps the other competitors like Sainsbury and Asda have found to be more efficient in carrying out its operational activities and share’s market price. Asda has found to be the most efficient amongst the other retailing companies and has a potential to capture the market in times to come. Though the turnover of the company has remained favourable but the ineffective buyers have caused profitability to fall. Company is also facing problems in paying to its creditors as it lacks in the availability of quick assets to cover requirements of its short-term obligations. The company had paid off its long term liabilities that cause significant amount of out flow of the cash due to which the company has fallen short of the quick assets. This may cause the company to fall in a worst scenario of Bankruptcy ...
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