Tesco profitability ratios (gross profit margin, net profit margin, return on capital employed and Earnings before interest and tax of Tesco and Sainsbury

Tesco profitability ratios (gross profit margin, net profit margin, return on capital employed and Earnings before interest and tax of Tesco and Sainsbury 150 150 Affordable Capstone Projects Written from Scratch

Why Tesco lost market shares; Current state of Tesco comparing it to one of its competitors (Sainsbury). The main purpose of the report is to show how Tesco has lost market shares in the last couple of years and give details of why Tesco suffered this loss, giving recommendations to Tesco on how they can get their market share back. You should apply skills of critical analysis to real-world situations within a defined range of contexts, express ideas effectively and communicate information appropriately and accurately using a range of sources i.e newspapers, websites, articles, journals, books, interviews and more if applicable. Find, evaluate, synthesise, and use information from a variety of sources and articulate an awareness of the social and community contexts within their disciplinary field.
The report should be a critical analysis into the current state of Tesco comparing it to one of its competitors (Sainsbury). Compare the Financial ratios of both companies to show Tesco’s current state. The ratios for analysis will be Profitability ratios including gross profit margin, net profit margin, return on capital employed and Earnings before interest and tax. Liquidity ratios including current ratio and acid test ratio. Capital structure ratios including gearing and interest cover. Productivity/ Activity ratios including Sales revenue to capital employed, Inventories turnover period, settlement period for trade receivables and payables. Finally, Investors’ ratios including Earnings per share ratio, price/earnings ratio, dividend yield and dividend cover. Following the ratio analysis there should be an in-depth analysis of Tesco’s current state through news stories and Articles attached and researched and other resources showing any problems Tesco faced in the last 5 years. Giving reasons for Tesco’s performance over the past 5 years and finally giving recommendations for possible cases of action for Tesco to implement given the potential effects of the recommendations.
The folder ‘Business Finance Theory and Practice’ is a startup of the assignments. Just need to add to it and complete it I have added some ratios which are accurat, it also shows how the assignment should be structured.
THE ARTICLES ATTACHED CAN BE USED!
Using the Internet and other form of resources access the company accounts for Tesco and one of the other food retailers obtaining the company accounts for the last five years. Prepare a chart showing the relevant financial ratios for both companies. When doing this you will find that many of the financial ratios are already calculated for you on the company websites and on the ‘Fame’ website. (If you use the ratio figures supplied by the company, or other institutions, you must clearly reference these and include the relevant printouts as appendices.) (15 Marks)
Using the data collected above, and any calculations, establish the current financial status of Tesco, using their competitor as a guide for the industry. (20 Marks)
Draw conclusions from all the calculations regarding Tesco’s current position using the competitor as the sector guide, making reference to articles and background research. The conclusion should show that you have applied your research in order to critically analyse and evaluate the company’s current position. You will need to research this thoroughly using the Internet to gain background information and current and past articles. It is important that you look for trends within the figures and carry out in-depth research to ensure that you thoroughly explain why these trends have occurred either within the company or within the sector. (Articles should be clearly referenced using the Harvard referencing system.) (35 Marks)
Make recommendations regarding the possible courses of action for Tesco drawing on any relevant background research and evaluating their possible effect on the company’s status. (You will need to research this thoroughly making sure that any quotes are clearly referenced using the Harvard referencing system.) (30 Marks)


 

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