You are a financial analyst and have been asked by a client to provide advice based on relevant ratio analysis on whether to buy equity shares in Tesco Plc, a supermarket based in the UK but with subsidiaries and investments around the globe.
Your advice is to be based on your analysis of their 2019 annual report. A copy of the reports can be found by following this link: Tesco Plc Annual Report and Financial Statement 2019
You do not need to calculate key financial ratios as these have been calculated for you and are included as an attachment to this assignment. You can calculate additional ratios if you consider them helpful to your analysis and marks will be awarded for this.
The examiner will be awarding marks for your ratio analysis based on five main areas:
1. Your ability to relate the ratios to the financial performance of the business.
2. Your ability to study the accounts to find the information you need.
3. Your ability to demonstrate an understanding of the relationships between the ratios.
4. The ability to tailor your analysis to the needs of the user group you are addressing. Make sure that you address the specific concerns of the user in the question.
5. Your ability to arrive at a clear conclusion. Make sure you base your conclusions on your previous analysis.