Financial Reporting Coursework Example | Topics and Well Written Essays - 1750 words

Financial Reporting - Coursework Example Therefore, this is a positive perspective that has greatly contributed to the company’s success. Tesco plc has a market share of around 30 %. It is the second largest supermarket in terms of revenues after Walmart. The company targets the general public with its goods and services. It made an expansion and is currently offering financial services via Banking. The bank is known as Tesco Bank. Lastly, Tesco company is a publicly traded Company on the London Stock Exchange. The company’s share prices for 2011, 2012 and 2013 were  £ 425,  £ 391and  £ 336. Therefore, this paper contains analyses on the Company’s financial performance for two years, that is, (2012 and 2013), profitability analysis, leverage analysis, efficiency ratios, investment analysis, and analysis of the segmental performance and lastly, the analysis of the company’s accounting policies for goodwill and other intangible assets. Return on capital employed (ROCE) – capital employed is total assets – current liabilities. Therefore, return on capital employed ratio indicates the return generated by every pound invested as capital employed. Concerning the case study, in 2012 and 2013, ROCE for Tesco PLC was 8.9% and 0.38% respectively. This means that in 2012, 8.9% of the company’s net profit was generated by the company’s capital employed. However, the company’s ROCE decreased in the year 2013 due to a sharp reduction in the net profit. The profitability level decreased because loss for the year from discontinued operations increased by  £ 916 million (Duncan 2009, pp. 42-44). Gross profit margin – the ratio indicates a company’s financial health after meeting the cost of sales. It also indicates the company’s ability to pay for future operating costs. Concerning Tesco PLC, the ratio for 2012 and 2013 are 8.4% and 6.3% respectively. This means that in the year 2013, 6.3 % of the