Question 1Tesco Plc. is a British multi-national grocery and general merchandise retailer. The company’s financial statements for the period 2013-2017 are presented in Appendix 1. Required: Prepar

2017

2016

2015

2014

2013

Tesco

6.70

4.10

-27.90

9.80

7.70

Morrison

5.34

3.41

-11.49

-2.24

10.73

2017

2016

2015

2014

2013

Tesco

0.0279

0.0215

-0.131

0.0524

0.0436

Morrison

3.63

2.38

-8.64

-1.64

8.35

2017

2016

2015

2014

2013

Asset turnover

1.2195

1.2398

1.4087

1.267

1.2932

Morrison

3.63

2.38

-8.64

-1.64

8.35

2017

2016

2015

2014

2013

Net Profit Margin

0.0229

0.0173

-0.093

0.0414

0.0338

Morrison

1.99

1.35

-4.71

-1.00

4.85

2017

2016

2015

2014

2013

Gross Profit Margin

0.054

0.0515

-0.034

0.0631

0.0631

Morrison

3.70

3.83

4.53

6.07

6.66

2017

2016

2015

2014

2013

Receivable Collection Period

10.803

10.776

12.43

12.577

14.217

3.06

2.99

3.86

3.72

3.38

2017

2016

2015

2014

2013

Payable Payment Period

63.473

60.573

56.238

64.943

66.67

47.56

38.26

30.32

29.65

30.24

2017

2016

2015

2014

2013

Inventory Turnover Period

15.877

17.179

16.76

21.919

22.5

26.57

26.17

25.56

20.75

23.20

2017

2016

2015

2014

2013

Current Ratio

0.7013

0.7522

0.6038

0.7707

0.7002

0.41

0.48

0.54

0.50

0.57

2017

2016

2015

2014

2013

Asset Test Ratio

0.596

0.6289

0.4545

0.5937

0.5

0.20

0.25

0.25

0.20

0.24

2017

2016

2015

2014

2013

Gearing Ratio

66.37

62.71

65.95

45.08

41.28

49.86

74.84

92.13

79.22

57.65

2017

2016

2015

2014

2013

Interest Coverage Ratio

2.03

1.4

-8.76

4.66

4.77