FINANCIAL STATEMENT TESCO 2019 HORIZONTAL ANALYSIS

2018/19 2017/18 %
Particulars (£) (£) Change Change Analysis
Due to sell of more inventories, lower
SP, popularity of TESCO, better
selling tactics, selling in credit as
Sales Revenue 63911 57493 6418 11.16% payables has increased
Due to buying of more inventories,
Cost of Sales 59767 54141 5626 10.39% higher production costs
Due to increase in sales revenue over
Gross Profit 4144 3352 792 23.63% cost of sales
Due to increase in gross profit and gain
Operating Profit 2153 1839 314 17.07% on property related items
Increased due to Increase in Operating
Profit and also discontinue of
Net Profit 1320 1210 110 9.09% operation of One Stop Retail Business
Increase in receivables will aid in
increasing revenues, but it might affect
Trade Receivables 1640 1504 136 9.04% liquidity
Increase in inventories has helped to
improve revenues but overstocking
might lead to loss in opportunity cost,
theft or turning the inventories
Inventory Stock 2617 2264 353 15.59% obsolete
Change in
Retained Earning 5405 4250 1155 27.18% Increased due to increase in Net Profit
Non-Current Significantly due to increase in
Assets 36379 31135 5244 16.84% investments, acquisition of Booker
Majorly due to decrease in short-term
investments and cash & cash
Current Assets 12570 13600 -1030 -7.57% equivalents
Significantly due to decrease in short
Non-Current term borrowings, post-employment
Liabilities 13533 15171 -1638 -10.80% benefit obligations
Majorly due to increase in long term
Current Liabilities 20680 19233 1447 7.52% payables & borrowings
Total Equity There has been significant change in
Equity due to shares issued for
14834 10480 4354 41.55% acquisition of Bookers Group PLC

Reference: TESCO Annual Report 2018/19 (Group Income Statement,

Balance Sheet, Statement of Change in R/E and Cash Flow Statement