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or customers. In addition, the Tesco is based on the low prices business strategy in the whole year keeping the competitive power compared to other companies. Due to some supermarkets would like to use the staggered discount as promotions, the Tesco Company is always keeping the lower prices compared with other companies can absorb more and more people’s attentions. In the end, the Tesco Company is trying to expend by different ways. For example, the Tesco is founded some Tesco Express which located to the area of dwelling house, for increasing the degree of convenient. Therefore, the operating activities of Tesco Company can help the business keep their competitive advantages and enlarge the business position in this industry. 

4.0 Overview of the Competitor Company
ASDA supermarket is a quite strong competitor for Tesco plc in United Kingdom, which is the second largest chain after Tesco. Although the ASDA was founded in 1949 that later than Tesco, the company has rapid development all over the world after 1990s. From the FAME database, it can got some financial data about ASDA company in recent years, which has shown the health and steady financial performance. In 2009, the return on capital employed of ASDA is 11.84%, mentions the status of making profits. Based on that, the company has quite perfect ability on refunding short-term liabilities, because the current ratio and quick ratio are 0.59:1 and 0.63:1 separately. In addition, the fixed asset turnover of ASDA is 3.80 has pointed out the ability of financial management. The gearing ratio is 84.49% can let more and more investors show their interest on such a good company’s performance. 

5.0 Ratio Analysis Performance
5.1 Profitability
The Appendix 1 has shown the calculations about the profitability of the Tesco. The positive data has already shown that the Tesco plc is keeping making profits, which indicates quite healthy primary ratios on profitability. The Return on Capital Employed (R.O.C.E.) means the stock returns in a certain period, which is the indicator for the company’s ability of using capitals. Although the R.O.C.E of the Tesco has decreased from 14.40% to 11.84%, the net profit margin is still rising from 6.06% to 6.10% at the period 2008 to 2009. The reason is the lower asset turnover that is fall from 2.38 times to 1.94 times, so that the result influence the capital employed which is the total assert minus the current liabilities.

In addition, the profit margins are the ratios which can direct reflect the proportion of residuary value and the total prepaid capitals for the company in a year. The gross profit margin of Tesco is increased from 7.67% to 7.76%, this is result by the rising of the company’s sales. And, the operating expenses margin has already went up to 1.92% in 2009, which contribute the higher administration expenses. Compared to 2008, the expenditures on the cost of sales is about 6,441 mil pounds more that bring the Tesco got the falling R.O.C.E. ratio. Therefore, this proved that the working capitals for the Tesco is due to reducing the inefficiency inventory holdings for making the company’s gross profit margin is closed to the industry market average level in 2009.

However, the Net Profit Margin has tiny raised from 6.06% to 6.10%, because of the Tesco paid more interest and paid to bank in 2009 compare with 2008. And, 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。