Highlight any five limitations in the use of accounting ratios that you found in your analysis and evaluation of the company over the three-year period.

Financial accounting

Work on the published financial statements of Tesco plc for the last three years 2020 – 2017:

1. Analyse and evaluate the performance, liquidity and financial structure of the three years 2020 – 2017. Use the accounting ratios shown below and any other information relevant to Tesco plc. Information can be obtained from the annual report and accounts and any other source of evidence that you believe helps to explain the company’s performance and position.

2. Highlight any 5 limitations in the use of accounting ratios that you found in your analysis and evaluation of the company over the three-year period.

This may include reference to the movements in the company’s share price.