{"id":947,"date":"2014-10-27T07:39:50","date_gmt":"2014-10-27T07:39:50","guid":{"rendered":"http:\/\/www.asadkarim.co.uk\/?p=947"},"modified":"2014-10-27T07:39:50","modified_gmt":"2014-10-27T07:39:50","slug":"tesco-plc","status":"publish","type":"post","link":"https:\/\/www.asadkarim.co.uk\/?p=947","title":{"rendered":"Tesco PLC"},"content":{"rendered":"<p>The accounting scandal that has engulfed Tesco PLC is very complex. A hole of <strong>\u00a3263million<\/strong> that was due to an accounting overstatement.<\/p>\n<p>One has to keep things in context, and by looking at the finances, one can see the scale of Tesco.<\/p>\n<p>[<a title=\"Tesco Press Release\" href=\"http:\/\/www.tescoplc.com\/index.asp?pageid=188&amp;newsid=1074\" target=\"_blank\">http:\/\/www.tescoplc.com\/index.asp?pageid=188&amp;newsid=1074<\/a>]<\/p>\n<p>Sales of <strong>\u00a334 billion<\/strong> that was a <strong>drop of 4.4% year on year<\/strong>.<br \/>\nWhat is interesting is the profits at <strong>Tesco Bank, that was \u00a3102 million<\/strong>, while the actual UK stores delivered total profit of <strong>\u00a3499 million<\/strong><\/p>\n<p>The annual report gives a more granular breakdown<br \/>\n[<a title=\"Tesco PLC Annual Report\" href=\"http:\/\/www.tescoplc.com\/files\/pdf\/reports\/ar14\/download_annual_report.pdf\" target=\"_blank\">http:\/\/www.tescoplc.com\/files\/pdf\/reports\/ar14\/download_annual_report.pdf<\/a>]<\/p>\n<p>page 71 is the balance sheet.<\/p>\n<p>The liabilities are the interesting items<\/p>\n<p><strong>\u00a310,595 million of Trade and other payables<\/strong>. This is what Tesco owes to its trade suppliers, from gas and electric to the goods on the shelves that it gets on credit from its suppliers. These are short term liabilities where Tesco has to pay its suppliers within perhaps 30-90 days.<\/p>\n<p>\u00a3<strong>9,303 million on financial borrowings<\/strong>, such as loans and bonds issued.<\/p>\n<p><strong>\u00a33,193 million in pension<\/strong> liabilities<\/p>\n<p>Now with the deterioration in trading (sales) at Tesco it means that its credit status is potentially under threat, and one can see that it has vast sales of over \u00a334 billion, but with debts totalling over \u00a320 billion, Tesco has to do something to return to strong profitability, to meet all its liabilities.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The accounting scandal that has engulfed Tesco PLC is very complex. A hole of \u00a3263million that was due to an accounting overstatement. One has to keep things in context, and by looking at the finances, one can see the scale of Tesco. [http:\/\/www.tescoplc.com\/index.asp?pageid=188&amp;newsid=1074] Sales of \u00a334 billion that was a drop of 4.4% year on [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-947","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/947","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=947"}],"version-history":[{"count":1,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/947\/revisions"}],"predecessor-version":[{"id":948,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/947\/revisions\/948"}],"wp:attachment":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=947"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=947"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=947"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}