Financial Analysis

Tesco_Reformulated BS

TED BAKER PLC (TED)
REFORMULATED BALANCE SHEETS
(in millions)
	1/28/2014 GBP	1/28/2013 GBP	1/28/2012 GBP	1/28/2011 GBP	1/28/2010 GBP
Net operating assets (NOA):
Operating assets
Cash	7.38	28.521	9.823	8.56	13.536
Accounts receivable, less allowance for doubtful account	37.552	23.269	19.754	20.151	18.468
Inventories	111.114	80.432	67.673	51.872	42.492
Property, plant and equipment, net	51.804	45.083	45.412	35.68	28.368
Other assets	14.606	19.356	16.945	13	11.321
Total operating assets	222.456	196.661	159.607	129.263	114.185
Operating liabilities
Accounts payable	57.046	22.049	22.097	15.91	18.888
Income taxes payable	7.202	3.857	4.36	3.353	3.761
Other liabilities	-5.023	21.908	14.939	18.436	15.614
Total operating liabilities	59.225	47.814	41.396	37.699	38.263
Net operating assets (NOA):	163.231	148.847	118.211	91.564	75.922
Net financial assets (obligations) (NFA/NFO):
Financial assets
Short term investment	3.547	0.499	0.544	0.411	0.102
Total financial assets	3.547	0.499	0.544	0.411	0.102
Financial liabilities
Current portion of long-term debt	26.204	37.282	19.862	6.79	0
Long-term debt	0	0	0	0	0
Preferred Stock	0.0	0.0	0.0	0.0	0.0
Total financial liabilities	26.2	37.3	19.9	6.8	0.0
Net financial Obligations (NFA/NFO)	-22.7	-36.783	-19.318	-6.379	0.102
NET FINANCIAL OBLIGATIONS (ASSETS)	22.657	36.783	19.318	6.379	-0.102
less minority interest	0.0	0.0	0.0	0.0	0.0
Common Shareholders' Equity (CSE)	140.6	112.1	98.9	85.2	76.0
CSE as per Thomson Analytics	140.6	112.1	98.9	85.2	76.0
Check reformulated = conventional (must be 0)	0.0	0.0	0.0	0.0	0.0

Tesco_Decomposition

Analysis of profitabililty
A. Analysis of ROCE
	Formula
		1/28/2014 GBP	1/28/2013 GBP	1/28/2012 GBP	1/28/2011 GBP	1/28/2010 GBP
ROCE	Comprhensive Income/Common Share Equity	18.89	20.76	21.57	24.93	24.65
FIRST LEVEL
	RNOA + (FLEV x (RNOA - NBC))	19.00	20.85	21.62	25.00	24.74
RNOA	OI/NOA	17.90	17.64	19.91	24.55	26.09
FLEV	NFO/CSE	0.16	0.33	0.20	0.07	-0.00
NBC	NFE/NFO	11.09	7.88	11.13	18.48	-978.20
SPREAD	(RNOA - NBC)	6.81	9.76	8.77	6.07	1004.28
SECOND LEVEL
PM	OI/SALES	7.540	8.157	9.247	10.425	10.553
ATO	SALES/NOA	2.37	2.16	2.15	2.35	2.47
	RNOA	17.90	17.64	19.91	24.55	26.09
THIRD LEVEL
PM	GM/SALES	16.61	18.94	21.03	21.36	21.94
	operating expense/SALES	6.77	7.88	8.79	7.97	7.67
	TAXES/SALES	2.44	3.00	3.43	3.31	4.41
	Other income/sales	0.147	0.103	0.432	0.348	0.698
		7.540	8.157	9.247	10.425	10.553
ATO	1/ATO	0.42	0.46	0.46	0.42	0.40
	CASH/SALES	0.019	0.089	0.039	0.040	0.072
	RECEIVABLES/SALES	0.097	0.072	0.078	0.093	0.098
	INVENTORIES/SALES	0.2867	0.2499	0.2659	0.2406	0.2264
	OTHER CURR. ASSETS/SALES	0.0377	0.0601	0.0666	0.0603	0.0603
	PPE/SALES	0.1337	0.1400	0.1785	0.1655	0.1511
	ACCOUNTS PAYABLE/SALES	0.1472	0.0685	0.0868	0.0738	0.1006
	INCOME TAXES/SALES	0.0186	0.0120	0.0171	0.0156	0.0200
	OTHER .LIABILITIES/SALES	-0.0130	0.0681	0.0587	0.0855	0.0832
		0.42	0.46	0.46	0.42	0.40

Tesco_Reformulated IS

TED BAKER PLC (TED)
Reformulated Income Statement
(in millions)
	1/28/2014 GBP	1/28/2013 GBP	1/28/2012 GBP	1/28/2011 GBP	1/28/2010 GBP
Operating Income
Revenues	387.56	321.92	254.47	215.63	187.70
Cost of sales	54,495.00	50,814.00	48,546.00	42,692.00	38,523.00
Gross margin	6,436.00	6,096.00	5,352.00	4,606.00	4,118.00
Operating expenses	2,950.00	3,339.00	2,790.00	2,003.00	1,976.00
Other operating income (expense)	326.00	803.00	554.00	284.00	536.00
Operating income from sales(before tax)	3,812.00	3,560.00	3,116.00	2,887.00	2,678.00
Taxes
Tax as reported	864.00	840.00	779.00	673.00	772.00
Other tax adjustments
Tax benefit on net interest	83	127	94	41	56
Operating income from sales (after tax)	2,865	2,593	2,243	2,173	1,850
Dirty surplus items
Equity Earnings	57.00	33.00	110.00	75.00	131.00
Operating Income (after tax)	2,922	2,626	2,353	2,248	1,981
Financing Expense (Income)
Interest expense	612.00	686.00	552.00	353.00	290.00
Interest income	131.00	114.00	91.00	91.00	56.00
Other interest adjustments	-147.00	-155.00	-152.00	-103.00	-78.00
Net interest expense	334.00	417.00	309.00	159.00	156.00
less Tax benefit from Net Interest Expense	-83	-127	-94	-41	-56
Preferred dividends
Net Financial Expense (after tax)	251	290	215	118	100
Minority interest	16.00	9.00	5.00	6.00	7.00
Comprehensive income to Common	2,655	2,327	2,133	2,124	1,874
Comprehensive Income to Common as per Thomson	2,655	2,327	2,133	2,124	1,874
Check Row 30 = Row 31	0	0	0	0	0
Tax allocation
a. Calculate average tax rate (as rate not given )
Operating Income	3486	2757	2562	2603	2142
Income taxes for year	864	840	779	673	772
Average tax rate (Income taxes / Operating Income)	25%	30%	30%	26%	36%
b. Allocation of tax cost
Allocation to financing activities
NFE	334.00	417.00	309.00	159.00	156.00
Tax rate	25%	30%	30%	26%	36%
Tax benefit (NFE x tax rate)	83	127	94	41	56

Tesco_Trend_Bal_Sheet_base_year

TED BAKER PLC (TED)
REFORMULATED BALANCE SHEETS
(in millions)
	1/28/2014 GBP	1/28/2013 GBP	1/28/2012 GBP	1/28/2011 GBP	1/28/2010 GBP	1/28/2010 GBP
Net operating assets (NOA):	%	%	%	%	%
Operating assets
Cash	54.52	210.70	72.57	63.24	100	13.536	7.38	28.521	9.823	8.56
Accounts receivable, (Net)	203.34	126.00	106.96	109.11	100	18.468	37.552	23.269	19.754	20.151
Inventories	261.49	189.29	159.26	122.07	100	42.492	111.114	80.432	67.673	51.872
Property, plant and equipment, net	182.61	158.92	160.08	125.78	100	28.368	51.804	45.083	45.412	35.68
Other assets	129.02	170.97	149.68	114.83	100	11.321	14.606	19.356	16.945	13
Total operating assets	194.82	172.23	139.78	113.20	100	114.185	222.456	196.661	159.607	129.263
Operating liabilities
Accounts payable	302.02	116.74	116.99	84.23	100	18.888	57.046	22.049	22.097	15.91
Income taxes payable	191.49	102.55	115.93	89.15	100	3.761	7.202	3.857	4.36	3.353
Other liabilities	-32.17	140.31	95.68	118.07	100	15.614	-5.023	21.908	14.939	18.436
Total operating liabilities	154.78	124.96	108.19	98.53	100	38.263	59.225	47.814	41.396	37.699
Net operating assets (NOA):	215.00	196.05	155.70	120.60	100	75.922	163.231	148.847	118.211	91.564
Net financial assets (obligations) (NFA/NFO):
Financial assets
Short term investment	3477.45	489.22	533.33	402.94	100	0.102	3.547	0.499	0.544	0.411
Total financial assets	3477.45	489.22	533.33	402.94	100	0.102	3.547	0.499	0.544	0.411
Financial liabilities
Current portion of long-term debt					100	0	26.204	37.282	19.862	6.79
Long-term debt					100	0	0	0	0	0
Preferred Stock					100	0	0	0	0	0
Total financial liabilities					100	0	26.204	37.282	19.862	6.79
Net financial Obligations (NFA/NFO)	-22212.75	-36061.76	-18939.22	-6253.92	100	0.102	-22.657	-36.783	-19.318	-6.379
NET FINANCIAL OBLIGATIONS (ASSETS)	-22212.75	-36061.76	-18939.22	-6253.92	100	-0.102	22.657	36.783	19.318	6.379
less minority interest						0	0	0	0	0
Common Shareholders' Equity (CSE)	184.91	147.41	130.08	112.05	100	76.024	140.574	112.064	98.893	85.185

Tesco_Trend_Inc_Statem

TED BAKER PLC (TED)
Reformulated Income Statement
(in millions)
	1/28/2014 GBP	1/28/2013 GBP	1/28/2012 GBP	1/28/2011 GBP	1/28/2010 GBP	1/28/2010 GBP
	%	%	%	%	%
Operating Income
Revenues	206.48	171.51	135.57	114.88	100	187.70	387.564	321.921	254.466	215.625
Cost of sales	141.46	131.91	126.02	110.82	100	38,523.00	54495	50814	48546	42692
Gross margin	156.29	148.03	129.97	111.85	100	4,118.00	6436	6096	5352	4606
Operating expenses	149.29	168.98	141.19	101.37	100	1,976.00	2950	3339	2790	2003
Other operating income (expense)	60.82	149.81	103.36	52.99	100	536.00	326	803	554	284
Operating income from sales(before tax)	142.35	132.94	116.36	107.80	100	2,678.00	3812	3560	3116	2887
Taxes
Tax as reported	111.92	108.81	100.91	87.18	100	772.00	864	840	779	673
Other tax adjustments
Tax benefit on net interest	147.23	225.97	167.11	73.12	100	56	82.7814113597	127.0511425462	93.9543325527	41.109104879
Operating income from sales (after tax)	154.90	140.18	121.26	117.47	100	1,850	2865.2185886403	2592.9488574537	2243.0456674473	2172.890895121
Dirty surplus items
Equity Earnings	43.51	25.19	83.97	57.25	100	131.00	57	33	110	75
Operating Income (after tax)	147.53	132.57	118.79	113.49	100	1,981	2922.2185886403	2625.9488574537	2353.0456674473	2247.890895121
Financing Expense (Income)
Interest expense	211.03	236.55	190.34	121.72	100	290.00	612	686	552	353
Interest income	233.93	203.57	162.50	162.50	100	56.00	131	114	91	91
Other interest adjustments	0.00	0.00	0.00	0.00		-78.00	-147	-155	-152	-103
Net interest expense	214.10	267.31	198.08	101.92	100	156.00	334	417	309	159
less Tax benefit from Net Interest Expense	0.00	0.00	0.00	0.00		-56	-82.7814113597	-127.0511425462	-93.9543325527	-41.109104879
Preferred dividends
Net Financial Expense (after tax)	251.78	290.60	215.53	118.16	100	100	251.2185886403	289.9488574538	215.0456674473	117.890895121
Minority interest	0.00	0.00	0.00	0.00		7.00	16	9	5	6
Comprehensive income to Common	141.68	124.17	113.82	113.34	100	1,874	2655	2327	2133	2124
							3486	2757	2562	2603	2142
							864	840	779	673	772
							0.247848537	0.3046789989	0.3040593286	0.2585478294	0.360410831
							334	417	309	159	156
							0.247848537	0.3046789989	0.3040593286	0.2585478294	0.360410831

Tesco_Common_Size_IS

TESCO PLC (TSCO)
Reformulated Income Statement
(in millions)
	1/28/2014 GBP	1/28/2013 GBP	1/28/2012 GBP	1/28/2011 GBP	1/28/2010 GBP		02/26/2014 % of Revenues	02/27/2013 % of Revenues	02/28/2012 % of Revenues	02/23/2011 % of Revenues	02/24/2010 % of Revenues
Operating Income
Revenues	387.56	321.92	254.47	215.63	187.70		100.00	100.00	100.00	100.00	100.00
Cost of sales	54,495.00	50,814.00	48,546.00	42,692.00	38,523.00		14060.90	15784.62	19077.60	19799.19	20523.71
Gross margin	6,436.00	6,096.00	5,352.00	4,606.00	4,118.00		1660.63	1893.63	2103.23	2136.12	2193.93
Operating expenses	2,950.00	3,339.00	2,790.00	2,003.00	1,976.00		761.16	1037.21	1096.41	928.93	1052.74
Other operating income (expense)	326.00	803.00	554.00	284.00	536.00		84.12	249.44	217.71	131.71	285.56
Operating income from sales(before tax)	3,812.00	3,560.00	3,116.00	2,887.00	2,678.00		983.58	1105.86	1224.53	1338.90	1426.74
Taxes
Tax as reported	864.00	840.00	779.00	673.00	772.00		222.93	260.93	306.13	312.12	411.29
Other tax adjustments
Tax benefit on net interest	83	127	94	41	56		21.36	39.47	36.92	19.07	29.95
Operating income from sales (after tax)	2,865	2,593	2,243	2,173	1,850		739.29	805.46	881.47	1007.72	985.50
Dirty surplus items
Equity Earnings	57.00	33.00	110.00	75.00	131.00		14.71	10.25	43.23	34.78	69.79
Operating Income (after tax)	2,922	2,626	2,353	2,248	1,981		754.00	815.71	924.70	1042.50	1055.29
Financing Expense (Income)
Interest expense	612.00	686.00	552.00	353.00	290.00		157.91	213.10	216.92	163.71	154.50
Interest income	131.00	114.00	91.00	91.00	56.00		33.80	35.41	35.76	42.20	29.83
Other interest adjustments	-147.00	-155.00	-152.00	-103.00	-78.00
Net interest expense	334.00	417.00	309.00	159.00	156.00		86.18	129.53	121.43	73.74	83.11
less Tax benefit from Net Interest Expense	-83	-127	-94	-41	-56
Preferred dividends
Net Financial Expense (after tax)	251	290	215	118	100		64.82	90.07	84.51	54.67	53.16
Minority interest	16.00	9.00	5.00	6.00	7.00
Comprehensive income to Common	2,655	2,327	2,133	2,124	1,874		685.05	722.85	838.23	985.04	998.40

Inter-firm_ratios

DRIVERS OF PROFITABILITY (ROCE)
		2010	2011	2012	2013	2014
ROCE	Ted	18.8868	20.7649	21.5688	24.9340	24.6501
	Ralph	0.0000	0.1982	0.1864	0.1718	0.1539
First-Level Decomposition
RNOA	Ted	17.902	17.642	19.905	24.550	26.090
	Ralph	0.0000	0.2028	0.2020	0.1883	0.1724
FLEV	Ted	0.161	0.328	0.195	0.075	-0.001
	Ralph	0.0191	-0.0082	-0.0644	-0.0798	-0.0896
SPREAD	Ted	6.8144	9.7592	8.7736	6.0688	1004.2848
(RNOA-NBC)	Ralph	0.0000	0.5678	0.2412	0.2074	0.2075
NBC	Ted	11.0879	7.8827	11.1319	18.4811	-978.1952
	Ralph	0.0000	-0.3650	-0.0393	-0.0191	-0.0350
Second Level Decomposition
PM	Ted	7.5400	8.1571	9.2470	10.4250	10.5529
	Ralph	0.0000	0.1096	0.1006	0.1012	0.0983
ATO	Ted	2.3743	2.1628	2.1526	2.3549	2.4723
	Ralph	0.0000	1.8500	2.0072	1.8613	1.7548

Inter-firm_Graphs

Tesco 2010 2011 2012 2013 2014 18.886849630799439 20.764920045688175 21.568766242302285 24.933967247754886 24.65011049142376 Kroger 2010 2011 2012 2013 2014 0 0.19815059445178335 0.18644763860369612 0.17175537870305937 0.15385355836488473 Tesco 2010 2011 2012 2013 2014 17.902350586838747 17.641933377587414 19.905471296641654 24.549942063704229 26.089617111827213 Kroger 2010 2011 2012 2013 2014 0 0.20280129519876552 0.20197484497784071 0.18830231812196865 0.17244559310697044 Tesco 2010 2011 2012 2013 2014 1 Kroger 2010 2011 2012 2013 2014 1.9087754090233021E-2 -8.19022457 06737126E-3 -6.4366872005475695E-2 -7.9765182921293906E-2 -8.9616890200859917E-2 Tesco 2010 2011 2012 2013 2014 0.16117489720716494 0.32823208166761841 0.19534244081987601 7.4884075834947467E-2 -1.3416815742397137E-3 Kroger 2010 2011 2012 2013 2014 0 -0.36503426374728398 -3.9254935037314878E-2 -1.9143321854015797E-2 -3.5015686797019184E-2 Tesco 2010 2011 2012 2013 2014 7.5399639508320568 8.1571219567960895 9.2469943624975706 10.425001252735138 10.55288178137531 Kroger 2010 2011 2012 2013 2014 0 0.10962074329390437 0.10062378237878458 0.10116887437781016 9.827067852786904E-2 Tesco 2010 2011 2012 2013 2014 2.3743284057562599 2.1627644494010627 2.1526423090913704 2.3549102267266608 2.4722741761281313 Kroger 2010 2011 2012 2013 2014 0 1.8500266382525306 2.0072277169778192 1.8612673045937327 1.7548021005885879 Tesco 2010 2011 2012 2013 2014 6.8144488946343333 9.7592468796466783 8.7735907993175619 6.0688486131611654 1004.2848167603141 Kroger 2010 2011 2012 2013 2014 0 0.56783555894604953 0.2412297800151556 0.20744563997598445 0.20746127990398963

RNOA

FLEV

NBC

First_Level_Interfirm

Second_Level_Interfirm