Presented below are the consolidated balance sheets and income statements for Tesco, PLC, the world’s third largest retailer, for the years 2016 and 2015. Tesco is based in the United Kingdom.

Required
1. Calculate the following ratios for Tesco:

a. Return on equity

b. Return on assets

c. Return on sales

d. Financial leverage

e. Total debt to shareholders’ equity ratio

f. Long-term debt to shareholders’ equity ratio 

g. Current ratio 

h. Quick ratio 

i. Interest coverage ratio 

j. Accounts payable turnover 

k. Receivable turnover 

l. Inventory turnover 

m. Fixed asset turnover 

n. Asset turnover 

o. Common-size income statements 

p. Common-size balance sheets

(Assume no current portion of long-term debt is due.)
2. Comment on the company’s performance in 2016 relative to 2015.

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TESCO, PLC Group Income Statement For the years ended February 2016 and 2015 ( millions) Continuing operations: Revenue Cost of sales. 2016 2015 54,433 56,925 (51,579) (59,128) Gross profit (loss)... 2,854 (2,203) Administrative expenses (1,852) (2,574) Profit on property-related items. 44 (973) Operating profit (loss).. 1,046 (5,750) Share of post-tax profits of joint ventures and associates. (21) (13) Finance income 29 80 Finance costs. (892) (651) Profit (loss) before tax. 162 (6,334) Taxation 54 670 Profit (loss) for the year from continuing operations 216 (5,664) Discontinued operations: Loss for the year from discontinued operations... (87) (102) Profit (loss) for the year 129 (5,766) Attributed to: Owners of the parent Non-controlling interests 138 (5,741) (25) 129 (5,766)