Developing Personal and Managerial Effectiveness

Developing Personal and Managerial Effectiveness

Segmental Revenue of European Region

Analysis

Tesco is earning 26 % of his total revenue from European region through Ireland, followed by Poland, who has a share of 22%. Hungary is contributing 20% towards Tesco revenues from European region. Czech Republic has a share of 15 % in the revenues. Then two other states Slovakia and Turkey are contributing 10 and 7 % respectively.

Revenue, stores and number of Employees

Analysis:

Tesco is majorly operating in UK, where it had the largest number of stores, followed by larger number of employees and ultimately his contribution to Tesco revenue is higher than other states. Then comes Asia, where Tesco has second largest number of stores and employees, but contribution to revenue is not that sufficient. Later, comes Europe, whose number f stores and employees are lesser than Asia, but their contribution to revenue is substantial than Asia. Lastly, there is US in terms of number of stores and employees. Tesco has few stores and number of employees in US and therefore, there contribution to revenue is lesser than the other states.

Profitability Ratios

Profitability ratios display an organization's overall performance and performance. We can split these ratios into two types: Return and margins. Ratios that display margins signify the organization's capability to change sales dollars into profits at various stages of statistic. Ratios that display profits signify the organization's capability to measure the overall performance of the firm in generating profits for its investors (Brigham et al., 2004).

Gross Profit Margin

It appears at price of products distributed as a sales percentage. This rate gives the impressions that how well an organization manages the price of its inventory and the developing of its products and therefore become successful in passing this cost to its clients. Higher profit margins ensure higher return on sales (Appleyard, 2006). Tesco's Profit Margin for 2009 was 7.7% which showed a small growth and reached 8% in 2010.

Operating Profit Margin

Operating Profit is also recognized as EBIT and is revealed on the organization's earnings declaration. EBIT is earnings before interest and taxation. The operating revenue margin appears at EBIT as a percentage of sales. The operating revenue margin rate is an evaluation of overall operating performance, including all the costs of everyday business action. The operating profit margin for the year 2009 was 5.8% which again showed a small increase in 2010, when the Operating Margin became 6.07%.

Net Profit Margin

The net profit margin reveals how much of each dollar sales has contributed towards the net income after all costs are paid out. The net income margin calculates the earning after taking in to account all the costs incurred such as taxation, interest, and depreciation. Again the growth in Net Profit margin is not substantial; it was 3.8% in 2009 which became 4 % in 2010.

Return on assets

The return on assets is a measure of efficiency of the company that whether the company is able to generate good earnings by managing its assets effectively. It directs the amount of revenue ...