Tesco Balance Sheet Health

Financial Health criteria checks 4/6

Tesco has a total shareholder equity of £11.6B and total debt of £7.1B, which brings its debt-to-equity ratio to 61.3%. Its total assets and total liabilities are £47.6B and £36.0B respectively. Tesco's EBIT is £3.0B making its interest coverage ratio 5.8. It has cash and short-term investments of £4.2B.

Key information

61.3%

Debt to equity ratio

UK£7.10b

Debt

Interest coverage ratio5.8x
CashUK£4.24b
EquityUK£11.58b
Total liabilitiesUK£35.98b
Total assetsUK£47.56b

Recent financial health updates

Recent updates

Financial Position Analysis

Short Term Liabilities: TCO2's short term assets (£17.8B) do not cover its short term liabilities (£22.0B).

Long Term Liabilities: TCO2's short term assets (£17.8B) exceed its long term liabilities (£14.0B).


Debt to Equity History and Analysis

Debt Level: TCO2's net debt to equity ratio (24.7%) is considered satisfactory.

Reducing Debt: TCO2's debt to equity ratio has increased from 49.5% to 61.3% over the past 5 years.

Debt Coverage: TCO2's debt is well covered by operating cash flow (50.3%).

Interest Coverage: TCO2's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet


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