Unit 2 - P7 Business level 3

Gustavo Prado P7


-Illustrate the financial state of a given business.

For this task I am going to illustrate the financial state of Tesco. I will show my working out for
the financial statement of 2014 and 2013. And also explain how the working out is done in
properly.

Financial statement-




Gross profit margin= gross profit x 100 / turnover (sales)
2014 2013
4,010 x ,557 4,154 x ,406
= 6.3% = 6.6%

6.3% (2014) is good for tesco because it shows that the business is doing alright. This is
used to show if the profit is growing in amount to the size of the business. Tesco has
performed better in 2013 than 2014 as it shows in the calculation because there is more
gross profit.
To measuring the gross profit as a percentage is very important and Tesco’s gross profit
will need to be high to get good net profit.



Net profit margin = net profit x 100 / turnover (Sales)