Tesco (LSE:TSCO) Debt-to-Equity : 1.27 (As of Feb. 2024)

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What is Tesco Debt-to-Equity?

Tesco's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was £2,120 Mil. Tesco's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Feb. 2024 was £12,721 Mil. Tesco's Total Stockholders Equity for the quarter that ended in Feb. 2024 was £11,671 Mil. Tesco's debt to equity for the quarter that ended in Feb. 2024 was 1.27.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Tesco's Debt-to-Equity or its related term are showing as below:

LSE:TSCO' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.98 Med: 1.32 Max: 2.05
Current: 1.27

During the past 13 years, the highest Debt-to-Equity Ratio of Tesco was 2.05. The lowest was 0.98. And the median was 1.32.

LSE:TSCO's Debt-to-Equity is ranked worse than
72.3% of 278 companies
in the Retail - Defensive industry
Industry Median: 0.64 vs LSE:TSCO: 1.27

Tesco Debt-to-Equity Historical Data

The historical data trend for Tesco's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tesco Debt-to-Equity Chart

Tesco Annual Data

Trend

Feb15

Feb16

Feb17

Feb18

Feb19

Feb20

Feb21

Feb22

Feb23

Feb24

Debt-to-Equity

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1.34

1.30

0.98

1.23

1.27

Tesco Semi-Annual Data
	Aug14	Feb15	Aug15	Feb16	Aug16	Feb17	Aug17	Feb18	Aug18	Feb19	Aug19	Feb20	Aug20	Feb21	Aug21	Feb22	Aug22	Feb23	Aug23	Feb24
Debt-to-Equity	Get a 7-Day Free Trial															0.98	1.14	1.23	1.30	1.27

Competitive Comparison of Tesco's Debt-to-Equity

For the Grocery Stores subindustry, Tesco's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Tesco's Debt-to-Equity Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Tesco's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Tesco's Debt-to-Equity falls into.

Tesco Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Tesco's Debt to Equity Ratio for the fiscal year that ended in Feb. 2024 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(2120	+	12721)	/	11671
	=	1.27

Tesco's Debt to Equity Ratio for the quarter that ended in Feb. 2024 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(2120	+	12721)	/	11671
	=	1.27

Tesco (LSE:TSCO) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Tesco Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of Tesco's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

Tesco (LSE:TSCO) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Retail - Defensive » Tesco PLC (LSE:TSCO) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

TSCDY:USA TSCDF:USA TSCOl:UK TCO0:Germany TCO0:Germany TCO0:Germany TCO0:Germany

Address

Kestrel Way, Tesco House, Shire Park, Welwyn Garden, GBR, AL7 1GA

Website

https://www.tescoplc.com

Tesco is one of the largest food retailers in the world, operating thousands of stores in the United Kingdom, Ireland, and Europe. According to Kantar, Tesco is the market leader in the U.K. with a share of more than 27%, roughly double that of Asda or Sainsbury's. Tesco operates a core supermarket business in addition to convenience and neighborhood outlets. With a 35% digital market share in the U.K., the company holds a dominant position online. Tesco gained exposure to the cash-and-carry and out-of-home delivering industries with the landmark GBP 4 billion acquisition of Booker in 2018.