(A)Prepare ratio analyses (for 2019, 2018, and 2017) for both companies.You should include the following ratios in your computations: 1. Profitability ratios Gross Profit margin Profit margin Return on assets Return on equity 2. Productivity Inventory Turnover Accounts Receivable Turnover PPE Turnover Asset Turnover 3. Solvency Debt-to-equity Times interest earned Return on Financial leverage 4. Liquidity Current Ratio Quick Ratio Operating cash flow to current liabilities Working capital
(A)Prepare ratio analyses (for 2019, 2018, and 2017) for both companies.You should include the following ratios in your computations: 1. Profitability ratios Gross Profit margin Profit margin Return on assets Return on equity 2. Productivity Inventory Turnover Accounts Receivable Turnover PPE Turnover Asset Turnover 3. Solvency Debt-to-equity Times interest earned Return on Financial leverage 4. Liquidity Current Ratio Quick Ratio Operating cash flow to current liabilities Working capital
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
(A)Prepare ratio analyses (for 2019, 2018, and 2017) for both companies.You should include the following ratios in your computations:
1. Profitability ratios
Gross Profit margin
Profit margin
Return on assets
Return on equity
2. Productivity
Inventory Turnover
PPE Turnover
Asset Turnover
3. Solvency
Debt-to-equity
Times interest earned
Return on Financial leverage
4.
Current Ratio
Quick Ratio
Operating
Transcribed Image Text:As Reported Annual Balance Sheet
Report Date
Scale
2019
Thousands
2018
2017
2016
Thousands
Thousands
Thousands
Cash & temporary cash investments
Store deposits in-transit
429,000
1,181,000
1,589,000
6,846,000
166,000
592,000
10,803,000
21,635,000
347,000
1,161,000
1,637,000
6,533,000
604,000
835,000
11,117,000
21,071,000
399,000
1,179,000
1,706,000
7,084,000
322,000
910,000
1,649,000
6,561,000
Receivables
Inventory
Assets held for sale
0.00
Prepaid & other current assets
Total current assets
522,000
10,890,000
21,871,000
6,814,000
1,066,000
3,076,000
1,539,000
45,256,000
898,000
10,340,000
21,016,000
Property, plant & equipment, net
Operating lease assets
Intangibles, net
1,258,000
3,087,000
1,335,000
38,118,000
1,100,000
2,925,000
984,000
37,197,000
1,153,000
3,031,000
965,000
36,505,000
Goodwill
Other assets
Total assets
Liabilities
Current portion of long-term debt including obligations under finance lea
Current portion of long-term debt including obligations under capital leas
Current portion of operating lease liabilities
Trade accounts payable
Accrued salaries & wages
1,965,000
3,157,000
3,560,000
2,252,000
597,000
6,349,000
1,168,000
6,059,000
1,227,000
5,858,000
1,099,000
5,818,000
1,234,000
251,000
Deferred income taxes
Liabilities held for sale
51,000
3,780,000
14,274,000
259,000
3,421,000
14,197,000
3,305,000
12,860,000
Other current liabilities
4,164,000
14,243,000
6,505,000
12,111,000
Total current liabilities
Noncurrent operating lease liabilities
Long-term debt including obligations under finance leases
Long-term debt including obligations under capital leases & financing ok
Deferred income taxes
1,466,000
608,000
1,750,000
36,683,000
12,072,000
1,562,000
494,000
1,881,000
30,283,000
12,029,000
1,568,000
792,000
1,706,000
30,292,000
11,825,000
1,927,000
1,524,000
1,659,000
29,795,000
Pension & postretirement benefit obligations
Other long-term liabilities
Total liabilities
Common shares
Additional paid-in capital
Accumulated other comprehensive income (loss)
Retained earnings (accumulated deficit)
Common shares in treasury, at cost
Noncontrolling interests
Total equity (deficit)
1,918,000
3,245,000
(346,000)
19,681,000
16,612,000
(51,000)
7,835,000
1,918,000
3,161,000
1,918,000
3,337,000
(640,000)
20,978,000
16,991,000
(29,000)
8,573,000
(471,000)
17,007,000
14,684,000
(26,000)
6,905,000
1,918,000
3,070,000
(715,000)
15,543,000
13,118,000
12,000
6,710,000
Additional Information
Net cash flows from operating activities
4,664,000
4,164,000
3,413,000
4,272,000
Land
Buildings & land improvements
Equipment
Leasehold improvements
Construction-in-progress
Leased property under capital leases & financing obligations
Total property, plant & equipment
Accumulated depreciation & amortization
Property, plant & equipment, net
3,299,000
12,553,000
15,031,000
10,832,000
3,166,000
966,000
45,847,000
23,976,000
21,871,000
3,254,000
12,245,000
14,277,000
10,306,000
2,716,000
1,066,000
43,864,000
22,229,000
21,635,000
3,201,000
12,072,000
13,635,000
9,773,000
2,050,000
1,000,000
41,731,000
20,660,000
21,071,000
3,197,000
11,643,000
13,495,000
9,342,000
1,979,000
932,000
40,588,000
19,572,000
21,016,000
Transcribed Image Text:As Reported Annual Income Statement
Report Date
Scale
2019
2018
2017
Thousands
Thousands
Thousands
Sales
122,286,000
95,294,000
26,992,000
21,208,000
884,000
2,649,000
2,251,000
603,000
121,162,000
94,894,000
26,268,000
20,305,000
884,000
2,465,000
2,614,000
620,000
26,000
228,000
1,782,000
3,978,000
900,000
3,078,000
32,000
3,110,000
122,662,000
95,662,000
27,000,000
21,568,000
Cost of sales
Gross Profit
Operating, general & administrative
Rent
Depreciation & amortization
Operating profit (loss)
Interest expense
911,000
2,436,000
2,085,000
601,000
Non-service component of company-sponsored pension plan costs
Mark to market gain (loss) on Ocado International Holdings Limited & Ocado Group plc securities
157,000
176,000
1,981,000
469,000
1,512,000
147,000
1,659,000
ㅇ
Gain on sale of businesses
Net earnings before income tax expense (benefit)
Income tax expense (benefit)
Net earnings after income tax expense (benefit)
Net earnings (loss) attributable to noncontrolling interests
Net earnings (loss) attributable to The Kroger Co.
1,484,000
(405,000)
1,889,000
18,000
1,907,000
Additional Information
Weighted average shares outstanding - basic
Weighted average shares outstanding - diluted
Year end shares outstanding
799,000
805,000
788,000
810,000
818,000
798,000
895,000
904,000
870,000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education