Below are several financial statement items for fiscal year 2013 for two grocery chains, Whole Foods Market, an upscale organic grocer, and The Kroger Co., a mainstream grocer. ($ millions) a. Calculate each company's return on assets (ROA) and return on equity (ROE). Comment on any differences you observe. b. Disaggregate the ROA for each company into profit margin (PM) and asset turnover (AT). Explain why Whole Foods has a higher ROA, is it because of PM or AT or both? Whole Foods Market The Kroger Co. $1,508 Net income $551 12,917 5,416 96,751 24,064 Sales Average assets Average stockholders' equity 3,840 4,090

Below are several financial statement items for fiscal year 2013 for two grocery chains, Whole Foods Market, an upscale organic grocer, and The Kroger Co., a mainstream grocer. ($ millions) a. Calculate each company's return on assets (ROA) and return on equity (ROE). Comment on any differences you observe. b. Disaggregate the ROA for each company into profit margin (PM) and asset turnover (AT). Explain why Whole Foods has a higher ROA, is it because of PM or AT or both? Whole Foods Market The Kroger Co. $1,508 Net income $551 12,917 5,416 96,751 24,064 Sales Average assets Average stockholders' equity 3,840 4,090

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Description: Below are several financial statement items for fiscal year 2013 for two grocery chains, WholeFoods Market, an upscale organic grocer, and The Kroger Co., a mainstream grocer. ($ millions)a. Calculate each company's return on assets (ROA) and return

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

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Below are several financial statement items for fiscal year 2013 for two grocery chains, Whole
Foods Market, an upscale organic grocer, and The Kroger Co., a mainstream grocer. ($ millions)
a. Calculate each company's return on assets (ROA) and return on equity (ROE). Comment on any
differences you observe.
b. Disaggregate the ROA for each company into profit margin (PM) and asset turnover (AT). Explain
why Whole Foods has a higher ROA, is it because of PM or AT or both?
Whole Foods Market
The Kroger Co.
$1,508
Net income
$551
12,917
5,416
96,751
24,064
Sales
Average assets
Average stockholders' equity 3,840
4,090

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