THE KROGER CO. Selected Financial Information (amounts in millions, except per share amounts) February 1, 2020 Total current assets Merchandise inventory Property and equipment, net of depreciation Total assets Total current liabilities Total long-term liabilities $ 10,890 7,084 February 2, 2019 $ 10,803 6,846 21,871 21,635 45,256 38,118 14,243 14,274 22,440 16,009 Total liabilities 36,683 30,283 Total shareholders' equity 8,573 7,835 Sales 122,286 121,852 Cost of goods sold 95,294 95,103 Gross profit 26,992 26,749 Operating income 2,251 2,614 Earnings from continuing operations before income tax expense 1,981 3,978 Income tax expense 469 900 Net earnings 1,512 3,078 Basic earnings per share $ 2.05 $ 3.80 PUBLIX SUPER MARKETS, INC. Selected Financial Information (amounts in millions except per share data) Total current assets Merchandise inventory Property and equipment, net of depreciation Total assets Total current liabilities Total long-term liabilities Total liabilities Total stockholders' equity Sales Cost of goods sold Gross profit Operating income Earnings from continuing operations before income taxes Income tax expense Net earnings Basic earnings per share December 28, 2019 December 29, 2018 $ 3,928 $ 3,814 1,913 1,849 9,185 8,637 24,507 18,983 3,701 3,010 3,905 978 7,606 3,988 16,901 14,995 38,116 36,094 27,740 26,311 10,376 9,783 2,889 2,744 3,786 2,921 781 540 3,005 2,381 $ 4.21 $ 3.28
THE KROGER CO. Selected Financial Information (amounts in millions, except per share amounts) February 1, 2020 Total current assets Merchandise inventory Property and equipment, net of depreciation Total assets Total current liabilities Total long-term liabilities $ 10,890 7,084 February 2, 2019 $ 10,803 6,846 21,871 21,635 45,256 38,118 14,243 14,274 22,440 16,009 Total liabilities 36,683 30,283 Total shareholders' equity 8,573 7,835 Sales 122,286 121,852 Cost of goods sold 95,294 95,103 Gross profit 26,992 26,749 Operating income 2,251 2,614 Earnings from continuing operations before income tax expense 1,981 3,978 Income tax expense 469 900 Net earnings 1,512 3,078 Basic earnings per share $ 2.05 $ 3.80 PUBLIX SUPER MARKETS, INC. Selected Financial Information (amounts in millions except per share data) Total current assets Merchandise inventory Property and equipment, net of depreciation Total assets Total current liabilities Total long-term liabilities Total liabilities Total stockholders' equity Sales Cost of goods sold Gross profit Operating income Earnings from continuing operations before income taxes Income tax expense Net earnings Basic earnings per share December 28, 2019 December 29, 2018 $ 3,928 $ 3,814 1,913 1,849 9,185 8,637 24,507 18,983 3,701 3,010 3,905 978 7,606 3,988 16,901 14,995 38,116 36,094 27,740 26,311 10,376 9,783 2,889 2,744 3,786 2,921 781 540 3,005 2,381 $ 4.21 $ 3.28
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
a. Compute the following ratios for the companies’ most recent fiscal years: [Note – some
amounts are different from the printed text version]. EXCEL MUST BE USED FOR
CALCULATIONS USING THE EXCEL TEMPLATE PROVIDED IN CANVAS. IT IS
IMPORTANT THAT I BE ABLE TO SEE YOUR WORK.
(1)Current ratio .
(2) Average days to sell inventory. (Use average inventory.)
(3) Debt to assets ratio.
(4)Return on investment . (Use average assets and use “earnings from continuing operations”
rather than “net earnings.”)
(5) Gross margin percentage.
(6) Asset turnover. (Use average assets.)
(7) Net margin. (Use “earnings from continuing operations” rather than “net earnings.”)
(8) Plant assets to long-term debt ratio.
b. Which company appears to be more profitable? Explain your answer and identify which ratio(s)
from Requirement a you used to reach your conclusion.
c. Which company appears to have the higher level of financial risk? Explain your answer and
identify which ratio(s) from Requirement a you used to reach your conclusion.
d. Which company appears to be charging higher prices for its goods? Explain your answer and
identify which ratio(s) from Requirement a you used to reach your conclusion.
e. Which company appears to be the more efficient at using its assets? Explain your answer and
identify which ratio(s) from Requirement a you used to reach your conclusion.
amounts are different from the printed text version]. EXCEL MUST BE USED FOR
CALCULATIONS USING THE EXCEL TEMPLATE PROVIDED IN CANVAS. IT IS
IMPORTANT THAT I BE ABLE TO SEE YOUR WORK.
(1)
(2) Average days to sell inventory. (Use average inventory.)
(3) Debt to assets ratio.
(4)
rather than “net earnings.”)
(5) Gross margin percentage.
(6) Asset turnover. (Use average assets.)
(7) Net margin. (Use “earnings from continuing operations” rather than “net earnings.”)
(8) Plant assets to long-term debt ratio.
b. Which company appears to be more profitable? Explain your answer and identify which ratio(s)
from Requirement a you used to reach your conclusion.
c. Which company appears to have the higher level of financial risk? Explain your answer and
identify which ratio(s) from Requirement a you used to reach your conclusion.
d. Which company appears to be charging higher prices for its goods? Explain your answer and
identify which ratio(s) from Requirement a you used to reach your conclusion.
e. Which company appears to be the more efficient at using its assets? Explain your answer and
identify which ratio(s) from Requirement a you used to reach your conclusion.
Transcribed Image Text:THE KROGER CO.
Selected Financial Information
(amounts in millions, except per share amounts)
February 1, 2020
Total current assets
Merchandise inventory
Property and equipment, net of depreciation
Total assets
Total current liabilities
Total long-term liabilities
$ 10,890
7,084
February 2, 2019
$ 10,803
6,846
21,871
21,635
45,256
38,118
14,243
14,274
22,440
16,009
Total liabilities
36,683
30,283
Total shareholders' equity
8,573
7,835
Sales
122,286
121,852
Cost of goods sold
95,294
95,103
Gross profit
26,992
26,749
Operating income
2,251
2,614
Earnings from continuing operations before income tax expense
1,981
3,978
Income tax expense
469
900
Net earnings
1,512
3,078
Basic earnings per share
$
2.05
$
3.80
Transcribed Image Text:PUBLIX SUPER MARKETS, INC.
Selected Financial Information
(amounts in millions except per share data)
Total current assets
Merchandise inventory
Property and equipment, net of depreciation
Total assets
Total current liabilities
Total long-term liabilities
Total liabilities
Total stockholders' equity
Sales
Cost of goods sold
Gross profit
Operating income
Earnings from continuing operations before income taxes
Income tax expense
Net earnings
Basic earnings per share
December 28, 2019 December 29, 2018
$ 3,928
$ 3,814
1,913
1,849
9,185
8,637
24,507
18,983
3,701
3,010
3,905
978
7,606
3,988
16,901
14,995
38,116
36,094
27,740
26,311
10,376
9,783
2,889
2,744
3,786
2,921
781
540
3,005
2,381
$
4.21
$
3.28
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