# Financial Statement Analysis and Comparison of Kroger and Whole Foods Essay

Words: 1702
Pages: 7

ACC 300 FSA Project
Ratio Analysis of The Kroger Co. and Whole Foods Market, Inc.

TEAM

Jake Eriksen (002)

Brycen Goldstein (002)

16

Ross Wright (001)

Nicolas Kim

Omar Harb

(001)

(002)

Kroger
The Kroger Co. (referred to as Kroger) is a large grocery chain audited by PricewaterhouseCoopers LLP.
Kroger ended its FY 2012 on February 2, 2013, FY 2013 on February 1,
2014, and FY 2014 on January 31, 2015 (Saturday nearest January 31).
From page 39, we are told that 95% of inventories in 2014 and 2013 were counted using a LIFO costing method, stating the lower of cost or market. However, Kroger’s fuel inventory levels are determined using the FIFO cost method. The company uses the
There is no convertible debt
Dilutive effect of stock options is
7. There is no convertible debt
Face value of long-term debt + current portion of long-term debt including obligations under capital leases and financing obligations The revenue value is from
Kroger’s balance sheet item
“Sales”
Net income value used is “Net earnings attributable to The
Kroger Co.” Dividends paid is taken from pg. 25
Used “Merchandise costs, including advertising, warehousing, and transportation, excluding items shown separately below.” We convert the inventory levels to LIFO to compare.

Whole Foods
RATIO
Current Ratio
Return on
Assets
Return on
Equity
Return on
Sales
EPS
Diluted EPS

Average Day’s
Sales
Debt to Equity

EQUATION

RESULT

1,756
1,257

= 1.397

(5,744+5,538)/2

579

ℎℎ ′

ℎℎ
ℎ ℎ ℎℎ
ℎ ℎ
+

/365

(3,813+3,878)/2
579

571.7

Total Asset
Turnover
Dividend
Payout
Inventory
Turnover

367.8
579
370.5

= 1.574

(188+198)/2
(14,194)/365

(5,744+5,538)/2
170
579

= 4.963

= 0.160

14,194

9,150

Whole Foods has no preferred stock “Dilutive potential common shares include outstanding stock options and unvested