The subject for this paper will be Whole Foods.
NOTE: All calculations must be shown
Part I
Complete research on your assigned publicly traded company by visiting the company website, investor relation section, and download the company’s latest annual report. Write a brief introductory paragraph on the company, including industry, etc. Then calculate for most recent year:
• Rate of growth in sales
• Rate of growth in cost of sales
• Rate of growth in operating expenses
• Rate of growth in Assets
Comment on your results.
Part II
Determine each for the most recent two years,
• Operating cash flow
• Investing cash flow
• Financing cash flow
How healthy is the company from a cash flow standpoint? Comment.
Part III
Perform the following ratios for the current year and prior year and comment on results:
• Profit Margin
• Average Collection Period
• Total Asset Turnover
• Debt to Assets
• Inventory Turnover
• Current Ratio
• Quick Ratio
• Times Interest Earned
• Return on Assets
• Return on Equity
Part IV
Now go to the website of a publicly traded company in the same industry (a competitor of) the above, download the financial statements and calculate for the most current year:
• Return on Equity
• Return on Assets
Part V
Now compare the Return on Assets and Return on Equity for the two companies and compare by breaking down the 2 ratios (ROA and ROE) into components by Dupont Analysis for the most recent year. Comment on the results.
