Financial Statement Analysis of Whole Foods Market, Inc. Darya Bechtel, Elizabeth Bishop, Kelly Fisher, Hafeza Islam, Maura Langan, and Jessica Zetnick This paper is submitted in partial fulfillment of the requirements for BUS 5473.50 Texas Woman’s University School of Management Dr. Baker November 26, 2013 Table of Contents Executive Summary 5 Company Description 6 Industry Description 7 The Economy 8 Profitability Analysis 10 Return on Assets Ratio 10 Cost of Goods Sold to Sales Ratio 11 Gross Profit Margin 11 Operating Profit Margin 12 Net Profit Margin 12 Horizontal Analysis of Income Statement 13 Vertical Analysis of Income Statement 14 Liquidity Analysis 15 Current Ratio 15 Quick Ratio 15 Accounts Receivables
(Points : 5) sales under $1,000,000 no accountants on staff insignificant receivables and payables all sales and purchases on account 5. (TCO D) Two companies report the same cost of goods available for sale, but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using _____. (Points : 5) LIFO will have the highest ending inventory FIFO will have the highest cost of goods sold FIFO will have the highest ending inventory LIFO will have the lowest cost of goods sold 6. (TCOs A, E) Equipment with a cost of $192,000 has an estimated salvage value of $18,000 and an estimated life of 4 years or 12,000 hours.
Although the bonds have the lowest cost of issuance among the choices, its Net Present Value (NPV) of $219 million is lower than the HUD 242. The Business Dictionary defines NPV as “the difference between the present value of the future cash flows from an investment and the amount of investment” (Business Dictionary, p. 1, 2012). The collateral requirement for the bonds is also much higher than the HUD 242. Because the collateral includes escrow on ECH’s gross receivables, ECH possibly may have less control over its future revenue stream. The simulator also took note of the four-year time frame of the expansion project versus the three-year spending limit on the bonds.
2. Efficient Market - Efficient market is one where the market price is an unbiased estimate of the true value of the investment. Depending on the form, the efficient market can show how the securities market reflects prices. 3. Primary Market – Primary market is where new securities are bought and sold for
Financial Statements: Part 1 Charles Graham ACC/497 December 15, 2014 Carolyn Lundy Financial Statements: Part 1 In Financial Statements Part 1 I will discuss The Home Depot’s annual report, to include the consolidated statement of earnings, the balance sheet, and the statement of cash flows. I will discuss some details of each sheet, the importance of the contents, business decisions associated with each sheet, and the benefits gained from the information contained in the sheets. The Consolidated Statement of Earnings-- income statement—informs a reader about the sales and expenses incurred by The Home Deport during the most recent financial year end, or fiscal year. A quick review of this income statement indicates the company has
CAGR: Operating income, % Operating income (EBIT) measures a company's earning power from ongoing operations and it largely used by investor because it excludes the effects of different capital structures and tax rates used in different companies. EBIT is "capital structure neutral" and is therefore a more appropriate way of comparing the earnings of different companies than net income
The elimination of short-term debt shows that Home Depot, Incorporated is not using such debt to meet short-term cash requirements. The cause of the elimination of short term debt may be caused by the improved cash position and the economy. Home Depot, Incorporated’s financial position and ratios look good. In fiscal year 2008, the long-term debt-to-equity ratio was 54.4% compared to fiscal year 2007’s 64.3%. In fiscal year 2008, the return on invested capital of continuing operations was 9.5% compared to fiscal year 2007’s 13.9%.
Taking about $2,691,000 and dividing it by $40,000,000 dollars would result in a return of equity of some 6.73.00%. This would then be the lowest by far of the three investment types. It would require by far the least amount of debt that would have to be used and financed and would also use the most working capital of assets being used to finance and fund the investment. Conservative EBIT-$6,000,000 Minus Interest-1,515,000 EBT-$4,485,000 Minus Tax Rate of
What are the key assumptions that especially influence WACC? 5. What are the free cash flows of the packaging machine investment? Should Koh approve the investment? Management Summary Financial Health The financial health or strength of a company is measured by its ability to service its financial obligations senior to the common shareholders.
In 2014 the debt ratio of Walmart was 0.60. The debt ratio shows the solvency of the company. A debt ratio is good if is the below the 1.0 threshold, thus Walmart is not too highly leverage and has an acceptable level of overall