Safeway operates 1,678 supermarkets in the United States and Canada. In the United States, Safeway is located principally in the Western, Southwestern, Rocky Mountain, Midwestern, and Mid-Atlantic regions. Kroger operates 2,435 stores in Northeastern, Western, Midwestern, and Southern states. Supervalu operates 2,434 stores throughout the United States. Selected financial statement information for 2011 for these three companies follows (in millions of U.S. dollars).

1. For each of the three companies, compute the following ratios:
(a) Current ratio
(c) Asset turnover
(b) Debt ratio
(d) Return on equity
2. Which company uses its inventory most efficiently? Which company uses its property, plant, and equipment most efficiently?
3. What dangers might there be in making ratio comparisons without viewing the financial statement notes for the individual companies?

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Kroger Safeway Supervalu 7325.00 4,18680 Total Current Assets Total Assets Inventory Total Current Liabilities Total Liabilities Property, Plant, and Equipment Cost of Goods Sold Net Income Sales 23,476.00 5,114.00 9,105.00 19,510.00 14,464.00 71,494.00 602.00 90,374.00 3,225.00 12,053.00 2,150.00 3,590.00 12,032.00 6,362.00 28,081.00 1,040.00 36,100.00 15,073.60 246960 5,03830 11,384.50 9,637.60 31,836.50 516.70 43,630.20