The following table presents ROA calculations for three companies in the retail grocery industry using earnings (EBI) and balance sheet data for each company. These companies compete on price, quality of goods and service, convenience, and product mix. 7-Eleven operates convenience stores and generates approximately 25% of its revenue from gasoline sales. Publix Super Markets operates retail food supermarkets in Florida, Georgia, South Carolina, Alabama, and Tennessee. Albertson's is the second largest U.S. supermarket chain.

Required:
1. Which company has shown the strongest sales growth over the past three years?
2. Which company has shown the greatest improvement in profitability over the past three years?
3. Which company was the most profitable in Year 4° What was the source of that superior profitability—a profit margin advantage or better turnover?

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7-Eleven Corp. Sales Profit margin (EBI/Sales) Asset turnover (Sales/Average assets) ROA Margin X Asset turnover Publix Super Markets Sales Year I Year 2 Year 3 Year 4 $ 8,251,700 $9,178,711 $9,622,301 $10,109,744 1.7% 1.8% 1.4% 0.9% 3.20 3.38 3.41 3.39 5.5% 6.0% 4.9% 3.1% $13,068,900 Profit margin (EBI/Sales) 3.5% $14,575,031 3.6% $15,284,229 3.5% $15,930,602 4.0% Asset turnover (Sales/Average assets) 3.38 ROA Margin X Asset turnover 11.9% 3.49 12.7% 3.53 12.3% 3.46 13.8% Albertson's Sales $37,478,000 $35,501,000 $36,605,000 $35,626,000 Profit margin (EBI/Sales) 1.6% 2.7% 2.7% 3.1% Asset turnover (Sales/Average assets) 2.43 2.23 2.28 2.28 ROA Margin X Asset turnover 3.9% 6.1% 6.3% 7.0%