Below are several financial statement items for fiscal year 2016 for two grocery chains, Whole Foods Market, an upscale organic grocer, and The Kroger Co. a mainstream grocer. ($ millions)

($ millions)	Whole Foods Market	The Kroger Co.
Net income	$ 507	$ 1,957
Sales	15,724	115,337
Average assets	6,041	35,201
Average stockholders equity	3,497	6,754

1. Calculate each companys return on assets (ROA) and return on equity (ROE). Comment on any differences you observe.

2. Disaggregate the ROA for each company into profit margin (PM) and asset turnover (AT). Explain why Whole Foods has a higher ROA, is it because of PM or AT or both?