Calculate 3 profitability rations and 3 risk rations (show calculations) and use these ratios to comments on profitability and risk of the company.

From an investor's point of view, would you invest in the company?

Exhibit 1 Ahold Income Statement Income Statement millions of Eur Total revenues FY2008 25,648 FY2009 27,925 FY2010 29,530 FY2011 30.271 Cost of goods sold Selling expense Total expenses 18,777 4,924 23,701 20,338 5,488 25,826 21,610 5,714 27,324 22,350 5,652 28,002 Gross profit General and administrative expense Operating income 1,947 696 1,251 (343) 2,099 740 1,359 (316) 2,206 2,269 total 1,390 (288) (270) 1,387 Interest expense Interest and investment income Net interest expense (245) 20 (225) 141 124 Income/(loss) from affiliates Currency exchange gain (loss) Other non-operating income (expense) Earnings before taxes excl. u 106 (25) 38 1,189 (67) 1.162 nusual items 1,188 1,304 (46) (23) (39) (24) (30) (15) (25) Restructuring charges Asset writedown Legal settlements Other unusual items Earnings before taxes including unusual items 1.113 1.120 1,134 1,172 Income tax expense Earnings from continuing operations 226 148 972 271 863 140 887 195 1,802 1,032 (15) 1,017 (78) (10) Earnings of discontinued operations Extraordinary items and accounting change Net income to company Minority interest in eamings Net income 1.077 894 853 1,017 Souce: Capital IQ accessed August 2012 Dates of Filings: December 28, 2008, January 3, 2010, January 2, 2011, and January 1, 2012