.com/ereader/4777 #page/263 AD) Auto Zoom 263 P5-46. Comparing Profitability and Turnover Ratios for Retail Companies Selected financial statement data for Best Buy Co., Inc, The Kroger Co., Nordstrom, Inc., Staples, Inc., and Walgreen Co. is presented in the following table: LO3 MBC Best Buy Co, Inc. NYSE :: BBY The Kroger Co. NYSE:: KR Nordstrom, Inc. NYSE : JWN Staples, Inc. NASDAQ:SPLS Walgreen Co. NYSE :: WAG (s millions) Best Buy Kroger Nordstrom Staples Walgreen ....$40,339 $108,465 $13,506 $22,492 $76,392 16,691 54,823 156 1,932 2,925 6,464 12,198 36,332 Sales revenue 49 135 1,883 2,236 1,788 Average total assets....14,63529,9198,910 10,744 90 1,233 1,294 ...a.. 5,275 85,512 488 1,728 1,191 5,670 17403 8,406 138 720 2,489 1,632 3,145 Average inventories REQUIRED for each com- Compute return on assets (ROA) profit margin (PM) and asset turnov pany. Discuss the relative importance of PM and AT for each company. a. 264 Chapter 5 Analyzing and Interpreting Financial Statements Compute accounts receivable turnover (ART), inventory turnover (INVT) and property, plant, and equipment turnover (PPET) for each company. Discuss any difference that you observe. Compute the gross profit margin (GPM) for each company. How does the GPM differ across companies? Does this difference seem to correlate with differences in ART or INVT? Explain. b. c