Comparing Profitability and Turnover Ratios for Retail Companies Selected financial statement data for Best Buy Co.,...

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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: Best Buy Kroger Nordstrom Staples Walgreen ($ millions) Sales revenue $50,705 $90,374 $10,877 $25,022 $72,184 Cost of sales 38,113 71,494 6,592 18,280 51,692 Interest expense 134 435 132 174 89 Net income 22 596 683 984 2,714 Average receivables 2,318 897 2,030 2,002 2,474 Average inventories 5,814 5,040 1,063 2,396 7,711 Average PP&E 3,647 14,306 2,394 2,114 11,355 Average total assets 16,927 23,491 7,977 13,671 26,865 Note: Assume a statutory tax rate of 35% for all companies. Required a. Compute return on assets (ROA), profit margin (PM) and asset turnover (AT) for each company. Assume a statutory tax rate of 35%. Round your answers to one decimal place. Best Buy Kroger ROA 96 PM 96 AT 96 Nordstrom Staples Walgreen % 96 % 96 96 % b. Compute accounts receivable turnover (ART), inventory turnover (INVT) and property, plant and equipment turnover (PPET) for each company. Round your answers to one decimal place. Best Buy ART INVT PPET Kroger Nordstrom Staples Walgreen c. Compute the gross profit margin (GPM) for each company. Round your answers to one decimal place. Best Buy GPM Kroger Nordstrom Staples Walgreen 96 % Comparing Profitability and Turnover Ratios for Retail Companies Selected financial statement data for Best Buy Co., Inc., The Kroger Co., Nordstrom, Inc., Staples, Inc., and Walgreen Co. is presented in the following table: Best Buy Kroger Nordstrom Staples Walgreen ($ millions) Sales revenue $50,705 $90,374 $10,877 $25,022 $72,184 Cost of sales 38,113 71,494 6,592 18,280 51,692 Interest expense 134 435 132 174 89 Net income 22 596 683 984 2,714 Average receivables 2,318 897 2,030 2,002 2,474 Average inventories 5,814 5,040 1,063 2,396 7,711 Average PP&E 3,647 14,306 2,394 2,114 11,355 Average total assets 16,927 23,491 7,977 13,671 26,865 Note: Assume a statutory tax rate of 35% for all companies. Required a. Compute return on assets (ROA), profit margin (PM) and asset turnover (AT) for each company. Assume a statutory tax rate of 35%. Round your answers to one decimal place. Best Buy Kroger ROA 96 PM 96 AT 96 Nordstrom Staples Walgreen % 96 % 96 96 % b. Compute accounts receivable turnover (ART), inventory turnover (INVT) and property, plant and equipment turnover (PPET) for each company. Round your answers to one decimal place. Best Buy ART INVT PPET Kroger Nordstrom Staples Walgreen c. Compute the gross profit margin (GPM) for each company. Round your answers to one decimal place. Best Buy GPM Kroger Nordstrom Staples Walgreen 96 %