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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.,

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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: ($ millions) Best Buy Kroger Nordstrom Staples Walgreen Sales revenue $51,705 $91,374 $11,877 $26,022 $73,184 Cost of sales 38,113 71,494 6,592 18,280 51,692 Interest expense Net income 134 435 132 174 89 82 606 673 974 2,614 Average receivables 2,318 897 2,030 2,002 2,474 Average inventories 5,914 5,140 1,163 2,496 7,811 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 ROA 0.5 x % PM 0.2 % Kroger 2.6 % 0.7 x % Nordstrom 8.4 x % AT 2.25 x 3.04 x 5.7 x % 0.83 x Staples 7.12 * % 3.74 x % Walgreen 9.73 x % 3.57 x % 1.34 x 1.92 x

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