Comparing Profitability and Turnover Ratios for Retail Companies Selected financial statement data for Best Buy Co., The Kroger Co., Nordstrom, Inc., ODP Corp., and Walgreens Boots Alliance, Inc. is presented in the following table: ($ millions) Sales revenue Cost of sales Interest expense Net income Best Buy The Kroger Nordstrom ODP Walgreens $43,638.0 $122,286.0 $15,524.0 $9,710.0 $139,537.0 33,590.0 95,294.0 9,932.0 7,578.0 111,520.0 64.0 603.0 151.0 42.0 639.0 1,541.0 496.0 (319.0) 1,512.0 424.0 Average receivables 1,082.0 1,647.5 727.0 Average inventories 5,291.5 163.5 1,949.0 981.0 4,050.0 627.5 8,811.5 6,434.5 Average PP&E 8,293.5 21,753.0 41,687.0 7,179.0 9,392.0 13,410.0 77,386.0 2,419.0 Average total assets 14,246.0 REQUIRED a. Compute return on assets (ROA), profit margin (PM), and asset turnover (AT) for each company. Assume a statutory tax rate of 25%. Determine relative importance of ROA, PM and AT for each company. Note: Round your answers to one decimal place. Note: Round your answers to one decimal place. Numerator Return on assets (ROA) Best Buy The Kroger Nordstrom ODP Walgreens Profit margin (PM) Best Buy The Kroger Nordstrom ODP Walgreens Asset turnover (AT) Best Buy The Kroger Nordstrom ODP Walgreens / Denominator 0/ 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0/ 0 / 0/ 0 / 0 / 0 = = 0 0 = 0 0 = 0 O 0 = 0 = 0 = 0 = = 0 0 = 0 = 0 = 11 = = = Result do de dese % % % % % % % % % % Company 1 Company 2 Company 3 Company 4 Company 5 The Kroger Nordstrom Best Buy ODP Walgreens Company with the highest ROA Company with the lowest ROA Company with the highest PM Company with the lowest PM Company with the highest AT Company with the lowest AT Accounts receivable turnover (ART) Best Buy The Kroger Nordstrom ODP b. Compute accounts receivable turnover (ART), and inventory turnover (INVT) for each company. Determine relative level of ART and INVT for each company. Note: Round your answers to one decimal place. Walgreens Inventory turnover (INVT) Best Buy The Kroger Nordstrom ODP Walgreens Numerator / Denominator = Result 0/ 0/ 0 / 0/ 0 / 0/ 0/ 0/ 0/ 0/ 0 = 0 0 = 0 = 0= = = 0 = 0 0 = 0 = 0 = = Week 1 Assignment || R Company 1 Company 2 Company 3 Company 4 Company 5 Best Buy The Kroger Nordstrom ODP Walgreens Company with the highest ART Company with the lowest ART Company with the highest INVT Company with the lowest INVT c. Compute the gross profit margin (GPM) for each company. How does the GPM differ across companies? Determine relative level of GPM for each company. Numerator / Denominator = Result Gross profit margin (GPM) Best Buy The Kroger Nordstrom ODP Walgreens 0/ 0/ 0/ 0/ 0/ Company with the highest GPM Company with the lowest GPM 0 O O O O 0 = || 0 = 0 0 Company 1 Company 2 Company 3 Company 4 Company 5 Best Buy The Kroger Nordstrom ODP Walgreens || || % % % % %