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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

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 $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

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. (Round your answers to one decimal place.)

Best Buy Kroger Nordstrom Staples Walgreen
ROA Answer % Answer % Answer % Answer % Answer %
PM Answer % Answer % Answer % Answer % Answer %
AT Answer Answer Answer Answer Answer

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 Kroger Nordstrom Staples Walgreen
ART Answer Answer Answer Answer Answer
INVT Answer Answer Answer Answer Answer
PPET Answer Answer Answer Answer Answer

c. Compute the gross profit margin (GPM) for each company. (Round your answers to one decimal place.)

Best Buy Kroger Nordstrom Staples Walgreen
GPM Answer Answer Answer Answer Answer

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