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	134	435	132	174	89
Net income	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		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