Question
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:
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%.
Best Buy | Kroger | Nordstrom | Staples | Walgreen | ||||||
---|---|---|---|---|---|---|---|---|---|---|
ROA | % | % | % | % | % | |||||
PM | % | % | % | % | % | |||||
AT |
b. Compute accounts receivable turnover (ART), inventory turnover (INVT) and property, plant and equipment turnover (PPET) for each company.
Best Buy | Kroger | Nordstrom | Staples | Walgreen | |
---|---|---|---|---|---|
ART | |||||
INVT | |||||
PPET |
c. Compute the gross profit margin (GPM) for each company.
Best Buy | Kroger | Nordstrom | Staples | Walgreen | |
---|---|---|---|---|---|
GPM |
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