Question
Given the information below, disaggregate the ROA for each company into profit margin (PM) and asset turnover (AT). Explain why Whole foods has a higher
Given the information below, disaggregate the ROA for each company into profit margin (PM) and asset turnover (AT). Explain why Whole foods has a higher ROA, is it because of PM or AT?
Whole Foods:
Net Income= 551
Sales= 12,917
Average Assets=5416
Average Stockholders Equity=3840
The Kroger Co.
Net income= 1508
sales= 96751
average assets=24064
average stockholders equity=4090
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Management Accounting
Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton
7th Edition
978-1760421144, 1760421146
