I need some help to this question I am struggling with... Based on these numbers/stats...

Which company appears to be the more efficient at using its assets? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion. I need a detailed answer please for this assignment PLEASE.

1. Compute the following ratios for the companies 2014 fiscal years:

1. Current ratio.

Total current Assets / Total current liabilities = Ratio

The Kroger Company

$8,830 / $10,705 = .82 =a ratio of .82:365 days

Whole Foods Market

$1,756 / $1,257 = 1.39 = a Ratio of 1.39:365 days

2. Average days to sell inventory. (Use average inventory.)

The Kroger Company

(Beginning Inventory + ending inventory) / 2 = average inventory

($7,951+$8,178) / 2= $8,064.5

Cost of goods / average inventory = Inventory Turnover

$78,138 / $8,064.5 = 9.6

365 days/ inventory turnover = Average days to sell inventory 365 / 9.6 = 38

An average of 38 days to sell inventory

Whole Foods Market

(Beginning Inventory + ending inventory) / 2 = average inventory

(414 + 441) / 2 = $427.5

Cost of goods / average inventory = Inventory Turnover

$9,150 / $427.5 = 21.4

365 days/ inventory turnover = Average days to sell inventory

365 / 21.4 = 17

An average of 17 days to sell inventory

3. Debt to assets ratio.

The Kroger Company

Total Liabilities / Total assets = Debt to assets

$23,886 / $29,281 * 100 = 81.57 %

Whole Foods Market

$1,931 / $5,744 * 100 = 33.6%

4. Return on investment. (Use average assets and use earnings from continuing operations rather than net earnings.)

Total assets (beginning of the year) + Total assets (ending of year) / 2 = average assets

Continuing operations/ average assets = ROI

The Kroger Company

$29,281 + $30,556 / 2 = $29,918.5

$2,282 / $29,918.5 * 100 = 7.62%

Whole Foods Market

$5,538 + $5,744 / 2 = $5,641

$946 / $5,641 * 100 = 16.77%

Please see my contribution for Part A 5-8 below. As per Daniels email we are awaiting to hear from Professor Brown in regards to if we need to include a peer-reviewed reference, depending on Professor Browns response I will add a reference if necessary.

A5.) The gross margin percentage for the Kroger Company is 20.57%, on the other hand the gross margin percentage for Whole Foods Market, Inc. is 35.54%. The procedure followed to get this information was dividing the gross profit by the revenues.

Kroger Company: $20,237/ $98,375

Whole Foods: $5,044/ $14,194

A6.) The asset turnover for the Kroger Company by using the average assets is 5.12%, and the asset turnover for Whole Foods Market, Inc. is 10.26%. The formula used to conclude this information was to divide the net earnings by the average of total assets.

Kroger Company: $1,531/ $29,918.50

Whole Foods: $579/ $5,641

A7.) The net margin, by using the earnings from continuing operations for the Kroger Company is 1.5%, where the net margin for Whole Foods Market, Inc is 1.63%. In order to get this calculation one must take the earnings from continuing operations before income taxes and divide that number by the net earnings.

Kroger Company: $2,282/ $1,531

Whole Foods: $946/$579

A8.) The plant assets to long-term debt ratio for Kroger company is 4.37%, where the plant assets to long-term debt ratio for Whole Foods Market, Inc. is 4.34%. In order to figure out this ratio one must take the property and equipment, net of depreciation and dive that by the total long-term liabilities

Kroger Company: $16,893/ $13,181

Whole Foods: $2,923/ $674