I'd like you to write a paper about what you learned while doing your ratio analysis.Pleaseuse the material fromyour ratio analyses to cite a few examples of your learning, such as revenues climbed steadily over the three years,or gross margin declined in year 2,and recovered in year 3.If you want to really challenge yourself,you can do a bit of research about what industry standards are and include them in your analysis.The paper should be 2-3pages,double spaced.

Financial ratio analysis of Whole Food markets Annual Income statement ratios Ratio LIQUIDITY RATIOS Current ratio Quick ratio Cash ratio PROFITABLITY RATIOS Gross margin Operating margin Pre-tax margin Profit margin Pre-tax ROE After-tax ROE SOLVENCY RATIOS Total Assets to Total Liabilities Ratio Debt to Equity Ratio Number of Times Interest Earned ACTIVITY RATIOS Inventory turnover ratio working capital turnover ratio Fixed asset turnover OPERATING RATIOS Beverage cost percentage Labor cost percentage Year 2016 Year 2015 Percentage Percentag e Year 2014 Percentage 147 109 64 123 83 41 140 105 68 34 5 5 3 26 16 35 6 6 3 23 16 36 7 7 4 25 15 ratio Current 2.03 0.33 10.58 2.91 0.02 7.79 2.97 0.02 6.14 the 21.40 1.13 5.31 21.20 1.23 5.06 20.28 1.06 4.76 ratios 30 15 27 17 29 16 measure Liquidity ratios a. Current ratio is one of liquidity that a firm ability to repay its maturing short-term obligations. It compares the current assets to the current liabilities. A current ratio that is below a ratio of 1 is not good for the company. Whole food markets stands at above 1 ratio at 1.47, 1.23 and 1.40 in the years 2016, 2015 and 2014 respectively. This means that Whole Food Market is able to meet its obligations without any struggle by using its current assets. b. Cash ratio refers to the measure of a company's ability to meets its maturing current liabilities with the cash and cash equivalents of the company. The company has maintained a consistent cash ratio of 64%, 41% and 68%. This means that the company has insufficient cash to meet its current liabilities. Profitability ratio a. Profit margin Profit margin ratio is useful for a company when analyzing the profit performance of a company. It measures how much the company actually keeps as profits in every sale that the company keeps. Whole food market keeps a good percentage of sales as profits. b. Return on Equity Return on equity measures how much that a company will preserve in its net income for the shareholders. It shows how much the shareholders will get from the money they invested in the company. Whole Food Markets has a good return on assets. The company is actually doing well in performance. Solvency Ratio a. Debt-to-equity This ratio calculates the company's financial leverage. It shows how much of the company's capital structure is used to finance the company's assets. The company has not relied heavily on the use of debts to finance its assets and operations. It shows the company is using equity as the main source of financing. b. Total assets to total liabilities ratio This is the ratio that shows the amount of assets that the company can actually use to repay its creditors in case of an insolvency misfortune. Whole Food markets can actually repay all its liabilities using its assets. It has a ratio that is more than 1. Activity Ratios a. Inventory turnover ratio This ratio shows how fast a company sells its inventory and buys another inventory. The company inventory ratio shows business performance of the company. The company uses at most 25 days to sell and replace its inventory. b. Fixed asset turnover This is a ratio that shows how efficient that the company uses its fixed assets to generate earnings for the company. It shows the company how to utilize its fixed assets. Whole food Markets had a good use of its fixed assets. Operating ratios a. Beverage cost percentage This is the percentage of the costs that the company incurs in the production of beverage commodities. The company of Whole food markets uses relatively low costs in the production of the beverages. b. Labor cost percentage This is the ratio that the company measures the percentage cost of labor to the total cost incurred in the production of goods for sale. This is the cost of labor to the company is a factor that the company must analysis in order to balance the net income and ensure that the workers are all satisfied. References Bull, R. (2008). Financial ratios: How to use financial ratios to maximize value and success for your business. Oxford: CIMA. Real Life Productions. (2006). Finance. England: Teachers TV/UK Dept. of Education. WFM Key Statistics | Whole Foods Market, Inc. Stock - Yahoo Finance. (n.d.). Retrieved from http://finance.yahoo.com/quote/WFM/key-statistics?ltr=1