The following financial information relates The Kroger Company and Whole Foods Market Inc., for fiscal year 20X1 and 20X2. Please do a ratio analysis and address the following questions from part (a) to (e ).
THE KROGER COMPANY
Selected Financial Information
(amounts in millions, except per share amounts)
	20X2	20X1
Total current assets	10,340	9,892
Merchandise inventory	9,143	8,712
Property and equipment, net of depreciation	21,016	19,619
Total assets	36,505	33,897
Total current liabilities	12,860	12,971
Total long-term liabilities	16,935	14,128
Total liabilities	29,795	27,099
Total shareholders equity	6,710	6,798
Revenue	115,337	109,830
Cost of goods sold	89,502	85,496
Gross profit	23,521	22,291
Operating income	3,436	3,576
Earnings from continuing operations before income tax expense	2,914	3,094
Income tax expense	957	1,045
Net earnings	1,957	2,049
Basic earnings per share	$2.08	$2.09
WHOLE FOODS MARKET, INC.
Selected Financial Information
(amounts in millions except per share data)
	20X2	20X1
Total current assets	2,145	1,975
Merchandise inventory	471	517
Property and equipment, net of depreciation	3,514	3,442
Total assets	6,676	6,341
Total current liabilities	1,355	1,341
Total long-term liabilities	1,891	1,776
Total liabilities	3,246	3,117
Total stockholders equity	3,430	3,224
Revenues	16,030	15,724
Cost of goods sold	10,633	10,313
Gross profit	5,397	5,411
Operating income	410	816
Earnings from continuing operations before income taxes	417	827
Income tax expense	172	320
Net earnings	245	507
Basic earnings per share	$1.49	$1.55
a. Compute the following ratios for the companies 20X2 fiscal years:
(1) Current ratio.
The Kroger Company =
Whole Foods Market, Inc. =
(2) Average days to sell inventory. (Use average inventory.)
The Kroger Company =
Whole Foods Market, Inc. =
(3) Debt-to-assets ratio.
The Kroger Company =
Whole Foods Market, Inc. =
(4) Return on investment. (Use average assets and use earnings from continuing operations rather than net earnings.)
The Kroger Company =
Whole Foods Market, Inc. =
(5) Gross margin percentage.
The Kroger Company =
Whole Foods Market, Inc. =
(6) Asset turnover. (Use average assets.)
The Kroger Company =
Whole Foods Market, Inc. =
(7) Return on sales. (Use earnings from continuing operations rather than net earnings.)
The Kroger Company =
Whole Foods Market, Inc. =
(8) Plant assets to long-term debt ratio.
The Kroger Company =
Whole Foods Market, Inc. =
b. Which company appears to be more profitable? Explain your answer and identify ALL possible ratio(s) from Part a you used to reach your conclusion.
e. Which company appears to be the more efficient at using its assets? Explain your answer and identify ALL possible ratio(s) from Part a you used to reach your conclusion.