The following information relates to The Kroger Company for its 2015 and 2014 fiscal years, and Whole Foods Market, Inc. for its 2014 and 2013 fiscal years.

THE KROGER COMPANY Selected Financial Information (amounts in millions, except per share amounts)
	January 31, 2015	February 1, 2014
Total current assets	$ 8,911	$ 8,830
Merchandise inventory	8,178	7,951
Property and equipment, net of depreciation	17,912	16,893
Total assets	30,556	29,281
Total current liabilities	11,403	10,705
Total long-term liabilities	13,711	13,181
Total liabilities	25,114	23,886
Total shareholders equity	5,442	5,395
Revenues	108,465	98,375
Cost of goods sold	85,512	78,138
Gross profit	22,953	20,237
Operating income	3,137	2,725
Earnings from continuing operations before income tax expense	2,649	2,282
Income tax expense	902	751
Net earnings	1,747	1,531
Basic earnings per share	$ 1.75	$ 1.47

WHOLE FOODS MARKET, INC. Selected Financial Information (amounts in millions except per share data)
	September 28, 2014	September 29, 2013
Total current assets	$ 1,756	$ 1,980
Merchandise inventory	441	414
Property and equipment, net of depreciation	2,923	2,428
Total assets	5,744	5,538
Total current liabilities	1,257	1,088
Total long-term liabilities	674	572
Total liabilities	1,931	1,660
Total stockholders equity	3,813	3,878
Revenues	14,194	12,917
Cost of goods sold	9,150	8,288
Gross profit	5,044	4,629
Operating income	934	883
Earnings from continuing operations before income taxes	946	894
Income tax expense	367	343
Net earnings	579	551
Basic earnings per share	$ 1.57	$ 1.48

Required

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

1. Current ratio.

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

3. Debt to assets ratio.

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

5. Gross margin percentage.

6. Asset turnover. (Use average assets.)

7. Net margin. (Use earnings from continuing operations rather than net earnings.)

8. Plant assets to long-term debt ratio.

2. Which company appears to be more profitable? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion.

3. Which company appears to have the higher level of financial risk? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion.

4. Which company appears to be charging higher prices for its goods? Explain your answer and identify which ratio(s) from Requirement a you used to reach your conclusion.

5. 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.