The food business operates on very narrow margins. In 2019, Loblaw's operating profit was $2.3 billion, about 4.7 percent of sales. Net earnings were $1.1 billion, for a profit margin of about 2.4 percent (formula 3-1). What is striking about Loblaw in comparison to companies in other industries is the large investment in current assets. In 2019, over $11.3 billion was invested in current assets, with almost half invested in inventory. Current assets were about the same magnitude as capital assets. Like many corporations, Loblaw had built up and was sitting on a cash hoard of $1.1 billion in cash. To finance this position in current assets, Loblaw relied heavily on its suppliers with accounts payable at $5.3 billion. In comparison to shareholders' equity of $11.3 billion, the suppliers of short-term capital also had a significant stake in the firm. Net working capital (current assets less current liabilities) was $2.1 billion, whereas in 2000 it had been a negative $291 million. Loblaw tries to maintain a bal