The following table presents ROA calculations for three companies in the retail grocery industry using earnings before interest (EBI) and balance sheet data for each company. The Kroger Company operates more than 2,600 supermarkets and multi-department stores. Publix Super Markets operates about 1,100 supermarkets in the Southeastern United States. Weis Markets operates 163 retail food stores in Pennsylvania and surrounding states.

Required:
1. Which company has shown the strongest sales growth over the past three years?
2. Which company was the most profitable in its most recent fiscal year? What was the source of that superior profitability-a profit margin advantage or better turnover?

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The Kroger Co. Year Ending 01/28/12 02/02/1302/01/14 01/31/15 Sales (in millions of dollars) Profit margin (EBI/sales) Asset turnover (Sales/Average assets) ROA Margin x Asset turnover $90,374 0.95% 3.85 3.65% $96,619 1.85% 3.92 7.24% $98,375 1.83% 3.36 6. 14% $108,465 1.88% 3.55 6.68% Publix Super Markets Year Ending 12/31/11 12/29/12 12/28/13 12/27/14 Sales (in millions of dollars) Profit margin (EBI/sales) Asset turnover (Sales/Average assets) ROA Margin x Asset turnover $26,967 5.53% 2.39 13.24% $27,485 5.65% 2.24 12.64% $28,917 5.72% 2.13 12.21% $30,560 5.68% 2.03 1 1.50% Wels Markets, Inc Year Ending 12/31/11 12/29/12 2/28/13 12/27/14 $2,701 3,05% 2.48 7.57% $2,777 1.99% Sales (in millions of dollars) Profit margin (EB/sales) Asset turnover (Sales/Average assets) ROA- Margin x Asset turnover $2,753 275% 2.67 7.35% $2,693 2.65% 2.34 6.25% 2.33 4.63%