Whole Food Individual Case, Financial Analysis

 Whole Foods Individual Circumstance, Financial Evaluation Essay


This statement is created in order to execute financial examination on Entire Foods Marketplace Inc as well as its competitor Safeway Inc. This in depth survey is both to determine which company is doing fiscally better and just how also the way they are doing comparing them to all their whole market. The proportions in this survey are going to be used to compare WF to its competitior and also to compare it is financial activities to the whole Grocery store sector (SIC: 5411) to see just how Whole Food Inc is performing in regards to the entire industry. It is very important to evaluate a industry’s ratios with all the industry's, because they may seem good or bad when comparing with the business competitors, nevertheless , when comparing these ratios for the industry a different conclusion could be drawn. An additional purpose of this paper should be to show the tendencies and interactions of this company which will allow us to evaluate Whole Foods' weaknesses and strength. With this report, you will come across profitability ratios, liquidity ratios and property utilization percentages of equally companies plus the industry's. Qualifications

Both Safeway and Entire Foods Marketplace are key players in the Grocery stores industry and they are both equally leading the natural organic and natural food discipline. from a Wall Street point of view, the highest profile player in natural / organic food is likely Complete Foods (WFMI). The company's income have elevated 18% a year, on average (Value line). You’re able to send merchandise distinctive line of over you, 500 things includes organically grown. he company possesses about 287 store locations in 37 states and Washington, M. C., as well as five shops in the U. K and Canada. Coming from 2010 through 2013, Entire Foods ideas to open 53 new retailers, including ten relocations(Plunkett research). The original complete foods Market opened in 1980 in Texas with a stuff of 19 just. Safeway Incorporation opened its first store in 1915 in Idaho. Safeway Stores, is one of the largest food suppliers in United states, operating you, 712 stores. The company just lately expanded the O Organics line of certified organic food and drinks to over three hundred exclusive products. Exhibit 1: source Sector ratios: recovered November 4th 2010 from, Reuters. com | | | |Whole foods | | | | | |2005 |2006 |2007 |2008 |2009 |Industry | |ROA |7. 22% |9. 98% |5. 69% |3. 39% |3. 88% |2. 38 | |Profit Margin |2. 90% |3. 63% |2. 77% |1. 44% |1. 83% |1. 8

Exhibit one particular

| | | |Safeway | | | | |2005 |2006 |2007 |2008 |2009 | |ROA |3. 56% |5. 35% |5. 03% |5. 52% |-7. 78% | |Profit Perimeter |1. 46% |2. 17% |2. 10% |2. 19% |-2. 69%

In analyzing the profitability ratios, we see that WF had better income margin than Safeway every year in the last five years, apart from 2008. In 2009, WF's profit perimeter was zero. 3%lower than the industry's typical. In 2008, safeway perform better WF's profit margins 0. 74%. However , in 2009 Safeway a new negative earnings margin because of their net income loss. Looking at the two company's income in 08 and 2009, we can deduce that both equally companies are unable to make high profit margins. WF's (ROA) advises a good success from 2006 to 2007; however , this started to drop in 08 and 2009. WF's (ROA) was 1 ) 5% higher than the average industry ratio. Safeway's ROE portion were lower...

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