Whole Foods Market Financial Findings

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Whole foods Market |
Financial Findings|

Table of contents:
Summary of Operations…………………………………………………………….3-4

Financial position…………………………………………………………………….4-6

Financial ratios……………………………………………………………………...6-10

Historical view of the financial performance…………………………………....11-13
Industry comparison……………………………………………………………….14-15

References……………………………………………………………………………..16

Appendix……………………………………………………………………………16-28 (Investopedia) (Investopedia) (Yahoo Finance)

II.Summary of Operations ($000)
A.Net Sales:
SEP 2009| SEP 2010| SEP 2011|
8,031,620| 9,005,794| 10,107,787|

B.Gross Margin:
SEP 2009| SEP 2010| SEP 2011|
34.30%| 34.83%| 34.99%|

C.Operating Margin
SEP 2009| SEP 2010| SEP 2011|
3.6%| 4.9%| 5.5%|

D.Income before Taxes
SEP 2009| SEP 2010| SEP 2011|
250,942| 441,781| 551,712|

E.Net Income
SEP 2009| SEP 2010| SEP 2011|
146,804| 245,833| 342,612|

F.Summary of Operations Data Assessment/Interpretation

Overall the financial data presented above indicates that the performance of Whole Foods Market constantly improved since 2009. First of all, between the years 2009 to 2011, Whole Foods Market’s sales increased by 20%. Regardless of the high increase in sales during the two three financial years (2009-2011) Whole Foods Market profit margin, stayed almost the same with a slight improvement of 0.69%. Nevertheless, WFM profit margin is 27% greater than the industry average (25.47%). Which means that WFM had keeps a decent profit on every dollar of sales (34.99% as of Sep 2011). In addition to that, the significant increase in WFM’s net income (57% increase), strengthen the assessment that WFM performs well and enjoys superior financial health

III.Financial Position ($000)

A.Working Capital= Current assets- Current liabilities

SEP 2009| SEP 2010| SEP 2011|
$371,356| $413,647| $573,783|

B.Net Property, Plant & Equipment
SEP 2009| SEP 2010| SEP 2011|
$1,897,853| $1,886,130| $1,997,212|

C.Total Assets
SEP 2009| SEP 2010| SEP 2011|
$3,783,388| $3,986,540| $4,292,075|

D.Long Term Assets= Total Assets-Current Assets
SEP 2009| SEP 2010| SEP 2011|
$2,728,008 | $2,825,021| $2,838,931|

E.Stockholders’ Equity
SEP 2009| SEP 2010| SEP 2011|
$1,627,876 | $2,373,258| $2,991,305|

F.Financial Position Data Assessment/Interpretation Summary

An examination of the above financial data reveals that WFM is in good financial situation. During the years 2009 and 2011 WFM succeeded to improve all the ratios above, which indicate on a healthy financial position. WFM short financial health increased by 35%, this can be determined by looking at WFM working Capital ratio, which measures how much in liquid assets a company has available to pay off its short-term liabilities. In general, companies that have a lot of working capital will be more successful since they can expand and improve their operations. In addition to that when looking at the stockholder’s equity it is possible to see an increased of $1,363,429 in two years. The stockholders’ equity is often refers to the book value of the company and its compounded from two sources: money received from investors and retained earning. The retained earning of WFM decreased over the years 2009-2011. In fact, in 2011 the retained earning reached its lowest point (358,215 in comparison to 870,497). This indicates that the company does not keep a significant amount of its earning inside the company. The significant increase in stockholders’ equity and the decrease in retained earning tell us that WFM looks relatively attractive in the eyes of investors.

IV. Financial Ratios

A.Liquidity
Current Ratio= Current Assets/Current liabilities
SEP 2009| SEP 2010| SEP 2011|
1.54289908| 1.553098659| 1.65249994|

The current ratio measures the extent to which a firm can meet its short-term obligations. A...
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