certified organic 408960
Whole Foods Market, Inc. included these statements in its 2010 annual report.
Required: A: Compute the following for 2010 and 2009:
1. Net profit margin, 2. Total asset turnover (use the year end assets), 3. Return on assets (use year end assets), 4. Operating income margin, 5. Return on operating assets (use year end assets), 6. Sales to fixed assets (use year end assets), 7. Return on investment (use year end balance sheet accounts), 8. Return on total equity (use year end equity), 9. Gross profit margin. B: Comment on the trends in (a).
Whole Foods Market, Inc. Consolidated Balance Sheets (in thousands) September 26, 2010 and September 27, 2009:
Assets: Current assets : Cash and cash equivalents (for 2010) $131,996; (for 2009) $430,130; Short term investments avalble for sale securities (for 2010) 329,738, (for 2009) 0; Restricted cash (for 2010) 86,802; (for 2009) 71,023; Accounts receivable (for 2010) 133,346, (for 2009) 104,731; Merchandise inventories (for 2010) 323,487 (for 2009) 310,602; Prepaid expenses and other current assets (for 2010) 54,686, (for 2009) 51,137; Deferred income taxes (for 2010) 101,464, (for 2009) 87,757; Total current assets (for 2010) 1,161,519, (for 2009) 1,055,380; Property and equipment, net of accumulated depreciation and amortization (for 2010) 1,886,130, (for 2009) 1,897,853; Long term investments available for sale securities (for 2010) 96,146, (for 2009) 0; Goodwill (for 2010) 665,224, (for 2009) 658,254; Intangible assets, net of accumulated amortization (for 2010) 69,064, (for 2009) 73,035; Deferred income taxes (for 2010) 99,156, (for 2009) 91,000; Other assets (for 2010) 9,301, (for 2009) 7,866; Total assets (for 2010) 3,986,540, (for 2009) 3,783,388; Liabilites and Shareholders Equity: Current LiabilitesL Current installments of long term debt and capital lease obligations (for 2010) $410; (for 2009) $389; Accounts payable (for 2010) 213,212, (for 2009) 189,597; Accrued payroll, bonus and other benefits due team members (for 2010) 244,427, (for 2009) 207,983; Dividends payable (for 2010) 0, (for 2009) 8,217; Other current liabilities (for 2010) 289,823, (for 2009) 277,838; Total current liabilities (for 2010) 747,872, (for 2009) 684,024; Long term debt and capital lease obligations, less current installments (for 2010) 508,288, (for 2009) 738,848; Deferred lease liabilities (for 2010) 294,291, (for 2009) 250,326; Other long term liabilities (for 2010) 62,831, (for 2009) 69,262; Total liabilities (for 2010) 1,613,282, (for 2009) 1,742,460; Series A redeemable preferred stock, $0.10 par value, 425 shares authorized; zero and 425 shares issued and outstanding at 2010 and 2009, respectively (for 2010) 0, (for 2009) 413,052; Shareholders Equity: Common stock, no par value, 300,000 shares authorized; 172,033 and 140,542 shares issued and outstandng at 2010 and 2009, respectively (for 2010) 1,773,897, (for 2009) 1,283,028; Accumulated other comprehensive income (loss) (for 2010) 791, (for 2009) 13,367; Retained earnings (for 2010) 598,570, (for 2009) 358,215; Total shareholders equity (for 2010) 2,373,258, (for 2009) 3,783,388; Whole Foods Market, Inc. Consolidated Statements of Operations (in thousands, except per share amounts) Fiscal years ended September 26, 2010, September 27, 2009 and September 28, 2008: Sales (for 2010) $9,005,794, (for 2009) $8,031,620, (for 2008) $7,953,912; Cost of goods sold and occupancy costs (for 2010) 5,870,393, (for 2009) 5,277,310, (for 2008) 5,247,207; Gross profit (for 2010) 3,135,401, (for 2009) 2,754,310, (for 2008) 2,706,705; Direct store expenses (for 2010) 2,375,716, (for 2009) 2,145,809, (for 2008) 2,107,940; General and administrative expenses (for 2010) 272,449, (for 2009) 243,749, (for 2008) 270,428; Pre opening expenses (for 2010) 38,044, (for 2009) 49,218, (for 2008) 55,554; Relocation, store closure and lease termination costs (for 2010) 11,217, (for 2009) 31,185, (for 2008) 36,545; Operating income (for 2010) 437,975, (for 2009) 284,349, (for 2008) 236,238; Interest expense (for 2010) 33,048, (for 2009) 36,856, (for 2008) 36,416; Investment and other income (for 2010) 6,854, (for 2009) 3,449, (for 2008) 6,697; income before taxes (for 2010) 411,781, (for 2009) 250,942, ((for 2008) 206,519; Provision for income taxes (for 2010) 165,948, (for 2009) 104,138, (for 2008) 91,995; Net income (for 2010) 245,833, (for 2009) 146,804, (for 2008) 114,524; Preferred stock dividends (for 2010) 5,478, (for 2009) 28,050, (for 2008) 0; Income available to common shareholders (for 2010) 240,355, (for 2009) 118,754, (for 2008) 114,524; Basic earings (for 2010) 1.45, (for 2009) 0.85, (for 2008) 0.82; Weighted average shares outstanding (for 2010) 166.244, (for 2009) 140,414, (for 2008) 139,886; Diluted earnings per share (for 2010) 1.43, (for 2009) 0.85, (for 2008) 0.82; Weighted average shares outstanding diluted basis (for 2010) 171,710, (for 2009) 140,414, (for 2008) 140,011; Dividends declared per common share (for 2010) 0, (for 2009) 0, (for 2008) 0.60.
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