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Wf Executive Summary

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a. Income statement: • Sales revenue increased 61% to 12,9 billions in 2013, compared to 2009. It was not mentioned in the financial statement but in exhibit 3, the company’s sales rose sharply from 2000 to 2008 and expanded slowly, even though it had negative growth in 2009 (identical-store sales equals -4.3%) because of the Great Recession when U.S economy slowdown that began in 2007 and hit full force in 2008-2009, WFM had to cut down the size of stores significantly. • Gross profit margin from 2009 to 2013 (35.8%, 35.5%, 34.99%, 34.8%, 34.2%) shows the proportion of money left over from revenues after accounting for the cost of goods sold (COGS). It illustrates that WFM is using efficiently the economic scale and scope. • Operating profit margin (calculated by dividing operating income to sales) (6.8%,6.4%,5.4%,4.9%,3.5%) doubles approximately in fiscal year 2013 of 6.8% paralleled with 2009 of 3.5%. This ratio indicates how much money that company made is left over after paying for costs of production. It means that WFM operates more and more effectively than ever before. • Interest expense equals zero in the last two years, whereas it was negative in 2011, 2010 and 2009, proving that the company did not borrow funds from others. In …show more content…

From the balance sheet, we can identify that the solvency of WF rose continuously from 2009 to 2012. In 2009, the net working capital just stopped at $371 million then in 2010 and 2011, there was a slight increase with the following value $414 million and $574 million. Especially in 2012, net working capital reached the highest compared to the previous years ($1126 million). The rise of net working capital also came along with the increase of total asset. However in 2013, net working capital had the downward trend to $829 million, meanwhile total asset still increased from $5294 million to $5538 million. It shows that company may use money for

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Working Capital increase by 25.2%. This change is favorable because positive working capital shows that the company has enough funds to meet its short-term liabilities. Current Ratio increase by 34.8%. This change is favorable because a high current ratio is very beneficial for them to determine whether the company has a sufficient level of liquidity to pay liabilities.

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