Financial analysis – Whole Foods Whole foods over the years have been a very financially stable company. It has been a company who has shown great financial management even during the hard times of the 2009 recession. There clean financial approach can be summarized best by what Ernst and young LLP (their Auditors) state about them. They refer to whole foods as a “company that kept good internal control of financial reporting, Whole food gave forth all necessary information as designated by US auditing standards and remains in a good financial standing” Before highlighting the financial aspects of whole foods, it is important to take quick look at the economic and industry factors that could play a wide role in affecting whole foods financials. Food retailing being a large and intensely competitive industry, it is extremely difficult to keep company performance stable, the dynamic nature of the market has made companies to lead a more proactive business strategy, one that whole foods have definitely mastered over the last decade. With competitors like Walmart and target, whole foods have differentiated themselves as a high quality food producers with a more natural aspect to its product line up. After conducting a basic 10 year financial analysis of the company, it has become evident that even with a highly competitive market structure they are able to improve on their performance. Ranging from 2004 to 2013 financial information, the company has shown a significant increase in their sales revenue roughly $3865 million sales in 2004 to almost four time that valuing $12970 million in 2013, which was an “increase of 10.4% over the 53 week prior year” The company’s growth strategy has been to diversify its product market and make them... ... middle of paper ... ... this. Since 2009 the company has showed to increase its current ratio where it recorded an all-time high of 2.15 assets per 1 current liability. This was a significant point in the company, the high ratio showed the companies conservative strategy where majority of the cash was held back to fund acquisitions and fund its growth. The company remains to have a relatively high current ratio intact, as their main goal right now is to acquire and build new stores and make the whole foods brand more accessible all around the world. Taking all this information into consideration, it is clear that whole foods inc. has a well standing financial background. The high profit margins and increasing sales revenue and net income have shown a positive future for the company. The stock analysis has also shown the company’s growth and developments and are both in a good standing.
The food market business is usually a difficult one, but online retailer Amazon's proceeding to purchase high-end chain Whole Foods changed the landscape. The new corporation is currently reducing prices, as well as Amazon is managing to reduce costs by taking its online expertise
...s are doing well and over the many years have gone up. The company has not lawsuits currently pending which is good. The company as a whole seems to be growing even when the market is down.
Whole Foods Market allows each market to supply products that are standardized, and also supply products based on local buyer needs, as well as the culture of the area; therefore their business strategy is transnational (Thompson, 2016, p. 192). Whole Foods Market varies their products based on location, focusing on local products and any unique products to promote a neighborhood market feel for their customers. The company strategically chooses its locations, placing them in educated areas, and then focuses on products to sustain a competitive advantage.
They want the quality of their products to remain high so that the loyalty of their customers remains strong and growing. The company continues to grow based on their constant innovation and distinction of their products in today’s market.
Analyzing Wal-Mart's annual report provides a positive outlook on Wal-Mart's financial health. Given the specific ratios and its comparison to other companies in the same industry, Wal-Mart is leading and more than likely continue its dominance. Though Wal-Mart did not lead in all numbers, its leadership and strong presence of the market cements the ongoing success. The review of the current ratio, quick ratio, inventory turnover ratio, debt ratio, net profit margin ratio, ROI, ROE, and P/E ratio all indicate an upbeat future for the company. The current ratio, which is defined as current assets divided by current liabilities, is a measure of how much liabilities a company has compared to its assets. Wal-Mart in the year of 2007 had a current ratio of .90, and as of January 2008 it had a current ratio of .81. The quick ratio, which is defined as current assets minus inventory divided by current liabilities, is a measure of a company's ability pay short term obligations. Wal-Mart in the year of 2007 had a quick ratio of .25, and as of January 2008 it had a ratio of .21. Both the current ratio and quick ratio are a measure of liquidity. Wal-Mart is not as liquid as its competitors such as Costco or Family Dollar Stores Inc. I believe the reason why Wal-Mart is not too liquid is because they are heavily investing their profits for expansion and growth. Management claims in their financial report that holding their liquid reserves in other currencies have helped Wal-Mart hedge against inflationary pressures of the US dollar. The next ratio to look at is the inventory ratio which is defined as the cost of sales divided by average inventory. In the year of 2007, Wal-Mart’s inventory ratio was 7.68, and as of January 2008 it was 7.96. Wal-Mart has a lot of sales therefore it doesn’t have too much a problem of holding too much inventory. Its competitors have similar ratios though they don’t have as much sales as Wal-Mart. Wal-Mart’s ability to sell at lower prices for same quality, gives them the edge against its competition. As of the year 2007, Wal-Mart had a debt ratio of .58, and as of January 2008, it had a debt ratio of .59. The debt ratio is calculated by dividing the total debt by its total assets. Wal-Mart has a lot more assets than it does debt so Wal-Mart is not overleveraged.
...ious. Stability is another factor that could make Whole Foods an attractive career. They have been consistent in everything they have down and show a dedicated to the communities around them. Not many companies have the same track record and this proves that Whole Foods is in it not only for themselves.
Over the long list of strengths34 in table 5 (Appendix 3) the most crucial for further growth are strong corporate culture, brand and marketing focus with constant revenue increase over the last 7
Founded by S. Truett Cathy in the Atlanta suburb Hapeville, Chick-fil-A is a Southern restaurant by all means as its origin is in the South. But to qualify the eatery as authentically Southern, one has to examine more than just origin or where the founder was from. The late Truett Cathy, founder of Chick-fil-A, said “We should be about more than just selling chicken. We should be a part of our customers’ lives and the communities in which we serve.” This ideal, and those like it, is what illustrates Chick-fil-A’s Southern identity. This particular restaurant presents itself as authentically Southern in how it never compromises family, provides a certain “Southern hospitality” not many other places do, and holds onto Bible Belt values in trying
..., John E., Strickland, A.J. Thompson, Arthur “Whole Foods Market In 2006: Mission, Core Values, and Strategy”, Crafting & Executing Strategy 15th Ed., McGraw-Hill Irwin, 2007
Whole Foods owned $10 million in equity interest. There equity interest is accounted for using the cost method of accounting. Additionally the company had ownership interest in a supplier company equating to approximately $4 million in September 24. Their ownership interest is accounted for using the equity method of accounted.
Whole Foods Market, Inc. is not only well known as a successful organic food-selling grocery store, but also famous as its high quality standards and its great employment practices. In the Whole Foods Case, it talks about how Whole Foods Market became the nation’s largest natural foods retail chain and how it became the fastest growing company in the competitive grocery market (Whole Food Course pack). The company started with a small store and it acquainted many other existing nature foods retailers to enlarge the market. The expansion of Whole Food Market is really remarkable, and the company also led the organic foods from movement to mainstream. Therefore, it’s obvious that with such a great achievement, the company and executive members
Internal environment for Whole Foods Market is developed from strengths and weaknesses of the company from SWOT analysis perspective. Therefore, internal environment is does not solely rely on strengths of the market but also weaknesses that reduce the company’s profitability are included in this analysis. Based on SWOT analysis coupled with Porter’s five forces model, the internal environment of the Whole Foods Market include the following (Berman, 2010, September 21):
has grown into a $49.7 billion corporation by clearly focusing on the goal of enabling commerce around the globe.
Walmart seems to be all over the news due to one of these reasons yet it still remains one of the top corporations in America today.
On the Ansoff matrix below is shown what growth strategies for new and existing products and markets can be used from the company.