compute financial statement ratios based on the kroger co kr

/in /by

Group Company Project – Part II (60 points):

The purpose of the second part of the comprehensive project is to compute financial statement ratios. Based on the company(The Kroger Co (KR)) , complete the following:

  1. Based on formulas in your textbook or other sources for financial ratios, compute the following ratios for two years. You may use Excel to compute your ratios.
    1. Debt ratio
    2. Gross profit margin
    3. Free cash flow
    4. Times interest earned
    5. Accounts receivable turnover
    6. Inventory turnover
  2. Prepare a DuPont Analysis of ROE for two years, including computations of
    1. Return on Sales
    2. Asset Turnover
    3. Return on Assets
    4. Financial Leverage
    5. Return on Equity
  1. Briefly evaluate the ratio trends. Indicate on your worksheet whether each ratio is:
    1. stronger / weaker
    2. quicker /slower
    3. more / less liquid
    4. more / less risk
  2. Write a 3-6 page report evaluating trends in all of the above ratios. Discuss whether your company’s profitability, efficiency, liquidity, and solvency are improving or deteriorating. Suggest ways the company can improve the ratios that show problems. The report should be well written with cover page, introduction, body of paper (with appropriate subheadings), conclusion, and reference page. References must be appropriately cited.

    Format: Double-spaced, one-inch margins, using a 12-point Times New Roman font. Use APA throughout.