Compute the net profit margin and total asset turnover

Reference no: EM131221411

Whole Foods Market, Inc. included these statements in its 2010 annual report.*

WHOLE FOODS MARKET, INC. Consolidated Balance Sheets (in thousands) September 26, 2010 and September 27, 2009
Assets	2010	2009
Current Assets:	$ 131,996	$ 430,130
Cash and cash equivalents	$ 131,996	$ 430,130
Short-term investments - available-for-sale securities	329,738	-
Restricted cash	86,802	71,023
Restricted cash	133,346	104,730
Merchandise inventories	$ 323,487	$ 310,602
Prepaid expenses and other current assets	54,686	51,137
Deferred income taxes	101,464	87,757
Total current assets	1,161,519	1,055,380
"Property and equipment, net of accumulated depreciation and amortization	1,886,130	1,897,853
Long-term investments - available-for-sale securities	96,146	-
Goodwill	665,224	658,254
Intangible assets, net of accumulated amortization	69,064	73,035
Deferred income taxes	99,156	91,000
Other assets	9,301	7,866
Total assets	$3,986,540	$3,783,388
Liabilities and Shareholders Equity
Current Liabilities:
Current installments of long-term debt and capital lease obligations	$ 410	$ 389
Accounts payable	213,212	189,597
Accrued payroll, bonus and other benefits due team members	244,427	207,983
Dividends payable		8,217
Other current liabilities	289,823	277,838
Total current liabilities	747,872	684,024
Long-term debt and capital lease obligations, less current installments	508,288	738,848
Deferred lease liabilities	294,291	250,326
Other long-term liabilities	62,831	69,262
Total liabilities	1,613,282	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		413,052
Shareholders' equity:
Common stock, no par value, 300,000 shares authorized; 172,033 and 140,542 shares issued and outstanding at 2010 and 2009, respectively	1,773,897	1,283,028
Accumulated other comprehensive income (loss)	791	(13,367)
Retained earnings	598,570	358,215
Total shareholders' equity	2,373,258	1,627,876
Commitments and contingencies
Total liabilities and shareholders' equity	$3,986,540	$3,783,388

• "Property and equipment include construction in progress and equipment not yet in service (2010 - $120,845; 2009 - $ 130,068)

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
	2010	2009	2008
Sales	$9,005,794	$8,031,620	$7,953,912
Cost of goods sold and occupancy costs	5,870,393	5,277,310	5,247,207
Gross profit	3,135,401	2,754,310	2,706,705
Direct store expenses	2,375,716	2,145,809	2,107,940
General and administrative expenses	272,449	243,749	270,428
Pm-opening expenses	38,044	49,218	55,554
Relocation, store closure and lease termination costs	11,217	31,185	36,545
Operating income	437,975	284,349	236,238
Interest expense	(33,048)	(36,856)	(36,416)
Investment and other income	$ 6,854	$ 3,449	$ 6,697
Income before income taxes	411,781	250,942	206,519
Provision for income taxes	165,948	104,138	91,995
Net income	245,833	146,804	114,524
Preferred stock dividends	5,478	28,050
Income available to common shareholders	$ 240,355	$ 118,754	$ 114,524
Basic earnings per share	$ 1.45	$ 0.85	$ 0.82
Weighted average shares outstanding	166,244	140,414	139,886
Diluted earnings per share	$ 1.43	$ 0.85	$ 0.82
Weighted average shares outstanding, diluted basis	171,710	140,414	140,011
Dividends declared per common share			$ 0.60

Required

a. Compute the following for 2010 and 2009:

1. Net profit margin
2. Total asset turnover (ume year-end! assets)
3. Return on assets (use year-end assets)
4. Operating income margin
5. Return on operating assets (ume yearend assets)
6. Saks to fixed assets (ume year-end fixed assets)
7. Return on investment (use year-end balance sheet accounts)
8. Return on total equiv.), (use year-end equity)
9. Gross profit margin

b. Comment on the trends in (a).

Reference no: EM131221411

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