Financial Report

The Financial Report

Part 2

Whole Food is a competitive and outstanding company in supermarket companies. We collected some data from Whole Food and one of its competitive, Fresh Market to analyze profitability and liquidity of two companies . Both Whole Food and Fresh Market aim at providing high-quality food to consumers. Although company size of Fresh Market is considered related small to Whole Food, Fresh Market is still a potential competitor.   In addition, we compared the difference if Whole Food IFRS rather than GAAP. We also give our personal ideas and suggestions about investment for the future of Whole Food.

As we consider the profitability of a company, return on assets is one of most important and reliable data. Whole Food has nearly 10% in return on assets, which is relatively high. So does earning per share. Whole Food is famous for providing high quality and organic food, and the prices of its food are relatively high, which I believe is one of reasons why it makes high profit. The revenue growth rates in recent three years are more than 10%. what’s more, net income growth rates of Whole Food almost are all more than 20%, and reached 60% in 2010. Comparing with one of its biggest competitive company, Fresh Market, although Fresh Market has higher data in return on asset and return on equity, Whole Food is a bigger company than Fresh Market and can’t work efficiently like a small company.

Essentially, Depreciation, amortization and change in current assets and liabilities are the most essential effects to contribute to difference between cash flow from operating activities and net income. the net cash provided by operating activities 755, 920 and 1009 for 2011, 2012 and 2013, and net income of Whole Food is 343, 466 and 551. Net income always will be a smaller amount than cash flow from operating activities. Depreciation and  amortization is non-cash operating activity, and it is not counted into net income. As for Fresh Market, its net...