Analyze the financial strength and trends of the two ompanies. Complete the provided template A...

 

  
 

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Analyze the financial strength and trends of the two ompanies. • Complete the provided template A for BOTH companies. • Write a one-page summary which should include; o Comments on the trends for EACH company with respect to profitability, asset utilization, liquidity and leverage. Comments on the relative _performance of the companies. o BONUS: Both companies do not derive 100% of their business from food retailing, Metro has as a large pharmacy operation, and Empire has a real estate operation. Briefly discuss how this may or may not allow a direct comparison. МЕTRO F2019 F2018 F2017 F2016 F2015 Syr Avg Sales 16,767.5 14,383.4 13,175.3 12,787.9 12,223.8 Profit margin - adjusted (%) 4.4% 4.0% 4.2% 4.6% 4.3% 4.3% ROE - adjusted (%) 12.3% 10.2% 18.7% 21.8% 19.7% 16.5% ROA - adjusted (%) 6.6% 5.3% 9.1% 10.5% 9.7% 8.2% NOTE: round to one decimal place Income Statement) METRO F2019 F2018 Total receivables turnover 27.434 26.73 Inventory turnover (use COGS) 13.691 12.128 Accounts payable turnover 11.579 10.51 МЕTRO F2019 F2018 Current ratio L.112 1.173 Quick ratio 0.513 0.5 d Income Statement) МЕTRO F2019 F2018 Debt to total assets* 0.461 0.482 Times interest earned 10.066 23.947 NOTE: Include current portion of long term debt ALSO - lønore all unusual gains and associate's earnings Part I- 4-Year Profitability Trend Analysis (use Empire pg 90 and Metro pg 3) EMPIRE F2020 F2019 F2018 F2017 F2016 Syr Avg 26,588.2 25,142 24,214.6 23,806.2 24,618.8 Sales Profit margin - adjusted (%) 2.2% 1.6% 1.4% 0.8% 1.7% 1.6% ROE - adjusted (%) 15.2% 10.2% 9.3% 5.2% 11.3% 10.3% ROA - adjusted (%) 4.1% 4.3% 4.0% 2.2% 4.5% 3.8% NOTE: round to one decimal place Part 2- Asset Utilization Analysis for last 2 years (use current Balance Sheet & Inc EMPIRE F2020 F2019 Total receivables turnover 49.67 56.6 Inventory turnover (use COGS) 13.397 13.218 Accounts payable turnover 6.76 7.634 Part 3- Liquidity Analysis for last 2 years (use current Balance Sheet) EMPIRE 20XZ 20XY Current ratio 0.802 0.984 Quick ratio 0.435 0.447 Part 4 Debt Utilization Analysis for last 2 years (use current Balance Sheet and I EMPIRE 20XZ 20XY Debt to total assets* 0.726 0.575 Times interest earned 10.972 7.168 NOTE: Include current portion of long term debt Analyze the financial strength and trends of the two ompanies. • Complete the provided template A for BOTH companies. • Write a one-page summary which should include; o Comments on the trends for EACH company with respect to profitability, asset utilization, liquidity and leverage. Comments on the relative _performance of the companies. o BONUS: Both companies do not derive 100% of their business from food retailing, Metro has as a large pharmacy operation, and Empire has a real estate operation. Briefly discuss how this may or may not allow a direct comparison. МЕTRO F2019 F2018 F2017 F2016 F2015 Syr Avg Sales 16,767.5 14,383.4 13,175.3 12,787.9 12,223.8 Profit margin - adjusted (%) 4.4% 4.0% 4.2% 4.6% 4.3% 4.3% ROE - adjusted (%) 12.3% 10.2% 18.7% 21.8% 19.7% 16.5% ROA - adjusted (%) 6.6% 5.3% 9.1% 10.5% 9.7% 8.2% NOTE: round to one decimal place Income Statement) METRO F2019 F2018 Total receivables turnover 27.434 26.73 Inventory turnover (use COGS) 13.691 12.128 Accounts payable turnover 11.579 10.51 МЕTRO F2019 F2018 Current ratio L.112 1.173 Quick ratio 0.513 0.5 d Income Statement) МЕTRO F2019 F2018 Debt to total assets* 0.461 0.482 Times interest earned 10.066 23.947 NOTE: Include current portion of long term debt ALSO - lønore all unusual gains and associate's earnings Part I- 4-Year Profitability Trend Analysis (use Empire pg 90 and Metro pg 3) EMPIRE F2020 F2019 F2018 F2017 F2016 Syr Avg 26,588.2 25,142 24,214.6 23,806.2 24,618.8 Sales Profit margin - adjusted (%) 2.2% 1.6% 1.4% 0.8% 1.7% 1.6% ROE - adjusted (%) 15.2% 10.2% 9.3% 5.2% 11.3% 10.3% ROA - adjusted (%) 4.1% 4.3% 4.0% 2.2% 4.5% 3.8% NOTE: round to one decimal place Part 2- Asset Utilization Analysis for last 2 years (use current Balance Sheet & Inc EMPIRE F2020 F2019 Total receivables turnover 49.67 56.6 Inventory turnover (use COGS) 13.397 13.218 Accounts payable turnover 6.76 7.634 Part 3- Liquidity Analysis for last 2 years (use current Balance Sheet) EMPIRE 20XZ 20XY Current ratio 0.802 0.984 Quick ratio 0.435 0.447 Part 4 Debt Utilization Analysis for last 2 years (use current Balance Sheet and I EMPIRE 20XZ 20XY Debt to total assets* 0.726 0.575 Times interest earned 10.972 7.168 NOTE: Include current portion of long term debt Analyze the financial strength and trends of the two ompanies. • Complete the provided template A for BOTH companies. • Write a one-page summary which should include; o Comments on the trends for EACH company with respect to profitability, asset utilization, liquidity and leverage. Comments on the relative _performance of the companies. o BONUS: Both companies do not derive 100% of their business from food retailing, Metro has as a large pharmacy operation, and Empire has a real estate operation. Briefly discuss how this may or may not allow a direct comparison. МЕTRO F2019 F2018 F2017 F2016 F2015 Syr Avg Sales 16,767.5 14,383.4 13,175.3 12,787.9 12,223.8 Profit margin - adjusted (%) 4.4% 4.0% 4.2% 4.6% 4.3% 4.3% ROE - adjusted (%) 12.3% 10.2% 18.7% 21.8% 19.7% 16.5% ROA - adjusted (%) 6.6% 5.3% 9.1% 10.5% 9.7% 8.2% NOTE: round to one decimal place Income Statement) METRO F2019 F2018 Total receivables turnover 27.434 26.73 Inventory turnover (use COGS) 13.691 12.128 Accounts payable turnover 11.579 10.51 МЕTRO F2019 F2018 Current ratio L.112 1.173 Quick ratio 0.513 0.5 d Income Statement) МЕTRO F2019 F2018 Debt to total assets* 0.461 0.482 Times interest earned 10.066 23.947 NOTE: Include current portion of long term debt ALSO - lønore all unusual gains and associate's earnings Part I- 4-Year Profitability Trend Analysis (use Empire pg 90 and Metro pg 3) EMPIRE F2020 F2019 F2018 F2017 F2016 Syr Avg 26,588.2 25,142 24,214.6 23,806.2 24,618.8 Sales Profit margin - adjusted (%) 2.2% 1.6% 1.4% 0.8% 1.7% 1.6% ROE - adjusted (%) 15.2% 10.2% 9.3% 5.2% 11.3% 10.3% ROA - adjusted (%) 4.1% 4.3% 4.0% 2.2% 4.5% 3.8% NOTE: round to one decimal place Part 2- Asset Utilization Analysis for last 2 years (use current Balance Sheet & Inc EMPIRE F2020 F2019 Total receivables turnover 49.67 56.6 Inventory turnover (use COGS) 13.397 13.218 Accounts payable turnover 6.76 7.634 Part 3- Liquidity Analysis for last 2 years (use current Balance Sheet) EMPIRE 20XZ 20XY Current ratio 0.802 0.984 Quick ratio 0.435 0.447 Part 4 Debt Utilization Analysis for last 2 years (use current Balance Sheet and I EMPIRE 20XZ 20XY Debt to total assets* 0.726 0.575 Times interest earned 10.972 7.168 NOTE: Include current portion of long term debt Analyze the financial strength and trends of the two ompanies. • Complete the provided template A for BOTH companies. • Write a one-page summary which should include; o Comments on the trends for EACH company with respect to profitability, asset utilization, liquidity and leverage. Comments on the relative _performance of the companies. o BONUS: Both companies do not derive 100% of their business from food retailing, Metro has as a large pharmacy operation, and Empire has a real estate operation. Briefly discuss how this may or may not allow a direct comparison. МЕTRO F2019 F2018 F2017 F2016 F2015 Syr Avg Sales 16,767.5 14,383.4 13,175.3 12,787.9 12,223.8 Profit margin - adjusted (%) 4.4% 4.0% 4.2% 4.6% 4.3% 4.3% ROE - adjusted (%) 12.3% 10.2% 18.7% 21.8% 19.7% 16.5% ROA - adjusted (%) 6.6% 5.3% 9.1% 10.5% 9.7% 8.2% NOTE: round to one decimal place Income Statement) METRO F2019 F2018 Total receivables turnover 27.434 26.73 Inventory turnover (use COGS) 13.691 12.128 Accounts payable turnover 11.579 10.51 МЕTRO F2019 F2018 Current ratio L.112 1.173 Quick ratio 0.513 0.5 d Income Statement) МЕTRO F2019 F2018 Debt to total assets* 0.461 0.482 Times interest earned 10.066 23.947 NOTE: Include current portion of long term debt ALSO - lønore all unusual gains and associate's earnings Part I- 4-Year Profitability Trend Analysis (use Empire pg 90 and Metro pg 3) EMPIRE F2020 F2019 F2018 F2017 F2016 Syr Avg 26,588.2 25,142 24,214.6 23,806.2 24,618.8 Sales Profit margin - adjusted (%) 2.2% 1.6% 1.4% 0.8% 1.7% 1.6% ROE - adjusted (%) 15.2% 10.2% 9.3% 5.2% 11.3% 10.3% ROA - adjusted (%) 4.1% 4.3% 4.0% 2.2% 4.5% 3.8% NOTE: round to one decimal place Part 2- Asset Utilization Analysis for last 2 years (use current Balance Sheet & Inc EMPIRE F2020 F2019 Total receivables turnover 49.67 56.6 Inventory turnover (use COGS) 13.397 13.218 Accounts payable turnover 6.76 7.634 Part 3- Liquidity Analysis for last 2 years (use current Balance Sheet) EMPIRE 20XZ 20XY Current ratio 0.802 0.984 Quick ratio 0.435 0.447 Part 4 Debt Utilization Analysis for last 2 years (use current Balance Sheet and I EMPIRE 20XZ 20XY Debt to total assets* 0.726 0.575 Times interest earned 10.972 7.168 NOTE: Include current portion of long term debt Analyze the financial strength and trends of the two ompanies. • Complete the provided template A for BOTH companies. • Write a one-page summary which should include; o Comments on the trends for EACH company with respect to profitability, asset utilization, liquidity and leverage. Comments on the relative _performance of the companies. o BONUS: Both companies do not derive 100% of their business from food retailing, Metro has as a large pharmacy operation, and Empire has a real estate operation. Briefly discuss how this may or may not allow a direct comparison. МЕTRO F2019 F2018 F2017 F2016 F2015 Syr Avg Sales 16,767.5 14,383.4 13,175.3 12,787.9 12,223.8 Profit margin - adjusted (%) 4.4% 4.0% 4.2% 4.6% 4.3% 4.3% ROE - adjusted (%) 12.3% 10.2% 18.7% 21.8% 19.7% 16.5% ROA - adjusted (%) 6.6% 5.3% 9.1% 10.5% 9.7% 8.2% NOTE: round to one decimal place Income Statement) METRO F2019 F2018 Total receivables turnover 27.434 26.73 Inventory turnover (use COGS) 13.691 12.128 Accounts payable turnover 11.579 10.51 МЕTRO F2019 F2018 Current ratio L.112 1.173 Quick ratio 0.513 0.5 d Income Statement) МЕTRO F2019 F2018 Debt to total assets* 0.461 0.482 Times interest earned 10.066 23.947 NOTE: Include current portion of long term debt ALSO - lønore all unusual gains and associate's earnings Part I- 4-Year Profitability Trend Analysis (use Empire pg 90 and Metro pg 3) EMPIRE F2020 F2019 F2018 F2017 F2016 Syr Avg 26,588.2 25,142 24,214.6 23,806.2 24,618.8 Sales Profit margin - adjusted (%) 2.2% 1.6% 1.4% 0.8% 1.7% 1.6% ROE - adjusted (%) 15.2% 10.2% 9.3% 5.2% 11.3% 10.3% ROA - adjusted (%) 4.1% 4.3% 4.0% 2.2% 4.5% 3.8% NOTE: round to one decimal place Part 2- Asset Utilization Analysis for last 2 years (use current Balance Sheet & Inc EMPIRE F2020 F2019 Total receivables turnover 49.67 56.6 Inventory turnover (use COGS) 13.397 13.218 Accounts payable turnover 6.76 7.634 Part 3- Liquidity Analysis for last 2 years (use current Balance Sheet) EMPIRE 20XZ 20XY Current ratio 0.802 0.984 Quick ratio 0.435 0.447 Part 4 Debt Utilization Analysis for last 2 years (use current Balance Sheet and I EMPIRE 20XZ 20XY Debt to total assets* 0.726 0.575 Times interest earned 10.972 7.168 NOTE: Include current portion of long term debt Analyze the financial strength and trends of the two ompanies. • Complete the provided template A for BOTH companies. • Write a one-page summary which should include; o Comments on the trends for EACH company with respect to profitability, asset utilization, liquidity and leverage. Comments on the relative _performance of the companies. o BONUS: Both companies do not derive 100% of their business from food retailing, Metro has as a large pharmacy operation, and Empire has a real estate operation. Briefly discuss how this may or may not allow a direct comparison. МЕTRO F2019 F2018 F2017 F2016 F2015 Syr Avg Sales 16,767.5 14,383.4 13,175.3 12,787.9 12,223.8 Profit margin - adjusted (%) 4.4% 4.0% 4.2% 4.6% 4.3% 4.3% ROE - adjusted (%) 12.3% 10.2% 18.7% 21.8% 19.7% 16.5% ROA - adjusted (%) 6.6% 5.3% 9.1% 10.5% 9.7% 8.2% NOTE: round to one decimal place Income Statement) METRO F2019 F2018 Total receivables turnover 27.434 26.73 Inventory turnover (use COGS) 13.691 12.128 Accounts payable turnover 11.579 10.51 МЕTRO F2019 F2018 Current ratio L.112 1.173 Quick ratio 0.513 0.5 d Income Statement) МЕTRO F2019 F2018 Debt to total assets* 0.461 0.482 Times interest earned 10.066 23.947 NOTE: Include current portion of long term debt ALSO - lønore all unusual gains and associate's earnings Part I- 4-Year Profitability Trend Analysis (use Empire pg 90 and Metro pg 3) EMPIRE F2020 F2019 F2018 F2017 F2016 Syr Avg 26,588.2 25,142 24,214.6 23,806.2 24,618.8 Sales Profit margin - adjusted (%) 2.2% 1.6% 1.4% 0.8% 1.7% 1.6% ROE - adjusted (%) 15.2% 10.2% 9.3% 5.2% 11.3% 10.3% ROA - adjusted (%) 4.1% 4.3% 4.0% 2.2% 4.5% 3.8% NOTE: round to one decimal place Part 2- Asset Utilization Analysis for last 2 years (use current Balance Sheet & Inc EMPIRE F2020 F2019 Total receivables turnover 49.67 56.6 Inventory turnover (use COGS) 13.397 13.218 Accounts payable turnover 6.76 7.634 Part 3- Liquidity Analysis for last 2 years (use current Balance Sheet) EMPIRE 20XZ 20XY Current ratio 0.802 0.984 Quick ratio 0.435 0.447 Part 4 Debt Utilization Analysis for last 2 years (use current Balance Sheet and I EMPIRE 20XZ 20XY Debt to total assets* 0.726 0.575 Times interest earned 10.972 7.168 NOTE: Include current portion of long term debt Analyze the financial strength and trends of the two ompanies. • Complete the provided template A for BOTH companies. • Write a one-page summary which should include; o Comments on the trends for EACH company with respect to profitability, asset utilization, liquidity and leverage. Comments on the relative _performance of the companies. o BONUS: Both companies do not derive 100% of their business from food retailing, Metro has as a large pharmacy operation, and Empire has a real estate operation. Briefly discuss how this may or may not allow a direct comparison. МЕTRO F2019 F2018 F2017 F2016 F2015 Syr Avg Sales 16,767.5 14,383.4 13,175.3 12,787.9 12,223.8 Profit margin - adjusted (%) 4.4% 4.0% 4.2% 4.6% 4.3% 4.3% ROE - adjusted (%) 12.3% 10.2% 18.7% 21.8% 19.7% 16.5% ROA - adjusted (%) 6.6% 5.3% 9.1% 10.5% 9.7% 8.2% NOTE: round to one decimal place Income Statement) METRO F2019 F2018 Total receivables turnover 27.434 26.73 Inventory turnover (use COGS) 13.691 12.128 Accounts payable turnover 11.579 10.51 МЕTRO F2019 F2018 Current ratio L.112 1.173 Quick ratio 0.513 0.5 d Income Statement) МЕTRO F2019 F2018 Debt to total assets* 0.461 0.482 Times interest earned 10.066 23.947 NOTE: Include current portion of long term debt ALSO - lønore all unusual gains and associate's earnings Part I- 4-Year Profitability Trend Analysis (use Empire pg 90 and Metro pg 3) EMPIRE F2020 F2019 F2018 F2017 F2016 Syr Avg 26,588.2 25,142 24,214.6 23,806.2 24,618.8 Sales Profit margin - adjusted (%) 2.2% 1.6% 1.4% 0.8% 1.7% 1.6% ROE - adjusted (%) 15.2% 10.2% 9.3% 5.2% 11.3% 10.3% ROA - adjusted (%) 4.1% 4.3% 4.0% 2.2% 4.5% 3.8% NOTE: round to one decimal place Part 2- Asset Utilization Analysis for last 2 years (use current Balance Sheet & Inc EMPIRE F2020 F2019 Total receivables turnover 49.67 56.6 Inventory turnover (use COGS) 13.397 13.218 Accounts payable turnover 6.76 7.634 Part 3- Liquidity Analysis for last 2 years (use current Balance Sheet) EMPIRE 20XZ 20XY Current ratio 0.802 0.984 Quick ratio 0.435 0.447 Part 4 Debt Utilization Analysis for last 2 years (use current Balance Sheet and I EMPIRE 20XZ 20XY Debt to total assets* 0.726 0.575 Times interest earned 10.972 7.168 NOTE: Include current portion of long term debt Analyze the financial strength and trends of the two ompanies. • Complete the provided template A for BOTH companies. • Write a one-page summary which should include; o Comments on the trends for EACH company with respect to profitability, asset utilization, liquidity and leverage. Comments on the relative _performance of the companies. o BONUS: Both companies do not derive 100% of their business from food retailing, Metro has as a large pharmacy operation, and Empire has a real estate operation. Briefly discuss how this may or may not allow a direct comparison. МЕTRO F2019 F2018 F2017 F2016 F2015 Syr Avg Sales 16,767.5 14,383.4 13,175.3 12,787.9 12,223.8 Profit margin - adjusted (%) 4.4% 4.0% 4.2% 4.6% 4.3% 4.3% ROE - adjusted (%) 12.3% 10.2% 18.7% 21.8% 19.7% 16.5% ROA - adjusted (%) 6.6% 5.3% 9.1% 10.5% 9.7% 8.2% NOTE: round to one decimal place Income Statement) METRO F2019 F2018 Total receivables turnover 27.434 26.73 Inventory turnover (use COGS) 13.691 12.128 Accounts payable turnover 11.579 10.51 МЕTRO F2019 F2018 Current ratio L.112 1.173 Quick ratio 0.513 0.5 d Income Statement) МЕTRO F2019 F2018 Debt to total assets* 0.461 0.482 Times interest earned 10.066 23.947 NOTE: Include current portion of long term debt ALSO - lønore all unusual gains and associate's earnings Part I- 4-Year Profitability Trend Analysis (use Empire pg 90 and Metro pg 3) EMPIRE F2020 F2019 F2018 F2017 F2016 Syr Avg 26,588.2 25,142 24,214.6 23,806.2 24,618.8 Sales Profit margin - adjusted (%) 2.2% 1.6% 1.4% 0.8% 1.7% 1.6% ROE - adjusted (%) 15.2% 10.2% 9.3% 5.2% 11.3% 10.3% ROA - adjusted (%) 4.1% 4.3% 4.0% 2.2% 4.5% 3.8% NOTE: round to one decimal place Part 2- Asset Utilization Analysis for last 2 years (use current Balance Sheet & Inc EMPIRE F2020 F2019 Total receivables turnover 49.67 56.6 Inventory turnover (use COGS) 13.397 13.218 Accounts payable turnover 6.76 7.634 Part 3- Liquidity Analysis for last 2 years (use current Balance Sheet) EMPIRE 20XZ 20XY Current ratio 0.802 0.984 Quick ratio 0.435 0.447 Part 4 Debt Utilization Analysis for last 2 years (use current Balance Sheet and I EMPIRE 20XZ 20XY Debt to total assets* 0.726 0.575 Times interest earned 10.972 7.168 NOTE: Include current portion of long term debt

Answer rating: 100% (QA)

PART 1 Add the 5 years sales and then divide it by 5 to get the average sales FY16 265582 FY17 25142 FY18 242146 FY19 238062 FY20 246188 Total 1243398 ... View the full answer