Safeway Financial Analysis
Financial Analysis of Safeway
ABSTRACT In today’s economy consumers are concerned about making every dollar count, especially when it comes to purchasing groceries for their families. Although there are many grocery stores available to consumers, each person (or family) tend to gravitate to those that offer savings and products that are reasonably priced. This paper will discuss the financial health of a popular grocery store chain – Safeway. Financial ratios will be used to determine if Safeway is performing well in comparison to one of its competitors or if they need to make some changes to its business practices.
Introduction
In today’s market, it is essential to have at least a minimal understanding of financial information and its impact on us as consumers and investors. Each person is surrounded by financial information each day with his or her own finances. In this paper, I have chosen to do a financial analysis on the company Safeway. It is a grocery store chain I have frequented for many years including during my childhood. I value the quality products and their bonus card program and truly believe you get what you pay for. The company operated 1,694 stores in the Western, Southwestern, Rocky Mountain, Midwestern and Mid-Atlantic regions of the United States and in western Canada (Safeway 2010 Annual Report). The varieties of products are endless and in the past five years, the variety allergy free products have increased. I know this because my daughter has five food allergies and it if challenging to shop at one store and find items that do not include the allergies she has. Safeway, in my opinion, has done an outstanding job of recognizing the need and made significant efforts to make those products available for purchase. With all of this success, I have witnessed, I will take a closer look into their financial statement for 2010 and determine if their success is also in the numbers. The following ratios will be analyzed in an
ABSTRACT In today’s economy consumers are concerned about making every dollar count, especially when it comes to purchasing groceries for their families. Although there are many grocery stores available to consumers, each person (or family) tend to gravitate to those that offer savings and products that are reasonably priced. This paper will discuss the financial health of a popular grocery store chain – Safeway. Financial ratios will be used to determine if Safeway is performing well in comparison to one of its competitors or if they need to make some changes to its business practices.
Introduction
In today’s market, it is essential to have at least a minimal understanding of financial information and its impact on us as consumers and investors. Each person is surrounded by financial information each day with his or her own finances. In this paper, I have chosen to do a financial analysis on the company Safeway. It is a grocery store chain I have frequented for many years including during my childhood. I value the quality products and their bonus card program and truly believe you get what you pay for. The company operated 1,694 stores in the Western, Southwestern, Rocky Mountain, Midwestern and Mid-Atlantic regions of the United States and in western Canada (Safeway 2010 Annual Report). The varieties of products are endless and in the past five years, the variety allergy free products have increased. I know this because my daughter has five food allergies and it if challenging to shop at one store and find items that do not include the allergies she has. Safeway, in my opinion, has done an outstanding job of recognizing the need and made significant efforts to make those products available for purchase. With all of this success, I have witnessed, I will take a closer look into their financial statement for 2010 and determine if their success is also in the numbers. The following ratios will be analyzed in an
References: Safeway http://ohioline.osu.edu/cd-fact/1154.html http://pages.nxtbook.com/nxtbooks/cc/safeway_2010annualreport/src/docs/safeway2010ar.pdf http://phx.corporate-ir.net/phoenix.zhtml?c=64607&p=irol-reportsannual Whole Foods http://www.wholefoodsmarket.com/company/pdfs/ar10.pdf