Whole Foods Market Finance Analysis
Whole Foods Market Financial Analysis
Whole Foods market generated $8.0 billion in sales in fiscal 2009, an increase of 1.0% over the previous years. Yet in fiscal 2009 same-store sales were down 4.3% over the previous years. Operating income for Whole Foods was $284.3 million in fiscal 2009, up to 20.4% over the previous year. This improvement was largely due to stringent cost-containment measures that Whole Foods put into place in the face of the recession economy.
The ratio comparison in table in the appendix suggests that Whole Foods Market inc. is in good shape financially, healthy company. Whole Foods market is liquid company; it has high liquidity- strong cash flow to cover its debts and future projects. Our analysis of Whole Foods Market ratios indicates that the firm’s current financial position is outstanding compared with the industry norm. Thus, after examining 3 years and overall company’s history, the company is in the worse financial position in 2008 and 2009 than it was in previous years. This is caused by recent economic conditions and Whole Foods high demographic standards and target market. But company managed its marketing strategies and financial operations to get back on track and its revenues picked up again in 2010. Overall, company managed well through recession and its prospects of growth are high. By examining Whole Foods market’s history, we can see significant, successful fast growth and superior financial results and management.
Based on our findings, we can state with complete confidence that Whole Foods market is a superstar at managing its income statement, keeping its costs of goods and operating expenses extremely low relative to its sales (as indicated by its high operating profit margin). In terms of managing assets, the firm has much less inventory per dollar of sales than competing firms, which is good.
Going Forward
Overall, Whole Foods has relatively clean financial statements. The company received unqualified audit
Whole Foods market generated $8.0 billion in sales in fiscal 2009, an increase of 1.0% over the previous years. Yet in fiscal 2009 same-store sales were down 4.3% over the previous years. Operating income for Whole Foods was $284.3 million in fiscal 2009, up to 20.4% over the previous year. This improvement was largely due to stringent cost-containment measures that Whole Foods put into place in the face of the recession economy.
The ratio comparison in table in the appendix suggests that Whole Foods Market inc. is in good shape financially, healthy company. Whole Foods market is liquid company; it has high liquidity- strong cash flow to cover its debts and future projects. Our analysis of Whole Foods Market ratios indicates that the firm’s current financial position is outstanding compared with the industry norm. Thus, after examining 3 years and overall company’s history, the company is in the worse financial position in 2008 and 2009 than it was in previous years. This is caused by recent economic conditions and Whole Foods high demographic standards and target market. But company managed its marketing strategies and financial operations to get back on track and its revenues picked up again in 2010. Overall, company managed well through recession and its prospects of growth are high. By examining Whole Foods market’s history, we can see significant, successful fast growth and superior financial results and management.
Based on our findings, we can state with complete confidence that Whole Foods market is a superstar at managing its income statement, keeping its costs of goods and operating expenses extremely low relative to its sales (as indicated by its high operating profit margin). In terms of managing assets, the firm has much less inventory per dollar of sales than competing firms, which is good.
Going Forward
Overall, Whole Foods has relatively clean financial statements. The company received unqualified audit