THE KROGER CO. Selected Financial Information (amounts in millions, except per share amounts) February 1, 2020 Total current assets Merchandise inventory Property and equipment, net of depreciation Total assets Total current liabilities Total long-term liabilities $ 10,890 7,084 February 2, 2019 $ 10,803 6,846 21,871 21,635 45,256 38,118 14,243 14,274 22,440 16,009 Total liabilities 36,683 30,283 Total shareholders' equity 8,573 7,835 Sales 122,286 121,852 Cost of goods sold 95,294 95,103 Gross profit 26,992 26,749 Operating income 2,251 2,614 Earnings from continuing operations before income tax expense 1,981 3,978 Income tax expense 469 900 Net earnings 1,512 3,078 Basic earnings per share $ 2.05 $ 3.80 PUBLIX SUPER MARKETS, INC. Selected Financial Information (amounts in millions except per share data) Total current assets Merchandise inventory Property and equipment, net of depreciation Total assets Total current liabilities Total long-term liabilities Total liabilities Total stockholders' equity Sales Cost of goods sold Gross profit Operating income Earnings from continuing operations before income taxes Income tax expense Net earnings Basic earnings per share December 28, 2019 December 29, 2018 $ 3,928 $ 3,814 1,913 1,849 9,185 8,637 24,507 18,983 3,701 3,010 3,905 978 7,606 3,988 16,901 14,995 38,116 36,094 27,740 26,311 10,376 9,783 2,889 2,744 3,786 2,921 781 540 3,005 2,381 $ 4.21 $ 3.28

a. Compute the following ratios for the companies’ most recent fiscal years: [Note – some
amounts are different from the printed text version]. EXCEL MUST BE USED FOR
CALCULATIONS USING THE EXCEL TEMPLATE PROVIDED IN CANVAS. IT IS
IMPORTANT THAT I BE ABLE TO SEE YOUR WORK.
(1) Current ratio.
(2) Average days to sell inventory. (Use average inventory.)
(3) Debt to assets ratio.
(4) Return on investment. (Use average assets and use “earnings from continuing operations”
rather than “net earnings.”)
(5) Gross margin percentage.
(6) Asset turnover. (Use average assets.)
(7) Net margin. (Use “earnings from continuing operations” rather than “net earnings.”)
(8) Plant assets to long-term debt ratio.
b. Which company appears to be more profitable? Explain your answer and identify which ratio(s)
from Requirement a you used to reach your conclusion.
c. Which company appears to have the higher level of financial risk? Explain your answer and
identify which ratio(s) from Requirement a you used to reach your conclusion.
d. Which company appears to be charging higher prices for its goods? Explain your answer and
identify which ratio(s) from Requirement a you used to reach your conclusion.
e. Which company appears to be the more efficient at using its assets? Explain your answer and
identify which ratio(s) from Requirement a you used to reach your conclusion.