Purchase Solution

Kroger Company Analysis

Not what you're looking for?

Ask Custom Question

Please do the following points. Attached is the 10K.

1. Decompose ROE using the DuPont formula. Please include a trend analysis for the two most recent fiscal years. What does the DuPont say about changes in ROE over time?

2. Calculate the following for the two most recent fiscal years.

A. Net Operating Profit after Tax (NOPAT).
B. Net Operating Working Capital (NOWC)
C. Total Operating Capital
D. Free Cash Flow (FCF)
E. Return on Investment Capital (ROIC)
F. Dividend Payout Rates.

Purchase this Solution

Solution Summary

This solution provides an in depth analysis of Kroger Company.

Solution Preview

Du Pont analysis is an extremely useful way of seeing how the various ratios determined a firm's profitability.

The extended Du Pont equation is particularly useful:
ROE = Profit Margin x Total Assets Turnover x Equity Multiplier

= Net Income / Sales x Sales / Total Assets x Total Assets / Common Equity

Hence this model can be used to gauge following about the company:

1. Asset utilization : as its utilization of the assets with the help of Asset turnover ratio.
2. Solvency position: as its nature of financial risk with the help of Equity multiplier.
3. Profit margin : as its position with respect to efficiency of the ...

Purchase this Solution


Free BrainMass Quizzes
Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations