Safeway Financial Analysis - 1230 Words

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†¦show more content†¦Whole Foods may have higher financial obligations because of them having more organic products than Safeway. Organic food products are usually higher in price because they cost more to produce and manage. Safeway appears to be effectively managing their debt by ensuring timely payments are being made. Coverage: Safeway’s coverage ratio is worse than whole Foods. In order to improve their coverage, the company should review their operating expenses and revenue sources. The operating expenses increase slightly by $100 thousand and the sales increased by $200.7 thousand. Safeway should consult with the marketing and operating managers to increase sales and find efficient ways to eliminate unnecessary operating expenses. Profit to assets: Safeway is slightly worse by appearing to not have as much cash available as Whole Foods. Safeway can improve in this area by ensuring they are pricing their products accordingly. If their products are underpriced, they may be losing revenue although their sales increased in 2010. Safeway should have their sales managers review the products prices to ensure they are being priced effectively. Sales to assets: Safeway is exceling in its earning power over Whole Foods. Safeway is effectively managing it assets in relation to the revenue they are generating. Even though the products may not be priced adequately, the sales managers are performing well and ensuring salesShow MoreRelatedAnalysis Of Safeway Inc. K And Financial Ratios2723 Words   |  11 PagesACC 381 – FINANCIAL ACCOUNTING - LENDECKY Analysis of Safeway Inc. 10-K and Financial Ratios with comparison to Whole Foods Inc. Jonathan Roberts 8/12/2014 Safeway 2013 10-K: http://goo.gl/5k6mBo Safeway 2012 10-K: http://goo.gl/cuhIQt Safeway 2011 10-K: http://goo.gl/c0UGei Whole Foods 2013 10-K: http://goo.gl/QVdb9d Whole Foods 2012 10-K: http://goo.gl/0eZLST Whole Foods 2011 10-K: http://goo.gl/bTTo4n Section I – Summary of Safeway and Grocery Industry at large Safeway Inc. producesRead MoreWhole Foods Individual Case, Financial Analysis1550 Words   |  7 Pagespurpose This report is written in order to perform financial analysis on Whole Foods Market Inc and its competitor Safeway Inc. This in depth report is both to determine which company is doing financially better and how also how they are doing comparing them to their whole industry. The ratios in this report are going to be used to compare WF to its competitior and also to compare its financial performances to the whole Grocery store industry (SIC: 5411) to see how Whole Foods Inc is doing in regardsRead MoreWhole Foods Market Finance Analysis Essay1198 Words   |  5 PagesWhole 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 tableRead MoreWhat Is A Potential Benefit Of Supply Chain Visibility?757 Words   |  4 Pageshas been discovered that companies with supply chain visualization, experience superior financial performance with profit margins ranging from 19 to 73 percent higher compared to other companies. Safeway improved visibility resulted in increased sales and a cost reduction of about a million dollars along the entire supply chain. What was the limitation of Excel-based data analytics at Safeway? Managers at Safeway used spread sheets to gather and compile inventory data and determine how stock outs trendedRead MoreJoint Juice Case Study Essay1085 Words   |  5 PagesThe offer to Joint Juice Inc. by both Albertsons, the nation’s second largest grocery chain, and Safeway, the second largest grocery chain to sell Joint Juice’s products through their nationwide chain stores posed a challenging decision to the company. To sell its products throughout the nation is no doubt a great opportunity for Joint Juice, particularly as a start-up business. However, this offer challenged the company’s original strategy of staying regional for several more years and learningRead MoreFinancial Ratio Analysis Notes Essay662 Words   |  3 Pages3-2 Financial ratio analysis is conducted by managers, equity investors, long-term creditors, and short-term creditors. What is the primary emphasis of each of these groups in evaluating ratios? Managers use financial statements to monitor measurements like debt leverage, costs, sales, assets and liabilities. Financial statements help managers assess achievement of financial goals. Analysis of financial ratio helps equity investors to know whether their investment earnings any return or notRead MoreMuscle Milk1664 Words   |  7 Pagesbodybuilders and partners alike and is already being marketed via sports teams such as the Yahoo cycling team and the Under Armour Football Combines. There are over $200 million in sales within the last accounting period (Article base 2010). It has the financial resources to study the market trends; thereby, plan for the future, train sales personnel and to effectively market the brand. There are several weakness of our product, Brand recognition, even though Cytosport is an established and renown by theRead MoreSafeway Supermarket Consumer Behavior Audit2193 Words   |  9 PagesSafeway Supermarket Consumer behavior audit 1. Introduction Safeway Supermarket is a highly popular chain of supermarket stores, located in the United States and Canada through more than 1,600 stores. The first store was created in 1915 and its business model revolved around the creation of customer value, through the maintenance of a low profitability margin. Today, the same model drives the operations of the Safeway Supermarket chain and ensures the success of the company (Website of SubwayRead MoreWoolworths5168 Words   |  21 Pages1. Executive Summary The purpose of this report is to provide a strategic analysis of Woolworths in its Australian retailing and grocery industry. There are some external factors can be affected to Woolworths strategy. To be analyzed how these factors impact to Woolworths strategies we would use Porter forces five models as a framework for analysis. They are threats of new entrants and substitute products, rivalry among competing established competitors, threat of substitutes and bargaining powerRead MoreCase Study: Beringer Wine Estates vs. Globalization and Increasing Competition1505 Words   |  7 PagesSituation Analysis Environment Economical factors such as exchange rate should be closely monitored by Beringer wine estates as its involved in import and export activities. The exchange rate will affect the profit which the firm makes. On the other hand, government and state legislation and polices must also be complied carefully since its different in states and countries. Fines maybe imposed for wrong doings of firms. Natural factors can also affect the business since rainfall, seasonal