Respond to these two separate responses in two separate paragraphs with a minimum of 175 words. Please respond by agreeing and adding more facts if possible
First response from Nicole Perez:
In this weeks discussion I decided to go with the only thing I could do this pandemic semi normally is go to any and every grocery stores . The two I decided to compare are both very similar in concept and both grocery chains are within a block from each other in my neighborhood and it sometimes becomes difficult on where to chose to shop . For the Grocery chains I chose Whole Foods Market and Trader Joes . As I mentioned both have very similar concepts and sometimes sell alot of the same products , with Whole foods in the lead with Revenue being $385.06 billion for the year of 2020 and Trader Joes finishing with a total of $215 million . I do believe this is due to Trader Joes being significantly smaller than Whole Foods , but both sell ready to go meals , organic products , cold pressed juices , organic , and vegan products there’s hardly any difference with these . I personally go to Trader Joes only because it is smaller and less people .
Whole Foods
Total Revenue for 2020 $385.06 Billion
Profit Margin : 0.0339%
Return on assets :0.8%
Trader Joe’s
Total Revenue for 2020 $215 million
Profit Margin: 2.11%
Return on Assets : 5.29%
https://brightquery.com/wp-content/uploads/2021/05/Trader-Joes-BQ-Company-Report.pdf
https://www.macroaxis.com/invest/ratio/WFM/Current-Ratio
Response from Bibiana Walker:
Hello class,
The two companies I chose to compare are Lowe’s and Home Depot. I conducted four Ratio analyses on the two and the information I found is listed below:
Current Ratio:
Home Depot Lowe’s
2020: 1.23 2020: 1.19
2019: 1.08 2019: 1.01
Profit Margin
2020: 0.10 2020: 0.07
2019: 0.10 2019: 0.06
Return on Assets (ROA)
2020: 0.18 2020: 0.12
2019: 0.22 2019: 0.11
Return on Equity (ROE)
2020: 3.90 2020: 4.06
2019: (3.61) 2019: 2.17
()=deficit
Based on the information that I found, these companies had some competitive ratios. The ROE had a big difference in the two companies in 2019. However, the company bounced back in the following year. In all other areas, you can see there was improvements in the figures in the following year.
Looking at the information, I would take employment from both companies, and I would invest in both of them. I would be hesitant to invest more so in Home Depot because of the large deficit in 2019. However, I would have to consider the pandemic and people being unable to work in that timeframe.
Reference
Home Depot, 2022, Annual Report, Annual Reports Recent | The Home Depot
Lowe’s, 2022, Annual Report, lowes-2020ar.pdf
Here is the original question:
The four key users of financial statements are owners/managers, lenders, investors, and governments. These users rely on financial statements to evaluate a company’s past financial performance as indicators in areas of profitability, liquidity, leverage, and efficiency; to create benchmarking matrixes; and to support future decision making.
Choose 2 companies in the same industry whose financial statements are available online. Complete several financial ratios for each company and compare them. Share your analysis and answer the following questions in a minimum of 175 words:
What did your analysis tell you about these companies?
What sorts of decisions would this analysis help you make (such as buying stocks, considering accepting an employment offer, etc.)?
Cite your sources in APA format.
