Chapter 5 essentials of financial statement analysis
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Chapter 5: Essentials of Financial Statement Analysis. Learning objectives Essentials of financial statement analysis, financial statement analysis tools and approaches. How ROA is used to analyze profitability and the insight to separate ROA to profit margin and asset turnover rate.

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Chapter 5 essentials of financial statement analysis

Chapter 5: Essentials of Financial Statement Analysis

Learning objectives

  • Essentials of financial statement analysis, financial statement analysis tools and approaches.

  • How ROA is used to analyze profitability and the insight to separate ROA to profit margin and asset turnover rate.

  • How ROA and financial leverage combine to determine a firm’s return on equity (ROCE).

5-1


Learning objectives contd

Learning objectives (contd.)

  • Capital structure and credit risk: How short-term liquidity risk and long-term solvency risk are assessed and how to use the statement of cash flows to assess credit risk.

  • Why do companies issue pro forma earnings?

5-2


Qualitative characteristics of accounting information

Qualitative Characteristics of Accounting Information:

  • How do we define financial reporting quality?

  • Qualitative characteristics of accounting Information:

    • Understandability

    • Decision usefulness

    • Reliability

    • Relevance

    • Consistency

    • Comparability


Attributes of high quality financial reporting

Attributes of High Quality Financial Reporting

  • Financial reporting (earnings) quality has been considered positively associated with the following:

    • High persistence of earnings and cash flows

    • High predictive ability of earnings and cash flows

    • High earnings response coefficient

    • Low level of earnings management

    • More voluntarily disclosure

    • Strong corporate governance


Manipulating income and earnings management

Manipulating Income and Earnings Management

  • Earnings management: a practice that earnings reported reflect more the desires of management than the underlying financial performance of the company. 1

  • Managers can sometimes exploit the flexibility in GAAP to manipulate reported earnings in ways that mask the company’s underlying performance.

  • “Most managers prefer to report earnings that follow a smooth, regular, upward path.”2

1. Arthur Levitt, former SEC chairman. 2.Bethany McLean, “Hocus-Pocus: How IBM Grew 27% a Year,” Fortune, June 26, 2000, p. 168.


What should the users be aware of

What should the users be aware of ?

  • Statement users must:

    • Understand current financial reporting settings and standards.

    • Recognize that management may manipulate the financial information.

    • Distinguish between reliable financial statement information and poor quality information.


Financial statement analysis and accounting quality

Financial statement analysis and accounting quality

  • The accounting distortions need to be watched when analyzing statements. Examples include:

    1. Nonrecurring gains and losses

    2. Differences in accounting methods.

    3. Differences in accounting estimates.

    4. GAAP implementation differences.

    5. Historical cost convention.


Learning objective

Learning Objective:

Essentials of Financial Statement Analysis


Analysis forecast and vulation procedure s

Analysis, Forecast and Vulation Procedures

  • Reviewing the Financial Statements:

    • Review comparative financial statements and audit opinion.

  • Adjusting and forecasting accounting numbers:

    • Adjusting accounting numbers to remove nonrecurring items, the different choice in capital structures, distortions from earnings management, and significant subsequent events from reported net income.


Analysis

Analysis

  • Assessing Profitability and Creditworthiness:

    • Common size statements.

    • Trend statements

    • Financial ratio analysis: Use ratios to assess liquidity, profitability and solvency.

    • Credit analysis: Use ratios and cash flow statement to determine the short term and long term risk of default.


Forecast and valuation

Forecast and Valuation

  • Comprehensive Financial statement forecasts (see Appendix B of Chapter 6 )

  • Valuing Equity Securities (see Appendix A of Chapter 6):

    • a. Free cash-flow model

    • b. Abnormal earnings model (residual income model).


Essentials of financial statement analysis

Essentials of Financial Statement Analysis

  • Step 1: To be informed that financial statement analysis is a careful evaluation of the quality of a company’s reported accounting numbers.

  • Step 2: Then adjust the numbers to overcome distortions caused by GAAP or by managers’ accounting and disclosure choices.

Only then you can truly “ get behind the numbers” and see what’s really going on the

Company.


How the financial accounting filter sometimes works

How the financial accounting “filter” sometimes works

GAAP puts capital leases on the balance sheet, but operating leases are “off-balance-sheet”.

Managers have some discretion over estimates such as “bad debt expense”.

Managers have some discretion over the timing of business transactions such as when to buy advertising.

Managers can choose any of several different inventory accounting methods.

5-13


Financial statement analysis tools and approaches

Tools:

Approaches used with each tool:

Time-series analysis: the same firm over time (e.g., Wal-Mart in 2008 and 2006)

Financial statement analysis:Tools and approaches

Common size statements

2. Cross-sectional analysis: different firms at a single point in time (e.g., Wal-Mart and Target in 2008).

Trend statements

3. Benchmark comparison: using industry norms or predetermined standards.

Financial ratios

(e.g., ROA and ROCE)

5-14


Financial analysis tools

Financial analysis tools

  • Comparative Financial statements: Statements are compared across years.

  • Common-size statements: Recast each statement item as a percentage of a certain item.

  • Trend statements: Recast each statement item in percentage of a base year number.

  • Financial ratios.


Basic approaches

Basic Approaches

  • Time-series analysis : Identify financial trends over time for a single company.

  • Cross-sectional analysis: Identify similarities and differences across companies at a single moment in time.

  • Benchmark comparison: measures a company’s performance against some predetermined standard.


Getting behind the numbers case study krispy kreme doughnuts inc

Getting behind the numbers:Case Study: Krispy Kreme Doughnuts, Inc.

  • Established in 1937.

  • Today has more than 290 doughnut stores (company-owned plus franchised) throughout the U.S.

  • Serves more than 7.5 million doughnuts every day.

  • Strong earnings and consistent sales growth.


Comparative income statements krispy kreme s financials

Comparative Income Statements: Krispy Kreme’s Financials

Systemwide sales

Include sales from company owned and franchised stores.

Includes a $5.733 million after-tax special charge for business dispute

Includes a $9.1 million charge to settle a business dispute

Sales increased from $220.2 million in 1999 to $491.5 million in 2002.

Net income increased from $6 million in 1999 to $33.5 million in 2002.


Chapter 5 essentials of financial statement analysis

Common Size Income Statements:Krispy Kreme’s Financials: Apply the analysis tool (Common Size statement) to Income Statements

$393.7 operation expenses

$491.5 sales

* Not adjusted for distortions caused by “special items”.

Each statement item is computed as a percentage of sales.


Chapter 5 essentials of financial statement analysis

Trend Income Statements:Krispy Kreme’s Financials: Apply the analysis tool (Trend statement) to Income Statement

Base Year

$393.7 operating expenses in 2002

$194.5 operating expenses in 1999

* Not adjusted for distortions caused by “special items”.

Each statement item is calculated in percentage terms using a base year number.


Comparative balance sheets assets krispy kreme s financials balance sheet assets

Comparative Balance Sheets AssetsKrispy Kreme’s Financials:Balance Sheet Assets


Chapter 5 essentials of financial statement analysis

Common Size AssetsKrispy Kreme’s Financials: Apply the analysis tool (Common Size statement) to assets

$3.2 cash

$105.0 assets

Each statement item is computed as a percentage of Total assets.


Chapter 5 essentials of financial statement analysis

Trend AssetsKrispy Kreme’s Financials: Apply the analysis tool (Trend statement) to Balance sheet assets

$7 cash in 2000

$3.2 cash in 1999

Each statement item is calculated in percentage terms using a base year number.


Comparative balance sheets liability and equity krispy kreme s financials

Comparative Balance Sheets Liability and Equity: Krispy Kreme’s Financials


Chapter 5 essentials of financial statement analysis

Common Size Liabilities and Equity:Krispy Kreme’s Financials: Apply the analysis tool (Common Size statement) to Balance sheet liabilities and equity

$13.1 accounts payable

$105.0 total liabilities and equity

Each statement item is computed as a percentage of Total liabilities and equity.


Chapter 5 essentials of financial statement analysis

Trend Liabilities and EquityKrispy Kreme’s Financials: Apply the analysis tool (Trend statement) to Balance sheet liabilities and equity

$8.2 accounts payable in 2000

$13.1 accounts payable in 1999

Each statement item is calculated in percentage terms using a base year number.


Krispy kreme s financials abbreviated cash flow statements

Krispy Kreme’s Financials:Abbreviated cash flow statements


Chapter 5 essentials of financial statement analysis

Common Size Cash Flow Statements:Krispy Kreme’s Financials: Apply the analysis tool (Common Size statement) to Cash Flow Statements

$93.9 capital expenditures

$491.5 sales

Each statement item is computed as a percentage of Sales.


Chapter 5 essentials of financial statement analysis

Trend Cash Flow StatementsKrispy Kreme’s Financials: Apply the analysis tool (Trend statement) to Cash Flow Statements

$93.9 capital expenditures in 2002

$10.5 capital expenditures in 1999

Each statement item is calculated in percentage terms using a base year number.


Krispy kreme analysis lessons learned

Krispy Kreme analysis: Lessons learned

  • Informed financial statement analysis begins with knowledge of the company and its industry.

  • Common-size and trend statements provide a convenient way to organize financial statement information so that major financial components and changes are easily recognized.


Krispy kreme analysis lessons learned1

Krispy Kreme analysis: Lessons learned

  • Common-size and trend statement techniques can be applied to all financial statements and every section of statements.

  • Financial statements help analysts gain a sharper understanding of the company’s economic condition and its prospects for the future.


Learning objective1

Learning Objective:

Profitability Analysis


Financial ratios and profitability analysis

Financial ratios and profitability analysis

Operating profit margin

EBI

Sales

Return on assets

ROA=

EBI

Average assets

X

Asset turnover

Sales

Average assets

NOPAT is net operating profit after taxes

  • Analysts do not always use the reported earnings, sales and asset figures.

  • Instead, they often consider three of adjustments to the reported numbers:

  • Remove non-operating and nonrecurring items to isolate sustainable operating profits.

  • Eliminate after-tax interest expense to avoid financial structure distortions.

  • Eliminate any accounting quality distortions (e.g., off-balance operating leases).


Calculating return on assets

Calculating Return on Assets

Eliminate nonrecurring items

Eliminate interest expense

Effective tax rate


How can roa be increased

How can ROA be increased?

There are just two ways:

  • Increase the operating profit margin, or

  • Increase the intensity of asset utilization (turnover rate).

Asset turnover

ROA=

EBI

Average assets

EBI

Sales

Sales

Average assets

Operating profit margin

5-35


Roa margin and turnover examples

  • Turnover improvement: Suppose assets can be reduced to $45 million without sacrificing sales or profits.

  • Margin improvement: Suppose expenses can be reduced so that EBI becomes $10.

ROA, margin and turnover examples:

  • A company earns $9 million of EBI on sales of $100 million with an asset base of $50 million.


Roa decomposition and analysis

ROA Decomposition and Analysis

1.

2

  • How was Krispy Kreme able to increase it’s ROA from 7.1% to 12.1% over this period?

  • The expanded store base, along with increased sales, allowed the fixed costs be spread over a number of stores- The result was in an improved operating profit margin.

  • However, the asset based was considerably less productive in 2002 ( Asset turnover is 1.48) than it was in 1999 ( Asset turnover is 2.22) – More stores meant more resources ( assets) tied up operating cash, receivables, etc.


Further decomposition of roa

NOPAT

Sales

Sales

Average assets

Further decomposition of ROA

Correspond to the common-size

Income statement items

Operating profit

margin

ROA

=

X

Asset turnover


Usages of decomposition of roa

Usages of Decomposition of ROA

  • The profit margin components can help the analyst identity areas where cost reductions have been achieved or where cost improvements are needed.

  • The current asset turnover ratio helps the analyst spot efficiency gains from improved accounts receivable and inventory management.

  • The long-term asset turnover ratio captures information about property, plant, and equipment utilization.


Roa and competitive advantage krispy kreme

ROA and competitive advantage:Krispy Kreme

Wendy’s, Baja Fresh, Café Express

S&P industry survey or other sources

Q: What was the key to Krispy Kreme’s success in 2002 ?

Answer: Krispy Kreme outperformed the competition by generating more sales per

asset dollar.


Roa and competitive advantage four hypothetical restaurant firms

ROA and competitive advantage:Four hypothetical restaurant firms

  • Competitive Advantage:

    Companies that consistently earn an ROA above the floor. (e.g., Firm C)

    • However, a high ROA attracts more competition which can lead to an erosion of profitability and advantage. Competition works to drive down ROA toward the competitive floor.

  • Firm A and B earn the same ROA, but Firm A follows a differentiation strategy while Firm B is a low cost leader.

    • Differences in business strategies give rise to economic differences that are reflected in differences in operating margin, asset utilization, and profitability (ROA).

Competitive ROA floor


Components of roce

Components of ROCE

Return on assets (ROA)

NOPAT

Average assets

Return on common

equity (ROCE)

X

Common earnings leverage

Net income available to common shareholders

Average common shareholders’ equity

Net income available to common shareholders

NOPAT

Net income available to common shareholders = Net income – preferred dividends

X

Financial structure leverage

Average assets

Average common shareholders’ equity

ROCE= ROA * Common earnings leverage* Financial Structure leverage


Return on equity and financial leverage

Return on equity and financial leverage

Unchanged – because of Financial leverage

  • 2005: No debt; all the earnings belong to shareholders.

  • 2006: $1 million borrowed at 10% interest; ROCE climbs to 20%.

  • 2007: Another $1 million borrowed at 20% interest; ROCE falls to only 15%.


Return on equity and financial leverage1

Return on Equity and financial leverage

  • Financial leverage is beneficial only when the company earns (i.e., ROA) more than the incremental after-tax cost of debt.

  • If the cost of debt is greater than the earnings, increased leverage will harm shareholders.


Return on equity and financial leverage contd

Return on Equity and financial leverage (contd.)

  • The advantage of debt financing is the tax deduction on interests.

  • The disadvantage is the increase of the bankruptcy risk.

  • Both the cost of debt and the bankruptcy probability need to be considered in determining the capital structure.

  • It is hard to determine the optimal mix of capital and debt.


Profitability and financial leverage case study

Leverage helps

Leverage neutral

Leverage neutral

Leverage hurts

Profitability and financial leverage:Case Study

Leverage helps


Learning objective2

Learning Objective:

Capital structure and

Assess Credit Risk


Credit risk and capital structure overview

Credit risk and capital structure:Overview

  • Credit risk refers to the risk of default by the borrower.

  • A company’s ability to repay debt is determined by it’s capacity to generate cash from operations, asset sales, or external financial markets in excess of its cash needs.

  • Financial ratios play two roles in credit analysis:

    • They help quantify the borrower’s credit risk before the loan is granted.

    • Once granted, they serve as an early warning device for increased credit risk.


Credit risk and capital structure balancing cash sources and needs

Credit risk and capital structure:Balancing cash sources and needs

The cash flow statements contain information enabling a user to assess a

Company’s credit risk, financial ratios are also useful for this purpose.


Traditional lending products

Short-term loans:

Seasonal lines of credit

Special purpose loans (temporary needs)

Secured or unsecured

Revolving loans

Like a seasonal credit line

Interest rate usually “floats”

Long-term loans:

Mature in more than 1 year

Purchase fixed assets, another company, Refinance debt ,etc.

Often secured

Public Debt

Bonds, debentures, notes

Special features: Sinking fund and call provisions

Traditional lending products


Evaluating the borrower s ability to repay

Step 2:

Evaluate

accounting quality

  • Spot potential distortions

  • Adjust reported numbers as needed

Step 3:

Evaluate current

profitability and health

  • Examine ratios and trends

  • Look for changes in profitability, financial

  • conditions, or industry position.

Step 4:

Prepare “pro forma”

cash flow forecasts

  • Develop financial statement forecasts

  • Assess financial flexibility

Step 5:

Due diligence

  • Kick the tires

Step 6:

Comprehensive risk

assessment

  • Likely impact on ability to pay

  • Assess loss if borrower defaults

  • Set loan terms

Evaluating the borrower’s ability to repay

Step 1:

Understand

the business

  • Business model and strategy

  • Key risks and successful factors

  • Industry competition


Credit risk short term liquidity ratios

Current assets

Current ratio =

Current liabilities

Cash + Marketable securities + Receivables

Quick ratio =

Current liabilities

Net credit sales

Accounts receivable turnover =

Average accounts receivable

Cost of goods sold

Inventory turnover =

Average inventory

Inventory purchases

Accounts payable turnover =

Average accounts payable

Credit risk: Short-term liquidity ratios

Including Inventory

Very immediate

liquidity

Liquidity

ratios

Short-term

liquidity

Activity

ratios

Activity ratios tell us

How efficiently the company is using its assets.

Liquidity refers to the company’s short-term ability to generate cash for working

Capital needs and immediate debt repayment needs.


Receivables turnover ratio and collection period

Receivables

Turnover

Ratio

Net Sales

Average Accounts Receivable

=

Average Collection Period

=

365

Receivables Turnover Ratio

Receivables Turnover Ratio and collection period

This ratio measures how many times a company converts its receivables into cash each year.

Average Collection Period

This ratio is an approximation of the number of days the average accounts receivable balance is outstanding.


Inventory turnover ratio and average days in inventory

Inventory

Turnover

Ratio

Cost of Goods Sold

Average Inventory

=

Average Days in Inventory

=

365

Inventory Turnover Ratio

Inventory Turnover Ratio and Average Days in Inventory

This ratio measures the number

of times merchandise inventory

is sold and replaced during the year.

Average Days in Inventory

This ratio indicates the number

of days it normally takes to sell inventory.


Credit risk operating and cash conversion cycles

365 days

Days accounts receivable outstanding =

Accounts receivable turnover

365 days

Days inventory held =

Cash conversion cycle 55 (75-20) days

Inventory turnover

365 days

( 20 days)

Days accounts payable outstanding =

Accounts payable turnover

Credit risk:Operating and cash conversion cycles

Working capital ratios:

45 days

(Days before cash is collected from the customer)

Operating cycle 75 days

30 days

( Days that suppliers are paid after inventory is purchased)

Operating cycle: That is how long it takes to sell inventory (30 days) and collect cash from the customers (45 days).


Credit risk long term solvency

Credit risk:Long-term solvency

Including

Intangible assets

Long-term debt

Long-term debt to assets =

Total assets

Debt ratios

Long-term debt

Long-term debt to tangible assets =

Total tangible assets

Long-term

solvency

Operating incomes before taxes and interest

Interest coverage =

Interest expense

Coverage

ratios

Cash flow from continuing operations

Operating cash flow to total liabilities

=

Average current liabilities + long-term debt

Solvency refers to the ability of a company to generate a stream of cash inflows sufficient to maintain its productive capacity and still meet the interest and principal payment on its long-term debt.


Credit risk of krispy kreme short term liquidity and long term solvency

Credit risk of Krispy Kreme :Short-term liquidity and Long-term solvency


Credit risk default risk

Credit risk: Default Risk

  • A firm defaults when it fails to make principal or interest payments.

  • Lenders can then:

    • Adjust the loan payment schedule.

    • Increase the interest rate and require loan collateral.

    • Seek to have the firm declared insolvent.

Source: Moody’s Investors Service (May 2000)

Default rates by Moody’s credit rating, 1983-1999


Financial ratios and default risk return on assets roa

Financial Ratios and Default RiskReturn on assets (ROA)

ROA and probability of default is negatively associated.

Profitability: Return on Assets Percentiles (excludes extraordinary items)

Source: Moody’s Investors Service (May 2000)


Financial ratios and default risk quick ratio

Financial Ratios and Default RiskQuick Ratio

Quick Ratio and probability of default is negatively associated.

Liquidity: Quick Ratio Percentiles

Source: Moody’s Investors Service (May 2000)


Credit analysis case study g t wilson s credit risk

Credit analysis:Case Study: G.T. Wilson’s credit risk

  • A bank client for over 40 years.

  • Owns 850 retail furniture stores throughout the U.S.

  • Increased competition and changing consumer tastes caused the following changes in Wilson’s business strategy:

    • Expand product line to include high quality furniture, consumer electronics, and home entertainment systems.

    • Develop a credit card system to help customers pay for purchases.

    • Open new stores in suburban shopping centers and close unprofitable downtown stores.


Credit analysis case study g t wilson s credit risk1

Credit analysis:Case Study: G.T. Wilson’s credit risk

  • Bank now has a $50 million secured construction loan and a $200 million revolving credit line which is up for renewal with Wilson.

  • What do the Wilson’s financial statements tell us about its credit risk?

  • Should the bank renew Wilson’s $200 million credit line?


Credit analysis interpretation of cash flow components

Credit Analysis: Interpretation of cash flow components

.

.

.

Negative free cash flow

Increased borrowing

Continued dividend payment


Credit analysis selected financial statistics

Credit Analysis : Selected financial statistics

Declining margin

Customers take longer to pay, but reserve is smaller

Larger debt burden


Credit analysis r ecommendation

Credit analysis: Recommendation

  • Wilson is a serious credit risk:

    • Inability to generate positive cash flows from operations.

    • Extensive reliance on short-term debt financing.

  • The company may be forced into bankruptcy unless:

    • Other external financing sources can be found.

    • Operating cash flows can be turned positive.

  • Update: Bankruptcy was declared shortly after these financials were released.


Learning objective3

Learning Objective:

Pro Forma Earnings


Pro forma earnings

Pro Forma Earnings

  • Companies often voluntarily provide a pro forma earnings number when they announce annual or quarterly earnings.

  • Pro forma earnings are management’s assessment of permanent earnings.


Pro forma earnings1

Pro Forma Earnings

  • Many companies today are highlighting a non-GAAP earnings in press releases, in analyst conference calls, and in annual reports.

  • The Sarbanes-Oxley Act Section 401 requires a reconciliation between pro forma earnings and earnings determined according to GAAP.


Financial statement analysis non gaap earnings pro forma earnings and ebitda

Many companies today are highlighting a non-GAAP earnings in press releases, in analyst conference call, and in annual reports.

Sometimes these earnings figures are called EBITDA ( earnings before interest, income taxes, depreciation, and amortization)

Sometimes it is called “ adjusted earnings’.

Sometimes it is called “ pro forma earnings”.

Financial statement analysis:Non-GAAP earnings: Pro forma earnings and EBITDA


Financial statement analysis pro forma earnings at amazon com

Financial statement analysis:Pro forma earnings at Amazon.com

Company defined numbers

Computed according to GAAP


When use the ebitda or pro forma earnings analysts should remember

When use the EBITDA or “pro forma” earnings, analysts should remember:

  • There are no standard definitions for non-GAAP earnings numbers.

  • Non-GAAP earnings ignore some real business costs and thus provide an incomplete picture of company profitability.

  • EBITDA and pro forma earnings do not accurately measure firm cash flows.


Why do firms report ebitda and pro forma earnings

Help investors and analysts spot non-recurring or non-cash revenue and expense items that might otherwise be overlooked.

Pro forma earnings could mislead investors and analysts by changing the way in which profits are measured.

Transform a GAAP loss into a profit.

Show a profit improvement.

Meet or beat analysts’ earnings forecasts.

Why do firms report EBITDA and “pro forma” earnings?


Summary

Summary

  • Financial ratios, common-size statements and trend statements are powerful tools.

  • However:

    • There is no single “correct” way to compute financial ratios.

    • Financial ratios don’t provide the answers, but they can help you ask the right questions.

    • Watch out for accounting distortions that can complicate your interpretation of financial ratios and other comparisons.


Summary of financial statement analysis how to use financial ratios

Summary of financial statement analysisHow to use financial ratios

  • Profitability:

    • ROA ( Return on assets)

    • Operating Profit Margin

    • ROCE ( Return on common stockholder’s equity)

  • Market Measures:

    • Earnings per share (EPS)

    • Price/ earnings ( Market price of common stock/ EPS)

    • Dividend payout ( Dividends per share/ EPS)

    • Dividend yield ( Dividends per share/ Market price of common stock)


Summary of financial statement analysis how to use financial ratios1

Summary of financial statement analysisHow to use financial ratios

  • Liquidity ( Evaluate short-term credit risk)

    - Liquidity ratios: Current ratio and quick ratio

    - Liquidity of working capital : Average collection period, Days inventory held, days payable outstanding, operating cycle days, cash conversion cycle, etc.

    - Operating Efficiency ( Activity ratios)

    • Accounts receivable turnover

    • Inventory turnover

    • Accounts payable turnover


Summary of financial statement analysis how to use financial ratios2

Summary of financial statement analysisHow to use financial ratios

  • Solvency ( Evaluate long-term credit risk)

    • Coverage ratios: interest coverage, operating cash flows to total liabilities

    • Debts ratios:

      • Debt/ Assets

      • Debt/ equity (Total liabilities/ Stockholders’ equity)


Whole foods market comparative income statement

Whole Foods Market,Comparative Income Statement

5-77


Common size statements

Common Size statements

5-78


Business segment information

Business Segment information

5-79


Comparative balance sheet

Comparative Balance Sheet

5-80


Comparative balance sheet1

Comparative Balance Sheet

5-81


Common size and trend analysis

Common size and trend analysis

5-82


Common size and trend analysis exhibit 5 5 continued

Common size and trend analysis (Exhibit 5.5 continued)

5-83


Common size and trend analysis1

Common size and trend analysis

5-84


Common size and trend analysis exhibit 5 6 continued

Common size and trend analysis (Exhibit 5.6 continued)

5-85


Comparative cash flows

Comparative Cash Flows

5-86


Common size trend analysis

Common size trend analysis

5-87


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