美国Village和Fresh超市会计财务报表对比分析英文版.docx

1、美国Village和Fresh超市会计财务报表对比分析英文版BFIN/ACTG 441Financial Statement AnalysisProject#2Ratio and common-size analysisVillage Super Market,Inc. V.S.Fresh Market,Inc.By: Xiaoru Liu02/21/2016 Summary of Companies:Both Village Super Market and The Fresh Market are grocery retailers that are heavily involved in

2、 their communities and strive to bring fresh food for allat a reasonable price. My company, Village Super Market (VSM), also known as ShopRite, is a retail grocery store that strives for excellence. Village Super Market currently employees over 6,700 employees. There are currently 29 ShopRite stores

3、 operating in northern, central and southern New Jersey, Pennsylvania, and Maryland. They are all owned and operated by one family (About Village Super Market, Inc., 2015). Their vision is to help families live better lives (About Village Super Market, Inc.,2015). Some of their products and services

4、 include, but are not limited to; a bakery, seafood, meat and poultry, deli and dairy, daily household items, frozen foods, fresh produce, baking and cooking ingredients, snacks, candy, organic products, pharmaceuticals, floral services, the ShopRite Brand, alcoholic beverages such as wine and beer,

5、 catering services, beauty and health products, etc (Village Super Market, Inc. Weekly Circular Categories, 2015). Competing company, the Fresh Market (FM) is also a good grocery retailer. What started in North Carolina, is now spread across 27 states and has about 169 stores (The Fresh Market, Inc.

6、 About Us, 2013). Fresh Market employs about 7,800 employees. Some of their products and departments include; candy, deli and cheese, produce, grocery and dairy, baking and snacking ingredients, prepared foods, floral shop, gifts, seafood, health and beauty products, daily household items, wine sele

7、ctions and their very own Fresh Market Brand of products (The Fresh Market, Inc. Departments, 2013).Answers to Questions1. Which of the two companies is the more liquid? Is your companys trend positive or negative?The VSM has a higher current ratio of 1.413 than the 1.118 of FM. With regards to liqu

8、idity, I found that while neither company had more than one dollar of cash to cover each dollar of debt, VSM is very near that mark at 0.937, while FM is currently at 0.608. This tells us that while neither company have large enough debt ratios to account for being in debt due to leveraging expansio

9、n and growth, they are both still struggling to reach the mark of being able to pay for what they owe. Essentially, something is definitely holding both companies back, especially FM, from being able to grow and become lucrative. Furthering this idea is each companys cash ratio. While VSM is at 0.61

10、4, FM is currently at 0.403, displaying that each company has the respective proportion of cash or cash equivalents invested in current assets to cover current liabilities. Village Super Market is performing considerably more liquid than the Fresh Market. Different with normal companies, those two m

11、arkets has a grate cash flow.Although this ratio of my company changes, I think my company gets better now.2.Which of the two companies is more leveraged? Is your companys trend positive or negative?The leverage ratios I found to be particularly helpful in this scenario included not only the debt an

12、d times interest earned ratios, but also the debt to equity and cash coverage ratios. The debt ratio in this case VSM only has 0.222 of their assets financed by debt, while FM has 0.388 of their assets financed by debt. This situation can be viewed from a couple different stances: first, the negativ

13、e stance on FM that they are at a greater financial risk being at close to 40% of their assets being financed by debt; yet, on the other hand, you could also say that VSM is not taking enough risk and investing in their own growth. Now, I cannot say with any certainty that VSM is not using their own

14、 money, whether it be cash or retained earnings that have been reinvested, to finance their own long term assets. All I can say, is that FM is using close to double the amount of debt to invest in their growth. While debt ratios tend to vary widely across different industries, the grocery sector ten

15、ds to be around 64.05% (The Street. Getting Down to The Fundamentals, 2001). The more important ratio in reference to the grocery sector is the debt to equity ratio. VSM has a debt to equity ratio of 0.380, while FM has a ratio of 0.635. Compared to the retail industry average of 0.80, Im sure that

16、VSM and FM both fall quite short. Also, my company is good, But I do thinks this one can be higher.3.Which of the two companies is more profitable? Is your companys trend positive or negative?As to the profitability abilities, here, FM really stand out over VSM; in both the gross profit margin as we

17、ll as the operating profit margin they lead with ratios of 0.339 and 0.059, respectively, while VSM is only at 0.273 and 0.027. The returns on equity of FM is also higher. Although there is a substantial difference in ratios for these two companies, taking into account the fact that they are both gr

18、ocery stores,considering how small the margin is on a portion of their products. And my company also changes at this part, which makes me dont know if its positive or not.4.Which of the two companies is more efficient? Is your companys trend positive or negative?Upon initial observation, we can see

19、that VSM and FM have very similar asset turnover ratios of 3.650 and 3.262, which is to be expected. The reason this is not a huge surprise is that these companies do not necessarily compete in this area, as they are both super markets, the only long term assets they may have would be fork lifts to

20、maneuver stock and inventory,possibly scanners and other technologies used at POS or for inventory management, and etc., none of which would be deciding factors in how well the company itself is doing. However, when we look at inventory turnover, things begin to clear up. Inventory turnover data mea

21、ns that VSM sells its products at a faster, more efficient rate. The inventory turnover rate for VSM and FM are 25.139 and 16.795, respectively. This tells us that each company turns their inventory over that many times per year.VSM do better in this part. Also, a lower accounts receivable and accou

22、nts payable indicate that this company is efficient and low risk. FM do better at this part expect of 2011, makes it have a more reliable cash flow. But both of them are really low, and my company is positive at this part5.Which of the two companies has the greater ability to repay its debt on time?

23、Use the data shown in Question 2, we can find that both of these companies have a good ratio on interest coverage ratio, and VSM has a better one, which means VSM has a greater ability to repay its debt on time.I failed to find the lease payment of these two markets so neglect the fixed charge cover

24、age.6.What is the trend in Gross Profit Margin and Net Profit Margin?Those indexes trend to be smaller, in my opinion. Although there is a substantial difference in ratios for these two companies, taking into account the fact that they are both grocery stores, considering how small the margin is on

25、a portion of their products. So I do think a goodwill and a good service means a lot for a company like VSM and FM.SummaryBoth of two companies made a great work. Looking at these two companies financial performance, a couple substantial differences still stand out. The activity, leverage, market va

26、lue, liquidity, and profitability ratios show that Village Super Market is relatively performing considerably better than the Fresh Market. BibliographyVillage Super Market, Inc. (2015). Retrieved Feb./03/2016, from Village Super Market, Inc. Community (2015). Retrieved Feb./03/2016, from The Fresh

27、Market, Inc. (2013). About Us. Retrieved Feb./03/2016, from Village Super Market, Inc. (2015). Weekly Circular Categories. Retrieved Feb./03/2016, from The Fresh Market, Inc. (2013). Departments. Retrieved Feb./03/2016, from Houston Chronicle. (2015). Four Basic Types of Financial Ratios Used to Measure a Companys Performance. Retrieved Feb./03/2016, from Village Super Market Annual Report. (2013). Retrieved Feb./03/2016, from The Street. (2001). Getting Down to The Fundamentals. Retrieved Feb./03/2016, from