According to Whole Foods’ Income Statement, Cost of Sales is roughly 62% of Net Income. When we decrease Cost of Sales by 1%, we observe that the ‘Profit Margin’ moves from 2. 9% to 3. 52%, and ROE moves from 9. 98% to 12. 12%. Whole Foods should look at reducing this number. 20032004200520062007 Net Income ($ million)103. 7137. 1136. 4203. 83182. 74 Cash Dividends ($ million)028. 757. 08342. 04121. 14 Total Assets ($ million)1,196. 801,519. 801,889. 302,043. 003,213. 13 Total Equity ($ million)776. 20988. 401,365. 701,404. 141,458. 80 b10. 790. 58-0. 630. 35 ROA8. 6%9. 02%7. 22%9. 98%5. 69% ROE13. 36. 87%9. 99. 52. 53% Internal Growth Rate9. 4%7. 68%4. 38%-5. 94%2. 05% Sustainable Growth Rate15. 42. 32%6. 17%-8. 42%4. 63% The ‘Total Asset Turnover’ ratio is a measure of a firm’s asset use efficiency. This ratio is important since Whole Foods is in a business where it handles substantial amount of perishable goods. Hence the asset turnover should be high. Whole Foods’ asset turnover for 2004 and 2005 was 2. 54 and 2. 49 respectively. One approach they can take to improve asset turn over is by increasing sales.
When we increase sales by 1% (assuming everything else remains equal), then we notice that ‘Total Asset Turnover’ increases to 2. 51 (from 2. 49), ‘Profit Margin’ increases to 3. 86 % (from 2. 9%) and the ROE increases by 3. 44% to 13. 42%. Whole Foods could improve ROE by increasing the Asset Turnover. The ‘Equity Multiplier’ ratio is a measure of financial leverage for the firm. The ratio could be increased by taking out debt, but increased debt would result in reduced profit margin (due to increased interest expense) and thus lower ROE.
Whole Foods should look to improve Profit Margin and Asset Turnover while maintaining its equity multiplier. Whole Foods has about 16% in cash, which it could use to lower costs, improve operations efficiency, and potentially spend on advertising to stimulate increased sales. It would advisable to invest in Whole Food for the long term, but would not invest in it for the short term. In the short term, the company profits will suffer because of increase in expenses after purchase of Wild Oats (a competitor). In the long term though, this provides an opportunity for Whole Foods to expand its brand.
Whole Foods have lower ROE because they are not as leveraged as competitors. More debt increases ROE making competitors look more profitable than they really are. More debt increases bankruptcy risk. Low leverage is more desirable. Whole Foods is producing greater profit margins with very little debt. With its improved A/R turnover (reduced to half its 2006 values), steady increase in Stockholders Equity, and offering generous dividends, Whole Foods is a great stock buy for investors. The company is in great financial health.
work skill development
work skill development.
I do my placement at Preston north end academy with under 11 years old
I want decent work
Answer the question in the assignment brief
Use the references on the bottom
A professional portfolio is becoming an increasing popular tool in the search for a career. Being able
to demonstrate to potential employers that you have many of the skills required for the post can be a
This assignment assesses the following Learning Outcomes of this module:
2. Demonstrate and apply effective practical skills and technical knowledge in a relevant work
environment with consideration to health and safety
3. Reflect upon and record the development of work activity
4. Demonstrate problem solving within the industry
5. Develop industry relationships and communicate in an appropriate, professional manner
6. Apply numeracy, communication, and Information and Communication Technology skills within a
relevant work environment
You are required to undertake a minimum of 120 hours of relevant vocational experience for
successful completion of this module. This may be provided through appropriate, simulated work
environments at the college, or through placements within industry. Your module tutor will advise
you of the arrangements within your subject area. During your vocational experience you are
expected to develop your working skills, with particular attention to the areas of weakness you
identified in assignment 1.
You are required to submit a portfolio demonstrating your effective practical skills and technical
knowledge within your vocational environment. You must provide tangible evidence of your skills,
which could include a series of videos, or the results of an assessment from a tutor or workplace
supervisor. You should reflect on your skills and the development of these skills; for example how
you developed them, whether you achieved your goals and how you will build on this in the future.
Your portfolio should feature:
1. Introduction – What is your work placement? Where have you gained your hours? What does
research say about practical learning and industry experience? During this portfolio you will reflect on
your learning, what does research say about reflection?
2. Learning Log – A learning log will show how you have accumulated your hours, providing a basic
description of what you have done, and where. This can go in the appendix. However, provide the
reader with an overview or the benefits of logging the things you have been doing which has
informed your learning. Here you might expand on your involvement at PNE, analysing and using
research. This is a good chance to put some information about learning models and reflective models
of learning (How will you show you have learnt from this module).
3. Skills Audit – Now the module is over, can you start to consider what you have learnt, your
strengths and areas for improvement? Provide examples or learning that has taken place. Consider sections discussing challenges, networking, communication, coaching sessions, social challenges,
logistical challenges and don’t forget to include health and safety….
4. Health and Safety – This is crucial in any working environment. Can you provide evidence of your
working knowledge of health and safety precautions relevant to your discipline. Include risk
assessments and information from the club regarding essential info such as child protection.
5. Action Plan – Moving forwards what will you do next, to enhance strengths and turn weaknesses
into strengths? Be specific, and use SMART targets.
6. References – This report needs to have a large amount of research to support your ideas. Do not
7. Appendix – This is a good place to put your raw evidence such as; session plans, risk assessments,
pictures, videos, job descriptions, updated CVs, info on employers, info on courses you will attend.
Portfolios can take many formats, traditional paper based as well as electronic. You will receive
specific guidance on the type of portfolio that you are to produce by your module tutor.
Cottrell, S. (2010) Skills for success: the personal development planning handbook, 2nd Ed.
Basingstoke, Palgrave Macmillan.
Cottrell, S. (2013) The study skills handbook 3rd ed. Basingstoke, Palgrave Macmillan.
Duncan, M. (2005) Health and safety at work essentials. London, Lawpack,
Foster, V. (1998) Developing your employment skills. Richmond, Trotman.
Health and Safety Executive (2012) A guide to the reporting of injuries, diseases and dangerous
occurrences regulations 1995. Sudbury, HSE Publications.
Health and Safety Executive (2013) The health and safety toolbox. Sudbury, HSE Publications.
Houston, K. (2008) Winning CVs for firsttime job hunters. Richmond, Trotman.
Miller, R. (1998) Promoting yourself at interview. Richmond, Trotman
Trough, F. (2011) Brilliant employability skills: how to stand out from the crowd in the graduate job
market. Hadlow, Prentice Hall.
Chappelow, C., Leslie, J. B. (2002) Keeping your career on track: twenty success strategies. Center
for Creative Leadership.
Further Sources of Information
Health and Safety Executive
Department of Environmental Food and Rural Affairs
Department of Work and Pensions
Lantra UK’s Sector Skills Council for landbased and environmental industries
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