Whole Foods Market Final presentation by:Rebekah Leybold

Introduction

  • The growth of WFM over the past few years has been accomplished through mergers and acquisitions, which has proven to benefit the financial position of the company.
  • WFM is set apart from other grocery store chains because they sell the highest quality organic products, keep focus on customer satisfaction, and promote the health of their shareholders by educating them on healthy eating.

Strengths & Weaknesses

  • From 2014 to 2016, income increased to $1.1 billion and gross margin grew rapidly to 34.58% (WFM, 2016).
  • Availability of organic products, excellent management chain and modern information systems
  • Free cash flow for 2016 was $400 million
  • The main weakness of WFM is the high price of their products.
  • Dependence on U.S. market: The U.S. accounted for 97% of profits in 2015, which indicates vulnerability for downturns in their economy (WFM, 2016).

Profitability Ratios

  • The gross profit margin has been rising in the last few years, which shows that the company has the ability to make profit based on their products and services. 2016: (.34)
  • ROA has slowly decreased from .10 to .08 from 2014 to 2016, which indicates that the company has the ability to use its assets to turn profits.
  • ROE has fluctuated in the past few years between .14 and .16, showing that they are making an adequate return on its investments.

Future Projections

  • The future of WFM is promising based on their customer base and growth within recent years
  • Loyal customer base
  • Continual growth and new ideas to keep the efficiency and name brand of the company consistent

Conclusion

  • Looking at the last five years of WFM, the company has sustained revenue growth consistently
  • They have almost doubled their sales since 2014, which indicates their susceptibility for growth in the future
  • Whole Foods Market is a growing company that is projected to have continuous growth throughout the upcoming years

References

  • Whole Foods Market. (2016, November 18). Annual Report 2016. Retrieved March 3, 2017, from http://s21.q4cdn.com/118642233/files/doc_financials/2016/Annual/2016-WFM-Annual-Report.pdf

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