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Essay / Whole Foods Swot Analysis - 1323
Financial Analysis – Whole FoodsWhole Foods has over the years been a very financially stable company. This is a company that has demonstrated excellent financial management even during the difficult times of the 2009 recession. This clean financial approach can be best summed up by what Ernst and Young LLP (their auditors) say about them . They refer to Whole Foods as a "company that has maintained good internal control over its financial reporting; Whole Food has provided all necessary information as designated by U.S. auditing standards and remains in good financial condition." Before highlighting the financial aspects of whole foods, it is important to quickly review the economic and industry factors that could play a significant role in the financial impact of whole foods. Since food retailing is a large and extremely competitive industry, it is extremely difficult to keep business performance stable. The dynamic nature of the market has pushed companies to pursue a more proactive business strategy, one that whole foods has definitively mastered over the past decade. With competitors like Walmart and Target, Whole Foods has differentiated itself as producers of high-quality foods with a more natural look to their product line. After performing a basic 10-year financial analysis of the company, it became clear that even with a competitive market structure, they are able to improve their performance. Between 2004 and 2013, the company showed a significant increase in revenue from approximately $3,865 million in 2004, almost four times that of $12,970 million in 2013, an "increase of 10 .4% compared to 53 weeks of the previous year. "The company's growth strategy has been to diversify its product market and make... middle of paper... it. Since 2009, the company has increased its current ratio, where it recorded an all-time high of 2.15 assets to 1 current liability. This was an important point in the company, the high ratio showed the company's conservative strategy where the majority of cash was retained to finance acquisitions and finance its growth. The company still has a relatively high current ratio because its main focus right now is acquiring and building new stores and making the whole foods brand more accessible around the world. Taking all this information into account, it is clear that ensemble foods inc. has good financial experience. High profit margins and increasing revenue and net profit showed a positive future for the company. The stock analysis also showed the growth and developments of the company and are both in a good position..