What do the financial ratios in Exhibit 4 tell you about past  performance and how informative are these ratios for the prospect of  future performance?

4 Questions Short Answers

Read the attached case and prepare a case analysis that responds to the following questions:

1. How would you describe Whole Foods’ strategy?

2. What do the financial ratios in Exhibit 4 tell you about past  performance and how informative are these ratios for the prospect of  future performance?

3. Examine Exhibit 7 in detail.  How important are each of the  underlying financial assumptions in the ROA forecast?  What assumptions  (i.e., margins, asset turnover, growth) play the biggest role in driving  the anticipated improvements in ROA?

4. Do you agree with the existing financial assumptions in the  forecast?  If so, why? If not, what adjustments would you make to the  model?  Be prepared to explain and defend your response.