Kroger Company SEC 10-K Analysis The Kroger Company was founded in 1883 and incorporated in 1902 and is now headquartered in Cincinnati, Ohio. As of January 30, 2016, Kroger is one of the largest retailers in the world based on annual retail sales; they also manufacture some of their own food for sale in company supermarkets. Their primary revenues are earned at point of sale to customers in Kroger stores and fuel centers. As of January 30, 2016, Kroger operated, either directly or through its satellite companies, 2,778 retail food stores under a variety of local companies, 1,387 of which had fuel centers. Kroger Co. also operated, through its subsidiaries, 784 convenience stores, 323 fine jewelry stores and an online retailer. Their fiscal …show more content…
Kroger estimates that approximately 95% of their inventories in 2015 were valued using the LIFO method. Cost for the remainder of their inventories, including almost all fuel inventories, was determined using the First in First Out (FIFO) method. Kroger utilizes the Item Cost Method to determine its inventory cost before the LIFO adjustment for their store inventories. The reason Kroger employs the item-cost method of accounting is that it allows Kroger a more accurate reporting strategy for periodic inventory balances. Another reason Kroger uses this method is most of their inventory is finished goods and can recorded items at actual purchase costs. Kroger conducts a physical count to evaluate inventory shortages throughout the year from their facilities. They record allowances for inventory shortages based on the results of the recent physical inventories to provide for estimated shortages from the last physical count to the financial statement date. …show more content…
Kroger supermarkets stock their own brands such as Private Selection?, Kroger?, Ralphs?, Fred Meyer?, King Soopers?, Simple Truth? and Simple Truth Organic? in their facilities. Kroger also operates under local banners of companies that they own such as Baker?s Supermarkets, City Market, Dillions Food Stores, Fry?s Food and Drug, Gerbes Super markets, Jay C, Vitacost.com, Harris Teeter, Roundy?s, Owen?s, Ralphs, Scotts, etc. This affords Kroger Company goodwill in these local markets. Per their SEC 10-K report Kroger estimates that as of January 2016 their goodwill totaled at $2.7
Congratulations on the 2017 third quarter results for Publix. Store sales, earnings, and a higher stock price are impressive. With Publix headquartered in Lakeland, Florida, and 775 stores in Florida, the company is a prominent business for our state. With a history dating back to 1930 and founder George W. Jenkins, Publix has become one of the largest employee-owned grocery chains in the United States. I am a long-time Publix shopper and appreciate the friendly customer service provided by store employees.
PR Newswire New York (New York) 20 July 2016. Recent as of January 2017, other services Kroger Company provides to its customers are providing 1,455 fuel centers within a few of the grocery stores locations, 784 conveniences stores operated under the chain, 319 jewelry stores, and an online retailer. (Merchant Online by FTSE
Kohl’s a company that takes care of their customers, employees, and those that are less fortunate. Their focus is the well being and the growth of the families that work for them and the families that maintain the department store open. In other words, it’s core is based on helping others. The system designed to convenience everyone involved. As a result, it has spread to 1,160 locations in the US, 986 being innovative stores that are 88,000 gross square feet of retail space, and 178 non-innovative stores in 55,000 to 68,000 gross square feet of retail space.
Concepts: 1.CVS and Walgreens have opposite inventory methods that are used in their day to day sales. CVS used the First-In-First-Out (FIFO) method for their inventory. In this method the earliest goods purchased are the ones that sell first. For inventory recording CVS would use the price of the most recent purchase of products to determine their inventory value. Following this the ending inventory is subtracted from this to get a cost of goods sold.
Abstract The Wilkerson Company started facing declination in profits due to the price cutting on their pumps. On the contrary, while the price pumps were decreasing to record numbers, the flow controllers, which controlled the rate and direction flow of chemicals, could increase its prices without significant loss or any competitive response. Wilkerson, his controller, and manufacturing manager developed an activity-based cost model (ABC) to better comprehend the various demands that each product line makes on the organization 's indirect and support resources. Exhibit 1 showed us our operating results, Exhibit 2 showed us our product profitability analysis, Exhibit 3 displayed our product data, and Exhibit 4 was a compilation of the monthly
One of their biggest competitors is KFC. In 2014, KFC was announced the former largest fried chicken franchises in the US. This was because Chick-fil-a was announced the largest. Chick-fil-a is also competing with McDonald’s corporation, Popeyes, and Yum Brands Inc.
In the review of the corporate level strategy, we can see many different competitive advantages branching from their use of corporate diversification and vertical integration. Going deeper into those strategies the three elements that allow for a competitive advantage for The Kroger Co. include operating into different markets, having a successful customer reward program, and by having many different locations nationwide under many different brand names. The VRIO analysis found that all three of these give Kroger’s a sustainable competitive advantage by being valuable, rare, costly to imitate and having the right organization structure business wide. In the review of the business level strategy, there were just as many different competitive
In 1901, Kroger was the first grocery in the country to establish his own bakeries and sell meats and groceries under one roof. Kroger is one if the largest food manufacturing business in America which, operates 38 food manufacturing facilities and make thousands of products. The biggest history of Kroger’s history came in 1999, after the companies teamed up with Fred Meyer Inc. in a $13 billion deal that created a supermarket chain with broadest
The choice of inventory accounting methods, specifically for the case of FIFO and LIFO, has developed into a decision, which includes varying consequences and comes with specific implications and benefits, such as communicating private information with FIFO (Hughes, and Schwartz, 1988, p.42) or tax benefits for the choice of LIFO (Morse and Richardson, 1983, p.125). Every firm and manager has to face the decision of which accounting method to choose, and has to include several aspects into their decision making process and weigh the pros and cons in general. However, the empirical evidence (Frankel and Hsu, 2015, p.48) shows some controversies as to what inventory accounting methods firms decided to use in the past, even though the theory would
Companies all over the globe will experience some sales and profit decrease. Home Depot in the growing housing industry benefited greatly from the houses being built. The accounting concept portrayed in this situation for home depot is called operating leverage. Operation leverage is when managers view a small change in revenue and magnify it to dramatic changes in revenue (Edmonds, Tsay, & Olds, 2011). With a decrease in the market for construction materials, Home Depot is experiencing a 3% decrease revenue and a 21% decrease in profitability.
Prohibition of the last-in, first-out inventory (LIFO) method by the IFRS has been always the center of the discussion. Related to this has been the significant difference between IFRS versus US GAAP regarding the application of the lower of cost or market (LCM) measurement and reporting of inventory. US GAAP inventory rules are more conservative than IFRS inventory rules. There are four significant differences between US GAAP and IFRS. IFRS permits to use FIFO and weighted average method but LIFO is prohibited IFRS applies the lower of cost or net realizable value.
EXECUTIVE SUMMARY TABLE OF CONTENTS Executive Summary 1 Introduction 3 Competitive Situation 4 Variable Costing 5 Existing Costing System 6 Diagram ABC 8 Activity Based Costing & Profitability 9 Conclusion 14 Bibliography 15 INTRODUCTION COMPETITIVE SITUATION Firstly, here is a brief description of what Wilkerson Company specializes in. According to our case study and various online sources, Wilkerson manufactures and markets a complete line of compressed air treatment components and control products.
Analysis of Financial Statements Student number: 10221450 Word count: 2993 words Excluding Bibliography Course code: B9AC106 Course title: Financial Analysis Lecturer: Mr. Enda Murphy Company: Whitbread PLC Table of Contents 1. Whitbread plc 3 Financial Ratio Comparison 6 1.1 Profitability Ratio 6 1.2 Liquidity Ratio 9 1.3 Efficiency Ratio 11 2. Intercontinental hotels group plc and Ratio Comparison with Whitbread 12 3. 10% Stake in Intercontinental Hotels Group PLC 13 Conclusion 16 Market Value and Book Value
I. Introduction Walmart Stores, Inc. - the American corporation which was established in 1962, is well-know for the globe’s largest multinational retailer (Walmart 2016). Walmart owns a chain of grocery stores, discount department stores and hypermarkets with about 11,500 retail stores over 28 countries. In 1998, Walmart entered Germany with the acquisition of Wertkauf and Interspar chain (Louisa 2006). Despite having the strongest economy in Europe and the third largest retail market in the world, Germany was not an ideal place for Walmart to achieve its ambition (Knorr and Andt 2003). After nearly a decade struggling to grow, Walmart decided to pull out of German market in 2006 with the loss of one billion dollars (Mark 2006).
As of September 30, 2016, Burger King reported it had 15,243 outlets in 100 countries. Of these, 47.5% are in the United States and 99.5% are privately owned and operated, with its new owners moving to an almost entirely franchised model in 2013. While it may be tempting for big food