Unit 4 Whole Foods Company

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One of the ratios impacted by the new store would be profit margin ratio. This ratio measures net income earned with each dollar made in sales, so this ratio can either increase or decrease depending if the store is profitable or not. The ROA will measure how efficient all the assets are being use to make a higher profit for 365. ROE will calculate how much profit is made from the investment of the shareholders, which is needed for the construction of the stores. The current ratio will show the liquidity of the company and how fast they will be able to pay their debt encounter during the expansion. Finally, there is total assets turnover, which shows how efficient managers are using assets to generate revenue. It will allow Whole foods to

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