EX 6-31 Ratio of net sales to assets
Kroger, a national supermarket chain, reported the following data (in millions) in its financial statements for the year ended January 31, 2009:
|
Total revenue |
$76,000 |
|
Total assets at end of year |
23,211 |
|
Total assets at beginning of year |
22,299 |
a. Compute the ratio of net sales to assets for 2009. Round to two decimal places.
b. Tiffany & Co. is a large North American retailer of jewelry, with a ratio of net sales to assets of 0.95. Why would Tiffany’s ratio of net sales to assets be lower than that of Kroger?