EBITDA is consistently over the average of conventional grocers and has

Ebitda is consistently over the average of

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EBITDA is consistently over the average of conventional grocers and has exceeded the super centers and wholesalers showing that their profitability is more than comparable with the best companies. - The historical ratios do project a positive transition to matching the rapid growth that the Organic and Natural industry is making and the aim of Whole Foods is definitely to dominate that sector as well as competing and rapidly growing to match the sales of large supermarkets. The relatively stable sales growth compared to other industries and the solid EBITDA should mean that the company will bounce back from its poor quarter and perform well. Examine Exhibit 7 in detail. How important are each of the underlying financial assumptions in the Return on Invested Capital forecast? What assumptions (i.e., margins, asset turnover, growth) play the biggest role in driving the anticipated improvements in ROIC ? - I think the table in Exhibit 7 does have pointers that indicate the performance of Whole Foods. In year 2013, Whole Foods experiences a drop-in sales growth but the increase in the number of stores and EBITDA coupled with the overall increase in EPS show positive trends that can offset the drop-in earnings and its market price decline.

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