Retail:

Home Depot (NYSE:HD) has been one of the best-performing retailers in the market over the
last decade. The company's strong position in home-improvement products, an area that's been
mostly protected from the disruption of e-commerce, and a housing boom have helped drive the
stock up more than 600% over the last 10 years. That impressive performance has come almost
entirely because of profit growth as the stock's price-to-earnings multiple has held steady.

Fundamental Analysis: (In millions except percentages and per share data)

Ratios Data Result

ROE 11,121/1,454 764.86%
EPS 11,121/1,137 $9.78
ROA 11,121/44,529 24.97%
Current Ratio 18,933/16,194 1.17
Debt to Equity Ratio 43,075/1,454 29.63

Return on Equity: ROE means how much earnings get by using shareholders equity. Home
Depot has 764.86% ROE, which means for every $1 of common stock equity earnings will be
7.6486.

Earnings per share: Earnings per share (EPS) is calculated as a company's profit divided by the
outstanding shares of its common stock. The resulting number serves as an indicator of a
company's profitability. EPS of HD is $9.78.

Return on Asset: Return on assets (ROA) is an indicator of how profitable a company is relative
to its total assets. ROA gives a manager, investor, or analyst an idea as to how efficient a
company's management is at using its assets to generate earnings. HDs’ ROA=24.97%.
Current Ratio: The current ratio is a liquidity ratio that measures a company's ability to pay
short-term obligations or those due within one year. It tells investors and analysts how a
company can maximize the current assets on its balance sheet to satisfy its current debt and other
payables. For every $1, HD has $1.17 available to pay for the debt.

Debt to Equity Ratio: This ratio is used to evaluate a company’s financial leverage. The debt to
equity ratio of HD is 29.63. It means the liabilities are 2963% of shareholders equity.

Walmart's (WMT) success is the stuff of legend. But there is no mystique at the core of its
mammoth success. Wal-Mart’s ability to provide customers with "everyday low prices" and its
presence as an economic and political force of gigantic size and influence, is the result of a
process that was built on some core principles and procedures. Looking at Walmart's history and
present operations helps investors understand the methodology that enables this sizeable chain to
do what it's known to do best – sell cheap.

Fundamental Analysis: (In millions except percentages and per share data)

Ratios Data Result

ROE 9,862/77,869 12.66%
EPS 9,862/2,995 $3.29
ROA 9,862/204,522 4.82%
Current Ratio 59,664/78,521 0.76
Debt to Equity Ratio 123,700/77,869 1.59

Return on Equity: Walmart has 12.66% ROE. It means for every $1 common stock equity
earnings will be 0.1266 cents.

Earnings per share: Walmart has $3.29 EPS.

Return on Asset: ROA is an important measurement because it provides an idea of the
underlying nature of a business in a way that differs from return on equity (ROE). Its value
varies by sector and industry. Walmart ROA=4.82%.

Current Ratio: Liquidity ratios tell you about a company’s ability to meet all its financial
obligations, including debt, payroll, payments to vendors, taxes, and so on. For every $1
Walmart has 0.76 cents available to pay for the debt.

Debt to Equity Ratio: Walmart has 1.59 debt to equity ratio. It means the liabilities are 159%
of shareholders equity.

Kroger announced the company’s Board of Directors has approved a $1 billion share repurchase
program, replacing the existing authorization that has approximately $546 million remaining.
Kroger reconfirmed its 2019 guidance on identical sales, adjusted operating profit, adjusted
earnings per diluted share and alternative profit streams. The company also set financial target
for 2020. Kroger is targeting total shareholder return of between 8% and 11% beyond 2020, the
company said. This will be driven by 3% to 5% growth from improved earnings, and growth in
the company’s free cash flow payout rate through a combination of share repurchases and
dividends. This range excludes any potential change in its price to earnings multiple, and the
optionally for additional growth beyond 2020 created through strategic partnerships.

Fundamental analysis: (In millions except percentages and per share data)
 Ratios Data Result
ROE 3,110/6,931 44.87%
EPS 3,110/810 $3.84
ROA 3,110/37,197 8.36%
Current Ratio 11,117/14,197 0.78
Debt to Equity Ratio 30,292/6,931 4.37

Return on Equity: Kroger has 44.87% ROE. It means for every $1 common stock equity
earnings will be 0.4487 cents.

Earnings per Share: Earnings per share is a calculation that shows how profitable a company is
on a shareholder basis. Kroger has $3.84 EPS.

Return on Asset: Return on assets is a profitability ratio that provides how much profit a
company is able to generate from its assets. So Kroger has 8.36% ROA.

Current Ratio: This company current ratio is 0.78, which means for every $1 it has 0.78 cents
available to pay for the debt.

Debt to Equity Ratio: The debt to equity ratio of Kroger is 4.37. It means the liabilities are
437% of shareholders equity.

Reference:
Hyde, R. R. (2019, December 4). The Momentum, And Methods, Behind Walmart's Model.
Retrieved from https://www.investopedia.com/articles/personal-finance/011815/how-walmart-
model-wins-everyday-low-prices.asp#ixzz57yJQ09bE.

Browne, M. (2019, November 5). Kroger projects momentum for same-store sales, improved
profit for 2020. Retrieved from https://www.supermarketnews.com/retail-financial/kroger-
projects-momentum-same-store-sales-improved-profit-2020.

Appendix:
 THE HOME DEPOT, INC.
CONSOLIDATED BALANCE SHEETS
February 3, January 28,
in millions, except per share data 2019 2018
Assets
Current assets:
Cash and cash equivalents $ 1,778 $ 3,595
Receivables, net 1,936 1,952
Merchandise inventories 13,925 12,748
Other current assets 890 638
Total current assets 18,529 18,933
Net property and equipment 22,375 22,075
Goodwill 2,252 2,275
Other assets 847 1,246
Total assets $ 44,003 $ 44,529

Liabilities and Stockholders' Equity

Current liabilities:
Short-term debt $ 1,339 $ 1,559
Accounts payable 7,755 7,244
Accrued salaries and related expenses 1,506 1,640
Sales taxes payable 656 520
Deferred revenue 1,782 1,805
Income taxes payable 11 54
Current installments of long-term debt 1,056 1,202
Other accrued expenses 2,611 2,170
Total current liabilities 16,716 16,194
Long-term debt, excluding current installments 26,807 24,267
Deferred income taxes 491 440
Other long-term liabilities 1,867 2,174
Total liabilities 45,881 43,075

Common stock, par value $0.05; authorized: 10,000 shares; issued: 1,782 at
February 3, 2019 and 1,780 shares at January 28, 2018; outstanding: 1,105
shares at February 3, 2019 and 1,158 shares at January 28, 2018 89 89
Paid-in capital 10,578 10,192
Retained earnings 46,423 39,935
Accumulated other comprehensive loss (772) (566)
Treasury stock, at cost, 677 shares at February 3, 2019 and 622 shares at January
28, 2018 (58,196) (48,196)
Total stockholders’ (deficit) equity (1,878) 1,454
Total liabilities and stockholders’ equity $ 44,003 $ 44,529

THE HOME DEPOT, INC.

CONSOLIDATED STATEMENTS OF
 EARNINGS
—————

Fiscal Fiscal Fiscal

in millions, except per share data 2018 2017 2016
Net sales $ 108,203 $ 100,904 $ 94,595
Cost of sales 71,043 66,548 62,282
Gross profit 37,160 34,356 32,313
Operating expenses:
Selling, general and administrative 19,513 17,864 17,132
Depreciation and amortization 1,870 1,811 1,754
Impairment loss 247 — —
Total operating expenses 21,630 19,675 18,886
Operating income 15,530 14,681 13,427
Interest and other (income) expense:
Interest and investment income (93) (74) (36)
Interest expense 1,051 1,057 972
Other 16 — —
Interest and other, net 974 983 936
Earnings before provision for income taxes 14,556 13,698 12,491
Provision for income taxes 3,435 5,068 4,534
Net earnings $ 11,121 $ 8,630 $ 7,957

Basic weighted average common shares 1,137 1,178 1,229

Basic earnings per share $ 9.78 $ 7.33 $ 6.47

Diluted weighted average common shares 1,143 1,184 1,234

Diluted earnings per share $ 9.73 $ 7.29 $ 6.45

Walmart Inc.
Consolidated Balance Sheets
    As of January 31,
(Amounts in millions)   2018   2017
ASSETS        
Current assets:        
Cash and cash equivalents   $ 6,756   $ 6,867
Receivables, net   5,614   5,835
Inventories   43,783   43,046
Prepaid expenses and other   3,511   1,941
Total current assets   59,664   57,689
Property and equipment:        
Property and equipment   185,154   179,492
Less accumulated depreciation   (77,479)   (71,782)
Property and equipment, net   107,675   107,710
Property under capital lease and financing obligations:        
Property under capital lease and financing obligations   12,703   11,637
Less accumulated amortization   (5,560)   (5,169)
Property under capital lease and financing obligations, net   7,143   6,468
         
Goodwill   18,242   17,037
Other assets and deferred charges   11,798   9,921
Total assets   $ 204,522   $ 198,825

         
LIABILITIES AND EQUITY        
Current liabilities:        
Short-term borrowings   $ 5,257   $ 1,099
Accounts payable   46,092   41,433
Accrued liabilities   22,122   20,654
Accrued income taxes   645   921
Long-term debt due within one year   3,738   2,256
Capital lease and financing obligations due within one year   667   565
Total current liabilities   78,521   66,928
         
Long-term debt   30,045   36,015
Long-term capital lease and financing obligations   6,780   6,003
Deferred income taxes and other   8,354   9,344
         
Commitments and contingencies    
         
Equity:        
Common stock   295   305
Capital in excess of par value   2,648   2,371
Retained earnings   85,107   89,354
Accumulated other comprehensive loss   (10,181)   (14,232)
Total Walmart shareholders' equity   77,869   77,798
Noncontrolling interest   2,953   2,737
Total equity   80,822   80,535
Total liabilities and equity   $ 204,522   $ 198,825

Walmart Inc.
Consolidated Statements of Income

    Fiscal Years Ended January 31,

(Amounts in millions, except per share data)   2018   2017   2016
Revenues:            
Net sales   $ 495,761   $ 481,317   $ 478,614
Membership and other income   4,582   4,556   3,516
Total revenues   500,343   485,873   482,130
Costs and expenses:            
Cost of sales   373,396   361,256   360,984
Operating, selling, general and administrative expenses   106,510   101,853   97,041
Operating income   20,437   22,764   24,105
Interest:            
Debt   1,978   2,044   2,027
Capital lease and financing obligations   352   323   521
Interest income   (152)   (100)   (81)
Interest, net   2,178   2,267   2,467
Loss on extinguishment of debt   3,136   —   —
Income before income taxes   15,123   20,497   21,638
Provision for income taxes   4,600   6,204   6,558
Consolidated net income   10,523   14,293   15,080
Consolidated net income attributable to noncontrolling interest   (661)   (650)   (386)
Consolidated net income attributable to Walmart   $ 9,862   $ 13,643   $ 14,694

             
Net income per common share:            
Basic net income per common share attributable to Walmart   $ 3.29   $ 4.40   $ 4.58
Diluted net income per common share attributable to Walmart   3.28   4.38   4.57
             
Weighted-average common shares outstanding:            
Basic   2,995   3,101   3,207
Diluted   3,010   3,112   3,217
             
Dividends declared per common share   $ 2.04   $ 2.00   $ 1.96

THE KROGER CO.

CONSOLIDATED BALANCE SHEETS
 February 2, February 3,
(In millions, except par amounts) 2019 2018
ASSETS
Current assets
Cash and temporary cash investments $ 429 $ 347
Store deposits in-transit 1,181 1,161
Receivables 1,589 1,637
FIFO inventory 8,123 7,781
LIFO reserve (1,277) (1,248)
Assets held for sale 166 604
Prepaid and other current assets 592 835
Total current assets 10,803 11,117

Property, plant and equipment, net 21,635 21,071

Intangibles, net 1,258 1,100
Goodwill 3,087 2,925
Other assets 1,335 984

Total Assets $ 38,118 $ 37,197

LIABILITIES
Current liabilities
Current portion of long-term debt including obligations under capital leases and
financing obligations $ 3,157 $ 3,560
Trade accounts payable 6,059 5,858
Accrued salaries and wages 1,227 1,099
Liabilities held for sale 51 259
Other current liabilities 3,780 3,421
Total current liabilities 14,274 14,197

Long-term debt including obligations under capital leases and financing obligations 12,072 12,029
Deferred income taxes 1,562 1,568
Pension and postretirement benefit obligations 494 792
Other long-term liabilities 1,881 1,706

Total Liabilities 30,283 30,292

Commitments and contingencies see Note 13

SHAREHOLDERS’ EQUITY

Preferred shares, $100 par per share, 5 shares authorized and unissued — —
Common shares, $1 par per share, 2,000 shares authorized; 1,918 shares issued in 2018
and 2017 1,918 1,918
Additional paid-in capital 3,245 3,161
Accumulated other comprehensive loss (346) (471)
Accumulated earnings 19,681 17,007
Common shares in treasury, at cost, 1,120 shares in 2018 and 1,048 shares in 2017 (16,612) (14,684)

Total Shareholders’ Equity - The Kroger Co. 7,886 6,931

Noncontrolling interests (51) (26)

Total Equity 7,835 6,905

Total Liabilities and Equity $ 38,118 $ 37,197

 THE KROGER CO.
CONSOLIDATED STATEMENTS OF
OPERATIONS

Years Ended February 2, 2019, February 3, 2018 and January 28, 2017

2018 2017 2016

(In millions, except per share amounts) (52 weeks) (53 weeks) (52 weeks)
Sales $ 121,162 $ 122,662 $ 115,337

Operating expenses
Merchandise costs, including advertising, warehousing, and
transportation, excluding items shown separately below 94,894 95,662 89,502
Operating, general and administrative 20,305 21,041 19,162
Rent 884 911 881
Depreciation and amortization 2,465 2,436 2,340

Operating profit 2,614 2,612 3,452

Other income (expense)

Interest expense (620) (601) (522)
Non-service component of company-sponsored pension plan costs (26) (527) (16)
Mark to market gain on Ocado securities 228 — —
Gain on sale of business 1,782 — —

Net earnings before income tax (benefit) expense 3,978 1,484 2,914

Income tax (benefit) expense 900 (405) 957

Net earnings including noncontrolling interests 3,078 1,889 1,957

Net loss attributable to noncontrolling interests (32) (18) (18)

Net earnings attributable to The Kroger Co. $ 3,110 $ 1,907 $ 1,975

Net earnings attributable to The Kroger Co. per basic common share $ 3.80 $ 2.11 $ 2.08

Average number of common shares used in basic calculation 810 895 942

Net earnings attributable to The Kroger Co. per diluted common share $ 3.76 $ 2.09 $ 2.05

Average number of common shares used in diluted calculation 818 904 958