Honor’s College Freeman Research Journal

Date of Award

Fall 5-2019

Document Type

Thesis

Degree Name

Bachelor of Arts

Department

Finance

First Advisor

Mayur Desai

Abstract

This Financial Analysis Report serves as a financial instrument taking an introspective view into two dynamic companies in the retail and grocery industry. Both Kroger and Costco Wholesale have consistently managed to maintain a reputable career as two large industrial organizations. These two companies have had a magnitude of success by their way of operations in such a competitive market. First, looking at each company's history and way of operations we discovered different strategies utilized between Kroger and Costco. Kroger, a supermarket chain centralizes on effective manufacturing and processing of foods sold in their various supermarkets. They experienced a 6.35% sales growth from 2017 and has become a national powerhouse in supermarkets. Utilizing financial principals attainted in classes I have taken in the business school, some key findings where we discovered that there is a close profit margins between the two companies, sustainability differences with operating profit margin and overall performance differences. Evaluating both companies with different rations, computations and accounting methods gave us the financial data needed to understand how each company operates and their areas of strengths and weaknesses.

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