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Loblaw’s 5 Year Income Statement
Gross Profit Margin (GPM): After consistently operating at a range of around 7.5% the company slipped to 6 in 2006. The grocery business is known for operating on tight margins so these are not low, however a 1.5% slip is large enough to cause concern.
| In Millions of CAD (except for per share items) | 52 weeks Ending 2006-12-30 | 52 weeks Ending 2005-12-31 | 52 weeks Ending 2005-01-01 | 53 weeks Ending 2004-01-03 | 52 weeks Ending 2002-12-28 | 52 weeks Ending 2001-12-29 |
| Revenue | 28,640.00 | 27,627.00 | 26,209.00 | 25,220.00 | 23,082.00 | 21,486.00 |
| Other Revenue, Total | - | - | - | - | - | - |
| Total Revenue | 28,640.00 | 27,627.00 | 26,209.00 | 25,220.00 | 23,082.00 | 21,486.00 |
| Cost of Revenue, Total | 26,917.00 | 25,582.00 | 24,084.00 | 23,360.00 | 21,425.00 | 20,035.00 |
| 1,7 | 2,7 | 3,7 | 4,7 | 5,7 | 6,7 | 7,7 |
| Gross Profit | 1,723.00 | 2,045.00 | 2,125.00 | 1,860.00 | 1,657.00 | 1,451.00 |
| Selling/General/Admin. Expenses, Total | - | - | - | - | - | - |
| Research & Development | - | - | - | - | - | - |
| Depreciation/Amortization | 590.00 | 558.00 | 473.00 | 393.00 | 354.00 | 358.00 |
| Interest Expense(Income) – Net Operating | - | - | - | - | - | - |
| Unusual Expense (Income) | 844.00 | 86.00 | 0.00 | - | - | - |
| Other Operating Expenses, Total | - | - | - | - | - | - |
| Total Operating Expense | 28,351.00 | 26,226.00 | 24,557.00 | 23,753.00 | 21,779.00 | 20,393.00 |
| Operating Income | 289.00 | 1,401.00 | 1,652.00 | 1,467.00 | 1,303.00 | 1,093.00 |
| Interest Income(Expense), Net Non-Operating | -259.00 | -252.00 | -239.00 | -196.00 | -161.00 | -158.00 |
| Gain (Loss) on Sale of Assets | - | - | - | - | - | - |
| Other, Net | - | - | - | - | - | - |
| Income Before Tax | 30.00 | 1,149.00 | 1,413.00 | 1,271.00 | 1,142.00 | 935.00 |
| Income After Tax | -218.00 | 749.00 | 968.00 | 845.00 | 728.00 | 563.00 |
Operating Profit Margin (OPM): Shows a distinct reason for concern about efficiency. A business such as this that depends upon high volume and tight control cannot afford to slip up.
Interest Coverage Ratio: The ability to cover debt interest has slipped each of the past five years from 10.2 times to a current 6.65 times. This is not a good sign but the company is still not in a danger level.
Five year revenue growth: 6.5%
Five year earnings growth: 15.7%
Dividend yield: 1.6%