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Balance sheet analysis for Loblaw’s last 5 years
Working Capital Position: The current position of the company has actually improved. There is a stronger ability to convert current assets to cover current liabilities than was the case five years ago.
Working Capital Position: The current position of the company has actually improved. There is a stronger ability to convert current assets to cover current liabilities than was the case five years ago.
| In Millions of CAD (except for per share items) | As of 2006-12-30 | As of 2005-12-31 | As of 2005-01-01 | As of 2004-01-03 | As of 2002-12-28 | As of 2001-12-29 |
| Cash & Equivalents | 669.00 | 916.00 | 549.00 | 618.00 | 823.00 | 575.00 |
| Short Term Investments | 327.00 | 4.00 | 275.00 | 378.00 | 304.00 | 426.00 |
| Cash and Short Term Investments | 996.00 | 920.00 | 824.00 | 996.00 | 1,127.00 | 1,001.00 |
| Accounts Receivable – Trade, Net | 728.00 | 656.00 | 665.00 | 588.00 | 571.00 | 472.00 |
| Receivables – Other | - | - | - | - | - | - |
| Total Receivables, Net | 791.00 | 659.00 | 665.00 | 588.00 | 571.00 | 472.00 |
| Total Inventory | 2,037.00 | 2,020.00 | 1,821.00 | 1,746.00 | 1,702.00 | 1,512.00 |
| Prepaid Expenses | 39.00 | 30.00 | 32.00 | 31.00 | 24.00 | 28.00 |
| Other Current Assets, Total | 85.00 | 72.00 | 81.00 | 113.00 | 68.00 | 73.00 |
| Total Current Assets | 3,948.00 | 3,701.00 | 3,423.00 | 3,474.00 | 3,492.00 | 3,086.00 |
| Property/Plant/Equipment, Total – Gross | 11,908.00 | 11,212.00 | 10,046.00 | 8,981.00 | 7,857.00 | 6,898.00 |
| Goodwill, Net | 794.00 | 1,587.00 | 1,621.00 | 1,607.00 | 1,599.00 | 1,599.00 |
| Intangibles, Net | - | - | - | - | - | - |
| Long Term Investments | 195.00 | 194.00 | 323.00 | - | - | 285.00 |
| Other Long Term Assets, Total | 494.00 | 494.00 | 469.00 | 713.00 | 432.00 | 124.00 |
| Total Assets | 13,486.00 | 13,761.00 | 12,949.00 | 12,184.00 | 11,110.00 | 10,025.00 |
| Accounts Payable | - | - | - | - | - | - |
| Accrued Expenses | - | - | - | - | - | - |
| Notes Payable/Short Term Debt | 648.00 | 466.00 | 501.00 | 641.00 | 533.00 | 286.00 |
| Current Port. of LT Debt/Capital Leases | 27.00 | 161.00 | 216.00 | 106.00 | 106.00 | 81.00 |
| Other Current liabilities, Total | - | 0.00 | 109.00 | 140.00 | 179.00 | 138.00 |
| Total Current Liabilities | 3,273.00 | 3,162.00 | 3,133.00 | 3,158.00 | 3,154.00 | 2,796.00 |
| Long Term Debt | 4,212.00 | 4,194.00 | 3,935.00 | 3,956.00 | 3,420.00 | 3,333.00 |
| Capital Lease Obligations | - | - | - | - | - | - |
| Total Long Term Debt | 4,212.00 | 4,194.00 | 3,935.00 | 3,956.00 | 3,420.00 | 3,333.00 |
| Total Debt | 4,887.00 | 4,821.00 | 4,652.00 | 4,703.00 | 4,059.00 | 3,700.00 |
| Deferred Income Tax | 234.00 | 237.00 | 184.00 | 146.00 | 68.00 | 49.00 |
| Minority Interest | 12.00 | 11.00 | 0.00 | - | - | - |
| Other Liabilities, Total | 314.00 | 271.00 | 283.00 | 234.00 | 344.00 | 278.00 |
| Total Liabilities | 8,045.00 | 7,875.00 | 7,535.00 | 7,494.00 | 6,986.00 | 6,456.00 |
| Redeemable Preferred Stock, Total | - | - | - | - | - | - |
| Preferred Stock – Non Redeemable, Net | - | - | - | - | - | - |
| Common Stock, Total | 1,196.00 | 1,192.00 | 1,192.00 | 1,194.00 | 1,195.00 | 1,194.00 |
| Additional Paid-In Capital | - | - | - | - | - | - |
| Retained Earnings (Accumulated Deficit) | 4,245.00 | 4,694.00 | 4,222.00 | 3,496.00 | 2,929.00 | 2,375.00 |
| Treasury Stock – Common | - | - | - | - | - | - |
| Other Equity, Total | - | - | - | - | - | - |
| Total Equity | 5,441.00 | 5,886.00 | 5,414.00 | 4,690.00 | 4,124.00 | 3,569.00 |
| Total Liabilities & Shareholders’ Equity | 13,486.00 | 13,761.00 | 12,949.00 | 12,184.00 | 11,110.00 | 10,025.00 |
| Shares Outs – Common Stock Primary Issue | - | - | - | - | - | - |
| Total Common Shares Outstanding | 274.17 | 274.05 | 274.26 | 274.83 | 276.02 | 276.25 |
Quick Ratio: Short term liquidity has hovered around .65 for a several years and now stands at .58, which means Loblaw could immediately cover 58 cents of every short term dollar owed. It would be preferred to see 1 for 1 but this is not a particularly dangerous situation in view of the fact the grocery industry depends upon quick inventory turns and therefore enough inventory could be readily converted to cover.
Debt to Equity Ratio: The amount of equity being used to finance assets presently stands at 1.00 to 1.47 and has stayed around 1.00 to 1.35 over the past five years. This indicates increased borrowing to finance growth. The amount of growth in assets that is being covered off by shareholder equity is good enough to belay any fears over the present increase, especially considering the newly stated cut-backs to expansion until the present structure is operating with better efficiency.
Return on Equity: Even in the current down year, return on equity stands at 12.73% which is a figure above the standard and widely desirable 10%. In the past five years this return has been as high as 17.8% and not below 14.65%. This is a solid strength.