Company’s Revenues, Profits, and Costs

Whole Foods is doing substantially well in the field of accounting. Their revenues and profits have been increasingly rising higher within the past four years. Their revenue has increased from $8.03 billion in 2009 to 10.11 billion in 2011. This calculates to be an approximately $1.04 billion increase in revenues a year. Better yet, the data shown by Bloomberg Businessweek reveals that revenue is also increasing at an increasing rate. This means that revenue is not only increasing per year but it is increasing by a higher margin of price after each passing year. From 2009 to 2010, revenue increased by $970 million, while from 2010 to 2011, revenue increased by $1.11 billion. This is equal to about a 14% increase in revenue after just two years. Eventually, as all of this information is put together, the average $1.04 billion increase a year could turn into a $1.18 billion increase a year and then $1.35 billion just after two extra years, assuming the revenue will keep increasing at this rate. Profit is experiencing the same trends as the revenue of this company. In 2009, profit was seen to be $2.76 billion and increased progressively to $3.54 billion in 2011. This is an average increase of $39 million over this 2 year period. Even though small, profit has been increasing at an increasing rate as well. Its total percent increase per year is 7%. As profit and revenue rise, cost, unfortunately, has been increasing as well. On the bright side, revenue has been increasing at such a high rate that it overcomes the increasing costs totaled in the profit. In the years from 2009 to 2011, costs averaged roughly $5.9 billion. This is not perfect, but as long as revenue keeps increasing as it seems to be, the profit should keep rising.

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