Supervalu, facing stiff competition in an already cut-throat grocery industry, recently made sweeping changes, bringing in a new CEO, Wayne Sales, to head up the company. It remains to be seen whether Sales can turn around Supervalu which is losing market share to organic grocers (Whole Foods) along with the big-box retailers such as Target and Wal-Mart. Here's a snippet from our report:
"The debt-to-equity ratio is very high at 98.25 and currently higher than the industry average, implying that there is very poor management of debt levels within the company. Along with this, the company's quick ratio of 0.26 clearly demonstrates the inability to cover short-term cash needs.
Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation."
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