Analysis
What is the true measure of a grocer’s profitability?
There’s solid ground to dismiss Nick McKim’s use of return on equity. But his audience is not wonky accountants – it’s disgruntled punters facing higher bills.
Jonathan ShapiroSenior reporterAccording to Greens senator Nick McKim, Woolworths has a return on equity of 26 per cent – and given it is more than twice that of the major banks, the supermarket giant’s shareholders are “making off like bandits”.
No wonder Woolworths chief executive Brad Banducci was pushing back. The reality is that McKim is right on the return on equity figure, and that it is roughly twice that of the big banks. But that does not mean Woolworths is making sky-high profits.
Subscribe to gift this article
Gift 5 articles to anyone you choose each month when you subscribe.
Subscribe nowAlready a subscriber?
Introducing your Newsfeed
Follow the topics, people and companies that matter to you.
Find out moreRead More
Latest In Retail
Fetching latest articles