Krispy Kreme Financial Health
We are going to look at the financial health of Krispy Kreme, a company that is known for its donuts and coffee. The financial health of a company is very important to an investor to make sure that they are going to make a good investment. Being able to analyze the financial statements is a very important part of know how the company is doing, and Krispy Kreme share different statements to their management team so that they can keep the numbers going in the stores and making the profit. Using the different types of analyses to make sure that you have all the information that the investor and shareholders may want to know, meaning that you can sell the company to them so they are going to help support it all the way and they can make a profit off their investment.
“Krispy Kreme fiscal year is based on a fifty- two/fifty- three week year, the fiscal year ends on the Sunday closest to the last day in January.”1 When looking at the different years of their company you will be able to see that Krispy Kreme is growing, take the net income it has increased from 14,725 (thousands) in 2001 to 26,378 (thousands) in 2002 then continue to grow in 2003 to 33,478 (thousands), so you can see that it has a lot of growth and is trending high. The statements of cash flow being analyzed will help to make sure that the company is making the right choices with their money and it is all accounted for, there is always a chance that some numbers get inputted wrong and you want to make sure that the company is on the right trend. You can do a trend analyze on Krispy Kreme starting with 1999 to 2003 you will see that there was a great increase in revenue from 180,880 (thousands) in 1999 to making it up to 491,549 (thousands) in 2003. “The base period is 1999 and the trend percent is...
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