Sara Lee, Ratio Analyis

Answer Template: Individual Project Assignment

Part 1.

|Give a brief description of company: |
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|Sara Lee Corporation is engaged in manufacturing and marketing of branded products for consumers throughout the world focusing primarily |
|on the meats, bakery, and beverage categories. The company has presence in Americas, Europe, Africa, Asia, and Australia. Sara Lee is the|
|owner of approximately 25,000 active trademark registrations and applications. Sara Lee operates through five business divisions: |
|international beverage, North American retail, North American fresh bakery, North American foodservice, and international bakery. |
|(datamonitor,2010) |
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|Is the company financially healthy?: |
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|First I have calculated the financial ratios; financial ratios illustrate relationships between different aspects of a business’s operations.|
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|The acid test ratio provides a stricter definition of the company’s ability to make payments on current obligations. Ideally, this ration |
|should be 1:1. Sara Lee is doing okay, Sara Lee has a ratio for 2010 of