Yankee Candle Company Essay Example
Yankee Candle Company
History
A simple gift from a young man to his mother is responsible for the birth of a successful company. That young man was Mike Kittredge he melted crayons to create a candle for his mother for Christmas. The creation was an instant hit with friends and neighbors and he found it difficult to keep up with the demand. The result of that simple gift to his mother turned into a multimillion dollar company. In 1969, a young man made a special gift for his mother; in 1999 the Yankee Candle Company became a publicly traded company on the New York Stock Exchange (NYSE). The company presently owns over 17,500 locations worldwide. (Hoovers, 2007) The Yankee Candle Company is quite an accomplishment from the meager beginnings in the kitchen of Mike Kittredge's parents South Hadley Massachusetts home. The candles produced by this company are known for their longevity and there unique aromas that permeate the space in which they are burned. In some homes the candles have become a tradition. Macintosh Apple scent burnt in autumn, Pumpkin Pie at Thanksgiving or Mistletoe at Christmas, what ever the occasion or mood Yankee Candle has a scent that is appropriate. It is almost impossible to believe that a melted box of crayons started it all. Uniqueness is what differentiates the Yankee Candle Company from its competitors. Their three top competitors are Bath & Body Works, Blyth, and Lancaster County. The top three competitors do not specialize in candles but offer a plethora of other products to the selective consumer.
Ratios
The following are the computations of the financial ratios for Yankee Candle Company, Inc. All figures are compiled from fiscal reports from 2006 and 2005.
The current ratio: current assets/ current liabilities = current ratio 1,833,683/104,104= 17.61
Inventory turnover ratio cost of goods sold/ average inventory held 72,981/77,399.5= .9
Accounts receivable turnover credit sales/ average
History
A simple gift from a young man to his mother is responsible for the birth of a successful company. That young man was Mike Kittredge he melted crayons to create a candle for his mother for Christmas. The creation was an instant hit with friends and neighbors and he found it difficult to keep up with the demand. The result of that simple gift to his mother turned into a multimillion dollar company. In 1969, a young man made a special gift for his mother; in 1999 the Yankee Candle Company became a publicly traded company on the New York Stock Exchange (NYSE). The company presently owns over 17,500 locations worldwide. (Hoovers, 2007) The Yankee Candle Company is quite an accomplishment from the meager beginnings in the kitchen of Mike Kittredge's parents South Hadley Massachusetts home. The candles produced by this company are known for their longevity and there unique aromas that permeate the space in which they are burned. In some homes the candles have become a tradition. Macintosh Apple scent burnt in autumn, Pumpkin Pie at Thanksgiving or Mistletoe at Christmas, what ever the occasion or mood Yankee Candle has a scent that is appropriate. It is almost impossible to believe that a melted box of crayons started it all. Uniqueness is what differentiates the Yankee Candle Company from its competitors. Their three top competitors are Bath & Body Works, Blyth, and Lancaster County. The top three competitors do not specialize in candles but offer a plethora of other products to the selective consumer.
Ratios
The following are the computations of the financial ratios for Yankee Candle Company, Inc. All figures are compiled from fiscal reports from 2006 and 2005.
The current ratio: current assets/ current liabilities = current ratio 1,833,683/104,104= 17.61
Inventory turnover ratio cost of goods sold/ average inventory held 72,981/77,399.5= .9
Accounts receivable turnover credit sales/ average