Essay about Ratio Analysis Memo Kudler Foods

Liquidity ratios measure the capability of a business to cover expenses and meet its current and long-term responsibility. These ratios are imperative in order to keep the business alive. Lending institutions are typically unwilling to loan money to a business that finds itself in a cash flow jam, because that is often a sign of poor management. The liquidity is measured with 3 different ratios; current ratio, turnover – of – cash ratio and debt- to equity ratio.

Next the evaluation of current and future opportunities available to Kudler Fine Foods would want to be evaluated. These opportunities could include technology upgrades, market positioning, diversification, or any other related areas. During this evaluation it might be useful to gather information from industry experts or consultants (MacVicar, 1996).

Using benchmarked data, Kudler Fine Foods can "reduce costs of ordering foods and minimize the amount of food to be stored, while also having a zero stock out policy…[and develop] a supplier relations program…" (Apollo Group 2, 2005) These initiatives will reduce Kudler Fine Foods ' internal costs which can be passed on to the consumers.

Kudler is planning to have an annual revenue increase by 5% within 12 months breaking it down to four categories. A quarter percent gain is anticipated in the projects launch as well as the training of employees’. Profits will increase by a half of a percent during the assessment and alteration of the project with the promotion of the Frequent Shopper Program taking place at this time as well. In each phase of the development customer satisfaction will increase so will revenue, which will lead to an overall increase of 4.75% (Kudler Fine Foods. (2004). Apollo.).

Video presentations will be presented from the vendor of the NCR RealPOS 30 terminals. The video presentations will examine the use of the terminals and separate video presentations should be available for the cashiers, the management team, and the computer support specialists. The video presentations should cover hands-on use of the terminals depending on the employee and the employees need.

Kudler Fine Foods currently has three locations-La Jolla, Del Mar, and Encinitas-throughout San Diego, with a fourth location possibly in the company’s near future. The company maintains several systems including strategic plan, legal, finance and accounting, sales and marketing, human resources, and operations. This paper is an analysis of the marketing system for Kudler Fine Foods, and touches briefly on the company’s background and strategic plan.

Kudler Fine Foods has several issues that can be analyzed and broken down regarding how the problem started. From finding the root of the problem, the gourmet market now has several issues to debate. The issues, with clearly stated situations above, can be directed into positive goals with a problem-solving approach for each. These goals are all attainable to move the company forward in a positive tier for financial success.

Liquidity ratios measure how well a company is able to meet its short term obligations without relying on selling inventory (David, Fred). Starbucks three main components in these current categories are cash, inventory and accrued liabilities. The current ratio indicates that if Starbucks needed to liquidate they would be able to cover their current liabilities. They would be unable to meet their outside obligations without selling off inventory to

Liquidity ratio. The firm’s liquidity shows a downward trend through time. The current ratio is decreasing because the growth in current liabilities outpaces the growth of current assets. The quick ratio is also declining but not as fast as the current ratio. From 1991 to 1992, it only decreased 0.35 units while the current ratio decreased 0.93 units. Looking at the common size balance sheet, we also see that the percentage of inventory is growing from 33% to 48% indicating Mark X could not convert its inventory to cash.

Liquidity ratios measure the short term ability of a company to pay its obligations and meet their needs for maintaining cash. According to Cagle, Campbell & Jones (2013), “A good assessment of a company’s liquidity is important because a decline in liquidity leads to a greater risk of bankruptcy” (p. 44). Creditors, investors and analysts alike are all interested in a company’s liquidity. After computing liquidity

To facilitate the valuation aspect of the analysis, free-cash-flow forecasts are provided in case Exhibit 10 for Hershey as a stand-alone entity. Most students should find it easy to calculate a value for Hershey using the discounted-cash-flow (DCF) method and industry-comparable multiples, which also are provided. As with any valuation case, students must make judgments about the appropriate capital structure, the weighted average cost of capital (WACC), sales growth, and the terminal growth rate. Once students have explored the value drivers for Hershey though sensitivity analysis, they may then evaluate the bids from both Nestlé S.A.–Cadbury Schweppes PLC (NCS) and the Wm. Wrigley Jr. Company. They will want to examine whether the bids are fair from the perspective of HFC shareholders and whether the synergies assumed by the bidders in their offer prices are reasonable.

The historical financial statements can tell us a lot about the financial health and condition about Krispy Kreme or any other company. By utilizing some key financial ratios we can determine how the company compares year over year as well as against competitors in many ?different dimensions. These dimensions include short term solvency, or its ability to meet its immediate obligations, long term solvency, or its ability to manage debt leverage, asset management, or its ability to

In January of 2000, Krispy Kreme reported a current ratio of 1.39 or 41,038CA/29,586CL. The current ratio 1.39>1 indicates the company has high liquidity and is able to immediately pay off short-term liabilities. Over the next four years the company’s current ratio continues to increase, as does the company’s quick ratio. The quick ratio allows creditors to compare the current assets minus inventory, which is often the least liquid asset, over current liabilities. As a whole, the company appears to be handling the short-term bills efficiently and maintaining a fairly healthy liquidity of assets. This is likely due to the increase in assets (stores, equipment, inventory, etc). The increased liquidity ratios seem much healthier than the other firms.

Landry’s has become a successful company over the years because the customers enjoy the specialty items that they serve on their menu. It has become a company that we enjoy taking our families out to dinner, celebrating birthday parties and certain special events. However, this paper will complete the financial analysis for the reported years of 2002 and 2003. Upon review of the financial statements will find out the financial performance of Landry’s and show the analysis. The ratio analysis of Landry’s will be reviewed as well and in details discussed from their

selected financial ratios computed from fiscal year 2011 balance sheets and income statements for 13 companies from the following industries:              airline railroad pharmaceuticals commercial banking photographic equipment, printing, and sales discount general-merchandise retail electric utility fast-food restaurant chain wholesale food distribution supermarket (grocery)