Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Discuss the framework for financial statements analysis
Discuss the framework for financial statements analysis
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Kimberly-Clark (KMB) was founded in 1972 and manufactures and operates in the personal & health care paper products industry. They are a multi-billion dollar corporation, which is well-known for brands such as Huggies, Kleenex, and Scott paper towels. Kimberly Clark currently operates worldwide and services more than 140 countries. KMB two biggest competitors are consumer giants Procter & Gamble (PG) and Johnson & Johnson (JNJ). The financial evaluation of the personal care product industry and the competition within the industry allows Kimberly Clark to evaluate their competiveness. Utilizing the financial statement and ratios creates both short-term and long-term evaluation of risks and returns. Effectively using these Ratio analyses and comparisons will provide a business strategy to leverage efficient use of capital maximize return on investment, assets and equity and the ability to pay debt.
Financial Statements
Income Statement
First, the Income Statement summarizes the company’s revenue and expenses. Revenue is generated from the Kimberly Clark sales of goods to supermarkets, mass merchandisers, drugstores, department stores, and other retail outlets, as well as through distributors and e-commerce. The expenses incurred by Kimberly Clark include cost of goods sold, payroll, taxes and interest. The bottom line of the Income Statement is KMB’s net income. This number indicates to investors (and the Company financial department) whether the company is profitable. Kimberly-Clark net income had decreased from $1,884 million in 2009 to $1,591 million in 2011 to steadily improving from to 2,142 million in 2013.
Balance Sheet
Next, KMB will examine the balance sheet, which must perfectly balance the assets and liabilities...
... middle of paper ...
... in reduction of stock price due to investors seeking other stock options. A steady dividends payout ratio signifies a solid dividend policy by the company. Currently, Kimberly-Clark Annual Dividends per share is $3.24. Compared to one of the biggest competitors and industry leaders Proctor & Gamble $2.36, this is $0.88 higher. Furthermore, statistics show dividends payouts over the past three years, have seen annual growth, these factors are appealing to investors.
Conclusion
Overall, Kimberly Clark is operationally efficient. They have displayed their awareness to meet there short-term and long-term obligations. This bold well for both creditors and investors seeking to expand their portfolios as well as lend financial assistance to grow the business with limited risk. Kimberly Clark is effectively creating future opportunity while reducing financial risks.
Lowe’s Companies, Inc. is the fourteenth largest retailer in America, and overall the world’s second largest home improvement retailer. They are the 108th ranked corporation on the Fortune 500 top corporations list. With an impressive in store stock of 40,000 home improvement items on hand, ranging from lumber to Home décor items, plus an additional 400,000 home improvement items available through a special order program. Lowe’s provides a onetime stop for all home improvement needs, for both the Do-It-Yourselfer, and the ever-expanding market of the Commercial Business Customer.
... fashion industry. I believe through all of their marketing tactics and great leadership they will continue to thrive. Although I am not a customer of the brand, I have found great interest in completing this product to explore and expand and broaden my fashion in the brand. The company has had consistent sales increase and if it continues to utilize its business plans wisely, I believe it will continue to increase.
One look at the common-size income statements for these companies can tell a story. While Jones Apparel Group was lagging at year ended 1998, even with a restructuring charge on Liz Claiborne’s income statement, 1999 was a different story. Huge growth at Jones lead to revenues double of that one year ago while Liz, while increasing, was quickly falling behind. The growth for both of these companies continued into the year ended 2000, but Jones Apparel Grou...
Kmart has many competitive and environmental forces impacting the industry today. As all organizations do some or these forces are opportunities for them while others are threats to the organization. A few of the forces are their rivals or competitors, the substitutes that can be used, and the new entrants into the market.
The key issues for K-Mart strategies are finding the right cost level for an opportunity to be aggressive, and differentiating the product for consumer in terms of different consumer and different intangible product attributes. K-Mart and Sears should be combined with a new overall corporate competitive strategy using a cost focus. This may turn out to be the only sensible strategy, and the one which best describes the strategy adopted. Strategies of cost leadership and product differentiation are often described as if they were mutually exclusive you can either pursue one or the other, but not both.
Since January 31, 2004, the investment banker for Wal-Mart has been Moody's investor services. Wal-Mart plans to refinance for their long term dept with Mood's Investor Services and also a few other investment banking for other corporate purposes that are not mentioned. Wal-Mart also plans to bowwow 3.3 billion dollars and an additional 1.1 billion for commercial paper By January 31, 2004 the, Wal-Mart had already established a 5.1 billion dollar lines of credits from 77 different banking industries and investment and used up approximately 145 million in the production of commercial paper. During the same time period Wal-Mart had 6 billion dollar debt of securities under a shelf registration regulation which derived from the SEC. Wal-Mart sold 1.25 billion in notes and maturity. The notes bear an interest of 4.1.25 % and mature by February 2011. The total quantity of notes allowed to be sold to is up to 4 billion.
Starbucks Financial Analysis Company Overview Starbucks is the world’s largest specialty coffee retailer, with more than 16,000 retail outlets in more than 35 countries. Starbucks owns more than 8,500 of its outlets, while licensees and franchisees operate more than 6,500 units worldwide, primarily in shopping centers and airports. The outlets offer coffee drinks and food items such as pastries and confections, as well as roasted beans, coffee accessories, teas and a line of compact discs. The company also owns the Seattle's Best Coffee and Torrefazione Italia coffee brands. In addition, Starbucks markets its coffee through grocery stores and licenses its brand for other food and beverage products.
Executive Summary Introduction Kimi Ford, a portfolio manager at NorthPoint Group, a mutual-fund management firm, was considering buying shares in the fund she manages, the NorthPoint Large-Cap Fund, with an emphasis on value investing. Ford held an analysts’ meeting to disclose its fiscal-year 2001 results and, most importantly, to communicate a strategy for revitalizing the company. Nike has maintained revenue of about $9 billion since 1997. However, its net income had fallen from almost $800 million to $580 million. Moreover, Nike’s market share in U.S. athletic shoes has fallen from 48% in 1997 to 42% in 2000.
As revealed by the SWOT analysis earlier Kmart has potential to pull itself out of its current position of facing closure. In order to exploit opportunities and counter threats Kmart needs to build on these competencies to strengthen its position and counter internal weaknesses against the single largest industry threat - increased competition in a mature market.
Currently Nike is a well-positioned financially stable company. Nike is performing well in the categories of operating income, EBIT, Net income and EPS according to the financial statements.
Kellogg’s 1997 current ratio and acid test ratio when compared to 1996 figures indicates a positive trend considering liquidity. When compared to their peers Kellogg’s is not as liquid. The change that effected current liabilities the most was a decrease in current maturities of long-term debt of $290,000,000. Notes payable also decreased in 1997 to $368,600,000 from $652,600,000 in 1996. The increase in net working capital is also due mainly to reductions in current maturities of long-term debt as well as notes payable. Kellogg’s net working capital which is negative, when compared to peers illustrates that they are very illiquid.
Even Krispy Kreme's name brings a smile to people's faces. Question 2. I think Krispy Kreme's financial performance has been good. Since its initial public offering in April 2000 it has grown from 140 stores to one with 218 locations in 33 states and Canada. Preliminary results for fiscal year 2002 showed sales topping $621 million, up 39% from the previous year.
The main goal when defining the financial perspective was to answer the following question “If we succeed, how will we look to our stakeholders” (BSI 2009, ¶5). Scents & Things is a new business in the area and will need to look closely at the competition in order to increase the company’s market share. The company may have to initiate a way to find a competitor since the original location is in the heart of a small town. Additional areas the company needs to look at is customer satisfaction, asset utilization, Increase net revenues, Minimizing store production costs, Decrease in unit cost, Increase operating cash flow over prior year , And ultimately to achieve financial sustainability. The way to measure the above objectives is to monitor revenue growth, Operating costs, Earnings per share, Return on capital, Return on interest, and number of returned items in a way that will help management to direct the c...
Kraft Food Group has some areas in which it can grow. The company needs to fix its debt-to-assets and debt-to-equity ratios. The profit margin has been sporadic for the last five years. This is not a good trend for the company. This industry has some very external factors that can devastate the profit margin such as drought and other Asian market trends that can hurt the bottom line for this industry and company. Weather cannot be controlled. This company has a lot of different products which can be good by not putting all of your eggs in one basket approach. This can also lead the company to be stretched and pulled into many directions. The food industry can be a very up and down market because of external forces. Kraft Food Group has some problems with putting chemicals in some of their products that are now prohibited by the government. Kraft Food Group has food scientists, engineers and chemists to combat these chemicals and to develop new products and provide consistent quality of products so they can grow through sales and profits. Kraft Food Group has a high standard of quality and respect from its customers. Kraft Food Group could lose financially by food contamination. This company will continue to grow in the future if they continue to make improvements, make investments, and produce quality
After the inspection of Barnes & Noble investing and financing activities for 2014 as identified in the cash flows statement one of the two largest investing activities would be the purchases of property and equipment. Regrettably this is a deteriorating value. (Statement of Cash Flow page 35) The second largest investment activity would be the net decrease in other noncurrent assets. This figure indicates an improvement from previous years evaluated. (Statement of Cash Flow page 35) Further investigation into the two largest financing activities; indicate that proceeds from credit facility would be the largest activity of the two financing activities. With net proceeds from Microsoft Commercial Agreement financing arrangement indicating a steady increase over the past few years. Indications are an increase in inventory, signals that company has spent more money to purchase raw materials. A change in equipment, assets or investments relate to cash from investing. Thus, a conflict with the investing strategy appears to be employed with this investment causing a deteriorating performance. As for the net proceeds from Microsoft Commercial Agreement the inflation from the previous year doubled. This is definitely a sound financial strategy for Barnes & Noble to be employing. According to the 2014 Annual Report, cash flows provided by operating activities