Week 2 Case Analysis Essay

Submitted By jeff10e
Words: 477
Pages: 2
Open Document
Jeff Tenney

KRISPY KREME DOUGHNUTS, INC.

Study Questions

1. What can the historical income statements (case Exhibit 1) and balance sheets (case Exhibit 2) tell you about the financial health and current condition of Krispy Kreme Doughnuts, Inc.?

The income statement and balance sheets show that Krispy Kreme has been steadily increasing revenues from 2000 to 2004. Total revenues have increased from $220,243 in 2000 to $665,592 in 2004. Additionally net income has exploded from $5,956 in 2000 to $57,087 in 2004; the financial health of the company is stable and the company is improving substantially from quarter to quarter. Furthermore, the company also experienced increased in total assets, liabilities, accrued expenses, equity, and retained earnings. These are all key indicators of long-term company viability.

2. What questions do the time series of ratios in case Exhibit 7 raise? What questions do the ratios on peer firms in case Exhibits 8 and 9 raise? Is Krispy Kreme financially healthy at year-end 2004?

The ratios suggest that Krispy Kreme is continuing to grow into a stable company. The data shows that Krispy Kreme has encouraging liquidity ratios that improve over the years. The company has continues to increase debt however this is not uncharacteristic of a new, rapidly growing company. The question that should be raised here is that if the company is continuing to improve why are equity returns so slow moving. Compared to peers, Krispy Kreme has one of the lowest inventory turnover ratios; significantly lower debt, more receivables, higher operating expenses, and higher profit margins. However, due to end of period losses and decreased stock market activities, the company could be classified as unhealthy year ending 2004.

3. In light of your answer to the previous, what accounts for the firm’s recent share price decline? (see Exhibits 4 and 5)

The recent share price declines are most likely attributed to stockholders losing confidence in
Show More

Related Documents: Week 2 Case Analysis Essay

Psy 270 Week 2 Case Analysis Paper

The personnel recruiting/development program has encountered a complex situation with the program member John. This memo will establish the current situation, discuss possible solutions, and give recommendations for future action. John was the last person to be selected for his cohort due to mixed results in the application process. John submitted a strong written application and a promising interview, but his school records and performance on the screening assessments were barely acceptable. John…

Words 523 - Pages 3

Managing Strategy And Change

Module Guide MANAGING STRATEGY AND CHANGE BBM-7-MSC Faculty of Business 2014/2015 MBA (Level 7) Table of Contents 1. Module Details 3 2. Short Description 3 3. Aims of the Module 3 4. Learning Outcomes 3 4.1 Knowledge and Understanding 3 4.2 Intellectual Skills 4 4.3 Practical Skills 4 4.4 Transferable Skills 4 5. Assessment of the Module 4 6. Feedback 5 7. Introduction to Studying the Module 5 7.1 Overview of the Main Content 5 7.2 Overview of Types of Classes 6 7.3 Importance of…

Words 3063 - Pages 13

Hcmg730 Full Course (All Discussion, Reflections, Case Analysis and Final Assessment) Essay

HCMG730 full course (all discussion, reflections, case analysis and final assessment) Click Link Below To Buy: http://hwcampus.com/shop/hcmg730-full-course/ Week 1 Discussion Question 1 “Because Congress passed ARRA after passing HIPAA, any conflicting provisions between the two statues will be governed by the provisions of ARRA. The two statues can be reconciled because of a provision in ARRA that states any HIPAA statutory provision or regulation remains in effect to the extent that it…

Words 2080 - Pages 9

BUS 698 Week 3 DQ 2 Time and Logistics Essay

BUS 698 Week 3 Discussion Question 2 Time and Logistics shows the solutions to the following problems: Why is time important to competitive advantage? Indentify and explain six key contributions that speed can make to logistics and supply chain strategy. Document your sources. Respond to at least two of your fellow classmates Business - General Business BUS 698 Week 1 Assignment Case Analysis BUS 698 Week 1 DQ 1 Alignment BUS 698 Week 1 DQ 2 Dell BUS 698 Week 2 Assignment…

Words 530 - Pages 3

Business Admin Essay

Spring 2015 BUAD 301 Monday 4:00 to 6:45 pm Professor: Colin S. Innes Office: Mihaylo 4175 Office Hours: MTWR 9:45 to 10:45 am e-mail: cinnes@fullerton.edu Course Prerequisites: Grade of C or above in English 101 and BUAD 201, or their equivalents. You may not be enrolled in BUAD 201 and BUAD 301 simultaneously. Course Description: In BUAD 301 you will build upon skills acquired and developed in BUAD 201. Using these basic, but crucial, communication…

Words 2890 - Pages 12

Acc 281 Week 5 Final Paper

ACC 281 WEEK 5 FINAL PAPER To purchase this visit here: http://www.nerdypupil.com/product/acc-281-week-5-final-paper/ Contact us at: nerdypupil@gmail.com ACC 281 WEEK 5 FINAL PAPER Focus of the Final Paper Write an 8 to 10 page Case Analysis of the following article (which can be found in the Ashford Online ProQuest database): Souza, M. & McCarty, B. (2007). From bottom to top: How one provider retooled its collections [electronic version]. Healthcare Financial Management, 61(9), 67-73.…

Words 1014 - Pages 5

ACC 227 Entire Course Essay

ACC 227 Week 1 Appendix B.doc ACC 227 Week 1 DQ 1.doc ACC 227 Week 1 DQ 2.doc ACC 227 Week 2 Assignment.doc ACC 227 Week 2 Checkpoint.xls ACC 227 Week 3 APPENDIX C FORTUNE.doc ACC 227 Week 3 DQ 1.doc ACC 227 Week 3 DQ 2.doc ACC 227 Week 4 Assignment.xls ACC 227 Week 4 Checkpoint.xls ACC 227 Week 5 Checkpoint.xls ACC 227 Week 5 DQ 1.doc ACC 227 Week 5 DQ 2.doc ACC 227 Week 6 Appendix.xls ACC 227 Week 7 Checkpoint.doc ACC 227 Week 7 DQ 1.doc ACC 227 Week 7 DQ 2.doc ACC 227 Week 8 Assignment…

Words 758 - Pages 4

Guide: Marketing and Kellstadt Graduate School Essay

subject line of all emails to ensure I find your email in case it is caught by spam control) Course Objectives: 1. Develop an understanding of the fundamental concepts in Marketing. 2. Develop a functional understanding of both macro-marketing and micro-marketing environments. 3. Gain an understanding of products and services from a marketer’s and a consumer’s or other business perspective. 4. Learn basic marketing strategies including SWOT analysis and various marketing model constructs. 5. Gain an understanding…

Words 1925 - Pages 8

Biomes 2015 Essay

This unit will be studied over 8 weeks covering the following essential questions. Biomes: 1. What is a biome? 2. What are the world’s biomes? 3 Where are the world's terrestrial biomes? Biomes 2015 Page 1 3 weeks 2. What are the world’s biomes? 3. Where are the world's terrestrial biomes…

Words 587 - Pages 3

ACC 227 Entire Course Essay

ACC 227 Week 1 Appendix B.doc ACC 227 Week 1 DQ 1.doc ACC 227 Week 1 DQ 2.doc ACC 227 Week 2 Assignment.doc ACC 227 Week 2 Checkpoint.xls ACC 227 Week 3 APPENDIX C FORTUNE.doc ACC 227 Week 3 DQ 1.doc ACC 227 Week 3 DQ 2.doc ACC 227 Week 4 Assignment.xls ACC 227 Week 4 Checkpoint.xls ACC 227 Week 5 Checkpoint.xls ACC 227 Week 5 DQ 1.doc ACC 227 Week 5 DQ 2.doc ACC 227 Week 6 Appendix.xls ACC 227 Week 7 Checkpoint.doc ACC 227 Week 7 DQ 1.doc ACC 227 Week 7 DQ 2.doc ACC 227 Week 8 Assignment…

Words 734 - Pages 3