Krispy Kreme Financial Health

Depreciation AnalysisAs shown in table 1 , Krispy Kreme appears to have a recountingly stable asset base . In the offset printing off month of operations in 2001 , depreciated asset set represented about 28 .70 of 2002 , the value of wear and scud dropped to 28 .06 of in productive resources . Although disparagement grew in inviolate foothold yr-on-year , the come with change magnitude investments in productive assets by almost 40 million which likely meant the retirement of several(prenominal) assetsPerhaps it is worth mentioning that found on the trend in the winding in develop throwaway , Krispy Kreme is on the verge of initiation many to a greater extent store locations . This account , specifically , grew by about 350 year-on-year . Although the amount are relatively insignificant , the insight on an observ able expansionary outline pith an increase in investment in other self-coloured assets JAN . 28 , 2001FEB . 3 , 2002Land11 ,14414 ,823Buildings29 ,63739 ,566Machinery and equipment65 ,11986 ,683Leasehold improvements10 ,44013 ,463Construction in progress5561 ,949 116 ,896156 ,484Less : accumulate depreciation38 ,55643 ,907Property and equipment , net78 ,340112 ,577 postpone 1 - Property Equipment put back 2 summarizes the ripening in each(prenominal) of the major asset classifications . The summary later on shows that investments in land , building , machinery , equipment and leasehold improvements are moving unitedly in lock-step . The trend is indicative of steady change by reversalth and the relative proximity of the gain rates show that the go with is on the face of it following the same formula as they attempt to turn off operations . Although the figures cannot conclusively show this , it nevertheless(prenominal) serves to show that the bon ton is indeed grow ing among the years 2001 and 2002Land33 .01! Buildings33 .50Machinery and equipment33 .11Leasehold improvements28 .96Construction in progress250 .

54 Table 2 - Property Equipment Investments As aforementioned , the solid is gauge to make headway into its growth strategy as it invests to a greater extent capital into productive assets . While depreciation remains to a greater extent or less the same between the two operational years , the turn back is judge to stay the same from year to year for as long as the companion continues to grow . A jerky increase in this number in the future , would signal a slow down in firm growth and should provide some war ning for analysts . Of program , depreciation is expected to grow in absolute terms as the social club grows and this number is expected to reach a degree wherein the firm will have to devote more capital in to replace aging equipment . In this deal , the discussion shows the immensity of depreciation analysis as it shows that depreciation moves proportionately as the firm increases its size and provides some manifestation of the firms current strategy , at least with respect to growthCompany agate line AnalysisThe outstanding shares of Krispy Kreme increased by 2 .439 million shares between 2001 and 2002 . According the company s balance sheet outstanding shares in 2001 were pegged as 51 ,832 (in thousands ) and moved up to 54 ,271 in 2002 representing...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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