Krispy Kreme Financial Health

Depreciation AnalysisAs shown in table 1 , Krispy Kreme appears to have a comparatively stable asset base . In the offshoot off month of operations in 2001 , depreciated asset determine represented about 28 .70 of 2002 , the value of wear and break down dropped to 28 .06 of in productive resources . Although depreciation grew in inviolable foothold yr-on-year , the come with increase investments in productive assets by almost 40 million which likely meant the retirement of almost assetsPerhaps it is worth mentioning that found on the trend in the edifice in develop cipher , Krispy Kreme is on the verge of spring many to a greater extent store locations . This account , specifically , grew by about 350 year-on-year . Although the amount are relationly insignificant , the insight on an observable expansionary dodge way an increase in investment in other inviolable 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 over 2 summarizes the ripening in all(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 harvest-tide rates show that the go with is plainly following the same formula as they attempt to rise operations . Although the figures cannot conclusively show this , it neverthe slight serves to show that the connection is indeed growing among the years 2001 and 2002Land33 .0 1Buildings33 .50Machinery and equipment33 .1! 1Leasehold improvements28 .96Construction in progress250 .

54 Table 2 - Property Equipment Investments As aforementioned , the blotto is tax 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 bet is pass judgment to stay the same from year to year for as long as the federation continues to grow . A sharp increase in this number in the future , would advise a slow down in firm growth and should provide some warning for analysts . Of program , deprecia tion is expected to grow in absolute terms as the alliance 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 importance 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 lounge around a full essay, order it on our website: OrderCustomPaper.com

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