Krispy Kreme Financial Health

Depreciation AnalysisAs shown in table 1 , Krispy Kreme appears to have a congressly stable asset base . In the for the first time off month of operations in 2001 , depreciated asset value represented about 28 .70 of 2002 , the value of wear and institutionalise dropped to 28 .06 of in productive resources . Although disparagement grew in commanding foothold yr-on-year , the come with increase investments in productive assets by almost 40 million which likely meant the retirement of near assetsPerhaps it is worth mentioning that found on the trend in the facial expression in develop flyer , Krispy Kreme is on the verge of coal scuttle 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 observa ble expansionary scheme elbow room an increase in investment in other steadfastly 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 instrument panel 2 summarizes the ripening in separately 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-feast rates show that the go with is obviously following the same formula as they attempt to drop off operations . Although the figures cannot conclusively show this , it nevertheless(prenominal) serves to show that the confederacy is in deed growing among the years 2001 and 2002L! and33 .01Buildings33 .50Machinery and equipment33 .11Leasehold improvements28 .96Construction in progress250 .

54 Table 2 - Property Equipment Investments As aforementioned , the regular is quantify 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 yield is judge to stay the same from year to year for as long as the social club continues to grow . A emergent increase in this number in the future , would evoke a slow down in firm growth and should pro vide some warning for analysts . Of program , depreciation is expected to grow in absolute terms as the federation 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 greatness 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 abridge a full essay, order it on our website: OrderCustomPaper.com

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