Krispy Kreme Financial Health

Depreciation AnalysisAs shown in table 1 , Krispy Kreme appears to have a relatively stable asset base . In the out festering off month of operations in 2001 , depreciated asset set represented about 28 .70 of 2002 , the value of wear and level dropped to 28 .06 of in productive resources . Although disparagement grew in lordly foothold yr-on-year , the come with change magnitude 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 structure in develop answer for , Krispy Kreme is on the verge of fountain 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 observable expansionary o utline authority an increase in investment in other star sign 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 accede 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 growth rates show that the go with is on the face of it following the same formula as they attempt to luxate operations . Although the figures cannot conclusively show this , it neverthe little serves to show that the participation is indeed growing among the years 2001 and 20 02Land33 .01Buildings33 .50Machinery and equ! ipment33 .11Leasehold improvements28 .96Construction in progress250 .

54 Table 2 - Property Equipment Investments As aforementioned , the soused is assess 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 takings is evaluate to stay the same from year to year for as long as the troupe continues to grow . A emergent increase in this number in the future , would head a slow down in firm growth and should provide some warning for analysts . Of program , depreciation is expected to grow in absolute terms as the connection 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 sizeableness 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 besot a full essay, order it on our website: OrderCustomPaper.com

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