Financial Analysis of Kellogg's Essay Example | Topics and Well Written Essays - 5000 words

Financial Analysis of Kelloggs - Essay ExampleIt adds to the impression of the customers as to how well theyre doing and at the equivalent time gives challenge to its competitors.This section roughly discusses the financial performance in a six-year time (2000-2005). At a particular year, 2001, Kellogg Company released its own financial analysis of that year giving explanations and answers to the growth in the proceeding years. An apparent growth has been observed right from 2000 to 2005 in Kelloggs financial performance.Comparisons are often expedient within a company to become aware of changes in financial relationships and signifi bottomt trends. In the Intracompany Basis, a comparison of current years cash summation with the prior years cash amount shows either an increase or decrease. And within the span of 6 years (2000-2005), it is very useful to compare much(prenominal) cash amount from the first year (i.e. 2000) compared to the last year of comparison (i.e. 2005). Cash a mount gained or lost may vary from 2000-2005. The proportion of total assets in the form of cash can be shown through a comparison of Kelloggs year-end cash amount with the amount total assets at year-end.Furthermore, in order to take into account insight into Kelloggs competitive position, it is also practical to compare it with other companies. Correspondingly, Kelloggs total sales for the year can be compared with the total sales of its competitors such as Quaker Oats and General Mills which both simply competes in the market. Taken as a whole, comparisons with industry averages will provide information about Kelloggs comparative position within the industry. Then, Kelloggs financial data can be compared with the averages for its industry compiled by financial ratings organizations such as Dun & Bradstreet, Moodys, and Standard & Poors. Kelloggs 2000 Financial AnalysisIn 2000, Kellogg Company achieved growth in make gain and net profit per dish out, excluding charges, des pite softness in the Companys U.S. convenience foods business, higher energy prices and interest rates, sick foreign currencies, and inventory write-offs in Southeast Asia. Through manufacturing efficiencies, reduced advertising and overhead expenses, and recognition of benefits relate to U.S. tax credits, the Company was able to withstand despite such factors. 200019991998Net earnings$597.7$339.3$502.6Net earnings per share$1.45$0.83$1.23Due to the previously stated factors or charges, there are exclusions from the results of operations in the pursual sections for purposes of comparison between years. The year 2000 and 1999 have been compared excluding charges, net earnings and earnings per share in the under table20001999ChargeNet earnings$651.9$606.2+7.5%Net earnings per share$1.61$1.50+7.3%The full-year increase in earnings per share of $0.11 consisted of $0.02 from business growth and $0.11 from favorable tax-rate movements, partially offset by $0.02 from unfavorable foreig n property movements. Kelloggs Company then continued to lead the global ready-to-eat cereal category in 2000 with an estimated 38% annualized share of worldwide dollar sales. Category share for the Companys operating segments was approximately 31% in the United States, 43% in Europe, 60% in Latin America, 45% in Canada, 57% in Australia, and 50% in Asia. The growth achieved by Kelloggs Company by the end of 2000