Analysis of Kraft Foods Inc.

4016 WordsJul 18, 201217 Pages
Analysis of Kraft Foods Inc. Executive Summary The following report is an evaluation of Kraft Foods Inc. from both an internal and external perspective using fundamental and technical analysis. Kraft Foods Inc. is a worldwide food company operating within the Packaged Foods industry. With annual revenues in excess of $49 billion they are the second largest firm in the industry, controlling 8% of the total market. Fundamental analysis reveals that Kraft is a healthy company with growing revenues, and increasing margins. Technical analysis confirms much of what can be seen from a fundamental perspective but expands on it to show that Kraft is heavily debt financed and operates at a risky level of liquidity, which could be…show more content…
Food producers world-wide recognize this need and have great opportunity to ensure the growth of their business is in line with that of the market. Fundamental Analysis USD (000s) | 2007 | % Δ | 2008 | % Δ | 2009 | % Δ | 2010 | % Δ (Overall) | Revenues | 35,858 | 12.92% | 40,492 | -4.29% | 38,754 | 26.97% | 49,207 | 37.22% | Cost of Goods Sold | 23.589 | 14.99% | 27,126 | -8.50% | 24,819 | 26.13% | 31,305 | 32.71% | Net Income | 2,721 | 5.99% | 2.884 | 4.75% | 3,021 | 36.18% | 4,114 | 51.19% | Cash | 567 | 119.00% | 1,244 | 81.18% | 2,254 | 14.86% | 2,598 | 358.00% | Accounts Rec | 5,197 | -9.48% | 4,704 | 9.48% | 5,197 | 25.82% | 6,539 | 25.82% | Inventory | 4,096 | -5.24% | 3,881 | -2.73% | 3,775 | 40.66% | 5.31 | 29.63% | Current Liabilities | 17,086 | -35.36% | 11,044 | 4.04% | 11,491 | 36.28% | 15,66 | -8.34% | Long Term Debt | 12,902 | 47.03% | 18,589 | -3.03% | 18,024 | 49.01% | 26,859 | 108.17% | Before doing any calculations there are many important observations and conclusions that can be drawn from analysing Kraft’s financial statements from a fundamental perspective. Kraft has gone through some major changes in the past 4 years with the many acquisitions and divestitures they have undergone and these changes have had major implications on the financial statements. Since 2007 Kraft has been able to maintain high revenues with strong overall growth. The cost of goods sold has also seen an overall

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