Marketing Analysis : Diamond Foods

1935 Words Feb 10th, 2016 8 Pages
Problem Statement

The major internal problem that Diamond Foods needs to address is potential excess waste in the packaging and handling operations of their product assembly. One of the major external problems is facing the demands of competitors. The ethical dilemma that Diamond Foods could face is lying about nutritional facts on products and packaging.

Trend Analysis

The trend of net sales, in terms of percentage fluctuation, proves that net sales stayed almost exactly the same between 2013 and 2015. As sales increase in the snacks segment due to a higher volume of sales, sales declined in the nut segment due to a decreased volume of sales. Ultimately, this increase of sales in one segment and the decrease of sales in the other segment offset each other to keep net sales nearly the same over the course of the three years.
Diamond Foods current ratio has increased continuously over the between 2013 and 2015. In 2013 it was at 0.8 and by 2015 it was at 2.1. Overall, Diamond Foods has the ability to meet its short-term obligations using the liquidity ratios because their total current liabilities decreased in 2014 from $290.6 million to $133.5 million, while total current assets remained around the same amount from 2013 to 2015.
Diamond Foods debt/equity ratio has slowly decreased from 3.4 in 2013 to 2.1 in 2015. Diamond Foods issued more shares of common stock in 2014 allowing the ratio to decrease. This was because of the increase in stockholder’s equity.

The trend of…
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