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Kudler Fine Foods Financial Ratios

In: Business and Management

Submitted By studentx
Words 676
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There is much information available to the public that can help a business owner or an investor identify how well or how poorly a company is performing. Public companies are required to publish quarterly financial data to the public. With the use of this data and using simple formulas to determine certain ratios, investors and business owners alike can make the most educated decisions on a company. In this report I will analyze some of Kudler Fine Food’s financial data and compare it to to another company in the same wholesale food industry. I will also evaluate the IT networking and whether it can successfully provide the requisite info to management in a complete, timely manner.
Financial Data

Kudler Fine Foods is a company that specializes in everything involving gourmet food. In

addition to stocking and selling the freshest ingredients, Kudler Fine Foods also stocks

instruments and utensils used by gourmet cooks, all at reasonable prices. Some of Kudler Fine

Food’s financial ratios are as follows:

Current Ratio

Current Ratio is defined as a Current Assets / Current Liabilities. A successful business would

Have that number or ratio as high above 1 as possible. Kudler’s current assets (2003) totaled

$1,971,000 and their current (2003) liabilities totaled $116,290.

Current Ratio: 1,971,000 / 116,290 = 16.95.

So for every dollar Kudler owes in the short term it has $16.95 in available assets that can be

converted to cash in the short term.

Debt Ratio

Debt Ratio is defined as Total Debt / Total Assets. Ideally this number would be as low as

possible. Kudler’s total debt (2003) equaled $746,290 and their total assets (2003) equaled
Debt Ratio: 746,290 / 2,675,250 = 0.27 or 27%
Profit Margin
Profit Margin is defined as Net Income / Revenue...

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