Download the Case Analysis Template.

Read the Krispy Kreme Doughnuts case (pp. 378-384) in" rel="nofollow">in Strategic Management and respond to the questions in" rel="nofollow">in the Case Analysis Template.Download the Fin" rel="nofollow">inancial Ratios Spreadsheet and complete a ratio analysis for the case. Focus primarily on the issues developed in" rel="nofollow">in Chapter 4 (The Internal Assessment) of your Strategic Management text. However, seek to respond to all questions asked in" rel="nofollow">in the case analysis template, drawin" rel="nofollow">ing from the in" rel="nofollow">information provided for the selected company in" rel="nofollow">in the text (you are not expected to do outside research on the selected company, but rely solely on the in" rel="nofollow">information provided in" rel="nofollow">in the text). Note that you will be submittin" rel="nofollow">ing two documents: 1) the completed Case Analysis Template and (2) the completed Fin" rel="nofollow">inancial Ratios Template. When you have completed your assignment, save a copy for yourself and submit a copy to your in" rel="nofollow">instructor usin" rel="nofollow">ing the Dropbox by the end of the workshop Instructions: Fill in" rel="nofollow">in the cells with $ (yellow highlighted) and the ratios will automatically calculate Fin" rel="nofollow">inancial Ratios Analysis Current Year Previous Year Previous Year Liquidity Ratios Current Ratio: Current Assets/Current Liabilities - - - extent to which a firm can meet short-term obligations - generally one wants an upward trend Quick Ratios: Current assets min" rel="nofollow">inus in" rel="nofollow">inventory/current liabilities - - - extent to which a firm can meet short-term obligations w/o sellin" rel="nofollow">ing in" rel="nofollow">inventory - generally one wants an upward trend $ Current Assets $ Current Liabilities $ Inventory Leverage Ratios Debt-to-Total Assets Ratio: Total Debt/Total Assets - - - % of total funds provided by creditors - generally one wants a downward trend Debt-to-Equity Ratios: Total Debt/Total Stockholders' Equity - - - % of total funds provided by creditors vs.. by owners - generally one wants a downward trend Times-Interest-Earned Ratio: Profits before in" rel="nofollow">interest & taxes/Total Interest Charges - - - extent to which earnin" rel="nofollow">ings can declin" rel="nofollow">ine w/o firm bein" rel="nofollow">ing unable to pay in" rel="nofollow">interest - generally one wants and upward trend $ Total Debt $ Total Assets $ Total Stockholders' Equity $ Profits before Interest and taxes $ Total Interest Expense Activity Ratios Inventory Turnover: Sales/Inventory of Fin" rel="nofollow">inished Goods - - - whether firm holds extensive in" rel="nofollow">inventory and is sellin" rel="nofollow">ing it slower than in" rel="nofollow">industry - generally one wants and upward trend Fixed Assets Turnover: Sales/Fixed Assets - - - Sales productivity and plan and equipment utilization - generally one want to see an upward trend Total Assets Turnover: Sales/Total Assets - - - whether firm is generatin" rel="nofollow">ing sufficient vol. of busin" rel="nofollow">iness. for size of asset in" rel="nofollow">investment - generally one wants an upward trend Average Collection Period: Accounts Receivable/(Total credit sales/365 days) - - - average time it takes for firm to collect on credit sales - generally one wants a downward trend $ Sales $ Inventory of Fin" rel="nofollow">inished Goods $ Fixed Assets $ Total Assets $ Accounts Receivable $ Total Credit Sales (unless otherwise in" rel="nofollow">indicated, same as sales) Profitability Ratios Gross Profit Margin" rel="nofollow">in: Sales min" rel="nofollow">inus cost of good sold/Sales - - - total margin" rel="nofollow">in available to cover operatin" rel="nofollow">ing expenses and yield a profit - generally one wants an upward trend Operatin" rel="nofollow">ing Profit Margin" rel="nofollow">in: Earnin" rel="nofollow">ings before in" rel="nofollow">interest and taxes (EBIT)/Sales - - - profitability w/o concern for taxes and in" rel="nofollow">interest - generally one wants and upward trend Net Profit Margin" rel="nofollow">in: Net Income/Sales - - - after-tax profits per dollar of sales - generally one wants an upward trend Return on Total Assets (ROA): Net in" rel="nofollow">income/Total Assets - - - after-tax profits per dollar of assets (ROI) - generally one wants and upward trend Return on Stockholders' Equity (ROE): Net Income/ Total Stockholders' Equity - - - after-tax profits per dollar of stockholders' in" rel="nofollow">investment in" rel="nofollow">in the firm - generally one wants and upward trend Sales Revenue (already entered above - no need to re-enter data) - - - $ Cost of goods sold or cost of sales $ EBIT (Earnin" rel="nofollow">ings Before Interest and Taxes) $ Net Income (Earnin" rel="nofollow">ings After Interest and Taxes) Total Assets (already entered above - no need to re-enter data) - - - Total Stockholders' Equity (already entered above - no need to re-enter) - - - $ Other Operatin" rel="nofollow">ing Expenses Revenue/Expense Sales Revenue (percentage change) - - - annual percentage growth rate in" rel="nofollow">in sales - generally one wants an upward trend Cost of Sales (percentage change) - - - annual percentage growth rate in" rel="nofollow">in cost of sales - generally one wants a downward trend Operatin" rel="nofollow">ing Profit (percentage change) - - - annual percentage growth rate in" rel="nofollow">in operatin" rel="nofollow">ing profit - generally one wants an upward trend Net Income (percentage change) - - - annual percentage growth rate in" rel="nofollow">in net in" rel="nofollow">income - generally one wants an upward trend