Evaluation of Financial Risk in Kraft Foods

Abstract

Financial analysis is an economic management activity based on the financial report data and other relevant data. It adopts a series of analytic methods to analyze and evaluate the profitability, operation ability and debt paying ability of various financial activities of enterprises and other economic organizations in the past and at present. Financial analysis provides reference for investors, operators and others to understand the state of the enterprise, predict the future development of the enterprise and the risks it faces, and help them make correct decisions. This thesis use Kraft Foods as an example for financial analysis. This paper first describes the significance of financial analysis, the reasons of the topic, and then puts forward the analysis method of this paper. In this paper, firstly, the theory of financial statement analysis is explained, and the corporate status is described by common-size analysis. Next, it describes how to use ratio analysis and DuPont analysis to analyze various financial statements based on the financial statements of Kraft Foods in the past five years. Finally, based on the analysis, a conclusion is drawn, and some suggestions on how to improve are put forward.

Financial analysis is an economic management activity based on the financial report data and other relevant data. It adopts a series of analytic methods to analyze and evaluate the profitability, operation ability and debt paying ability of various financial activities of enterprises and other economic organizations in the past and at present. Financial analysis provides reference for investors, operators and others to understand the state of the enterprise, predict the future development of the enterprise and the risks it faces, and help them make correct decisions.