ipl-logo

Campbell Soup Company Financial Statement Analysis

2908 Words12 Pages

FINANCIAL STATEMENT ANALYSIS
________________________

FIN 4385
Eryck Lopez

Texas A&M International University

Balance Sheet

From examining the financial sheet of Campbell Soup Company, the business is adhering to its plan for fostering innovation and growing into new markets. When we look at the balance sheet, we can see that the firm has made significant investments in property, plant, and equipment, which shows that it has made investments in its manufacturing facilities. This is in line with the business's objective to strengthen its supply chain and increase operational effectiveness.

The firm also has significant goodwill and other intangible assets, indicating that its primary goals are brand development and product range …show more content…

9. Why the increase in current liabilities in 2022?

There are several reasons why Campbell Soup Company's total current liabilities increased in 2022. First, the payments to suppliers and others increased as a result of increasing purchases of raw materials or inventories for manufacturing. In addition, accumulated liabilities increased, resulting from rising costs for things like wages and utilities. Finally, the rise in current obligations can also have been influenced by the dividends due.

Additionally, the company's strategic objectives may also be a factor in the rise in current liabilities. For example, Campbell Soup Company has been aggressively acquiring other businesses as part of its expansion plan. These purchases might result in more outstanding current liabilities due to assumed debt or short-term borrowing for funding the deals.

All-around, operational and strategic reasons cause Campbell Soup Company's total current liabilities to rise in 2022, representing its continued attempts to develop and expand its

Show More
Related
1064 Words | 5 Pages

Their current ratio improved from 1.59 to 2.44 which shows the ability to cover current liabilities has improved. Massachusetts Stove Company strategically made decisions to not only increase their current assets quickly but also managed their liabilities to keep them from growing out of control. This means that the company could cover current liabilities at any time relatively easily with their cash, receivables, or other current assets. In terms of the market, Massachusetts Stove Company does have the demand of 220,000 active prospects they could try to sell stoves too if a dire need arose for quick cash. Management even brought their quick ratio to 1.08.

Read More
932 Words | 4 Pages

In table 2 are the five-year financial ratio trend for Boston Beer Co. and comparison of the ratios to two of the company large competitors Heineken and Anheuser Bush. Small craft breweries, while competitors to Boston Beer Co. cannot be included in this evaluation, because they are privately owned and their financial information is not public. Both short-term and long-term Solvency ratios do provide information about the company ability to pay short- term and long-term obligations. The ratios for Boston Beer Co. while fluctuating little over the period of five years still shows that Boston Beer is better prepared to pay both short-term and long-term debt than either Heineken or Anheuser Bush. The Times Interest Earned and Cash Coverage ratio

Read More
881 Words | 4 Pages

its

Read More
529 Words | 3 Pages

its

Read More
769 Words | 4 Pages

Net sales growth of 3.5 percent exceeded inventory growth of 2.2 percent. • Selling, general and administrative expenses, as a percentage of net sales, of 30.3 percent increased 46 basis points compared with the same period in fiscal 2016, reflected planned technology and supply chain expenses associated with the Company's growth

Read More
3019 Words | 13 Pages

its

Read More
742 Words | 3 Pages

its

Read More
835 Words | 4 Pages

More liquidity is what manger and shareholders are looking for to determine whether the company has the ability to cover the short-term liabilities. The current ratio value for the year 2013 calculated in comparison to 2012 shows decrease in liabilities. To measure the debt-equity rate of the company, show if a business is using the fitting amount of debt financing (Parrino, Kidwell, Bates, 2012). Greater potential on return and greater bankruptcy risk are shown by higher ratios (Parrino, Kidwell, Bates, 2012). The debt interest rate in 2012 was 15% information revealed the SG&A expenses ratio to income is blank unlike the net year which, is nearly 40% for 2013, long-term debt from the year 2012 to year 2013 has nearly increased by

Read More
1339 Words | 6 Pages

its

Read More
920 Words | 4 Pages

its

Read More
984 Words | 4 Pages

Overall, the increased debt is justifiable as they are producing a lot more, but it does hinder their liquidity and ability to take on more debt. In 2015 the company had a gross margin at 30.8% which was higher than the industry. This is a good indication that the

Read More
771 Words | 4 Pages

its

Read More
2001 Words | 9 Pages

its

Read More
1722 Words | 7 Pages

The company increased its long-term debt from 20 million to over 530 million from 2006 to 2011. This significantly increased its Debt to Equity Ratio from 0.18 to 1.17 over the previous fiver years. The increase in debt also hindered the company's current ratio and interest coverage ratio as time went on. As seen by the debt covenants and the decline in AP days, creditors began to feel uneasy about the amount of debt being taken on by the company. In a relatively short period of time a walnut distributor had taken the snack segment by storm and was poised to make a multi-billion dollar bid for Pringles.

Read More
1564 Words | 7 Pages

its

Read More

More about Campbell Soup Company Financial Statement Analysis

Related Topics

Open Document