Financial Statement Analysis Assignment Example | Topics and Well Written Essays - 3000 words

Financial Statement Analysis - Assignment Example The financial position and performance of a company can be analyzed with the help of different tools available. However, for the relative performance analysis, common size analysis as well as the traditional ratio analysis is the most effective tools such that they provide a same yardstick to compare the performance of two or more companies over several periods. This particular report emphasizes the performance of Kellogg Co. and Kraft Foods on the basis of common sized analysis and the traditional ratio analysis. Kraft Food Company is one of the world’s largest food companies. In 2011, the estimated revenue of the company is approximated as $54.4 billion whereas the earnings of the company before taxes are amounted as $4.8 billion. Kraft Food incorporated in Virginia in 2000. They have around 126,000 employees all over the world. The company manufactures and markets products related to food which includes confectionery, biscuits, cheese, beverages, packaged grocery, convenient meals etc. The company sells its products to its customers in over 170 different countries. At the end of 2011, the company reported gross assets of $93.8 billion and net assets of $35.5 billion. Kraft Food Company is a member of Standards and Poor 500, Dow Jones Industrial Average, Ethibel Sustainability Index and Dow Jones Sustainability Index. In 2011, the company’s portfolio included 12 brands. All these 12 brands reported revenues of $1 billion each. The most renowned brands of the company included Oreo, Mila and Cadbury Chocolates, Philadelphia Cream Cheese, Nabisco, Maxwell House Coffees, Trident gum, Kraft cheese, dressings and dinners, Tang powdered beverage, LU biscuits and Oscar Mayor Meats. The brand portfolio of the company included around 80 brands which generate revenues exceeding $100 million each year. Kellogg Company was founded in 1906. Its subsidiary companies are engaged in marketing and manufacturing convenience and ready to eat food. The major