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Kudler Fine Foods Financials

Kudler Fine Foods Financials
Kudler Fine Foods is a local San Diego retailer of specialty food items with three upscale stores in La Jolla, Del Mar, and Encinitas. They provide the finest domestic and imported food items at reasonable prices. The store’s founder, Kathy Kudler, built the enterprise based on her vision of selecting and purchasing only the finest of products, offering customers a delightful and pleasing shopping experience, and becoming a purveyor of choice for customers seeking to purchase the best epicurean.
The members of Team C learning team analyzed the financial statements of Kudler Fine Foods by making comparisons at the intra-company level, industry averages, and with other competing companies (inter-company basis). Team C used horizontal analysis, vertical analysis, and ratio analysis to assess the significance of Kudler’s financial data. Team C presents the numerical data below, followed by the analysis of the financial statements.
Financial Ratios Kudler Industry Average Safeway
Current Ratio 16.94:1 1.96:1 0.83:1
Quick Ratio 13.04:1 0.73:1 0.27:1
Receivable Turnover 125.5X Not avail 72X
Average Collection Period 3 days Not avail 5 days
Inventory Turnover 19.8X 9.65X 12.5X
Days in Inventory 18.43 days 38.82 days 29.20 days
Asset Turnover 4.03X 4.0X 2.89X
Profit Margin 6.2% 5.2% 1.18%
Return on Assets 25.3% 3.1% 5.8%
Return on Common SE 90% 9.0% 11.91%
Debt to Total Assets 27.9% 69% 76%
Times Interest Earned 11.6X 2.3X 4.2X

Horizontal analysis is a method that analyzes a series of financial statement data over a period of time to determine the increase or decrease that resulted from one period to the next. Team C did not have financial statistics available for Kudler from the previous year, and therefore unable to make a

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