Kraft Foods Case Study

The purpose of this project is to show how financially stable the Kraft Foods Group is and demonstrates what its strengths and weaknesses are. The reader can expect to find out what Kraft Food Group is and about their financial history for the last five years. This business participates in the consumer packaged food and beverage industry. The markets that Kraft Food Group sell to are the United States and Canada. Some brands that are included in this company are Kraft, Maxwell House, Oscar Mayer, Planers, Kool-Aid, Velveeta, Capri Sun, and Philadelphia to name just a few. This company was started in 1903 by James Lewis Kraft. Mr. Kraft used a wagon and horse and started selling cheese to businesses in Chicago, Illinois. In 1909,

Asset-to-Equity indicates the company’s leverage used to finance the company. The asset-to-equity for Kraft Food Group is up and down. This is a weakness that needs to be addressed.
This chart shows the net revenues and net earnings for the years of 2013-2009. As you observe the net revenues have been consistent in the 18,000 for at least 3 years in a row. This is a good trend for the Kraft Food Group. The trend for the net earnings is sporadic. The net earnings is also called the bottom line. This shows the amount of money that is left over after paying all of the expenses. Kraft Food Group needs to cut down on its expenses.
As you can see in this pie chart for earning per share, the year 2010 has the largest earnings per share. The earnings per share shows how much profit is allocated to each share of stock. The year 2009 is the smallest ratio. The year 2013 is showing the highest ratio. Kraft Food Group needs to increase this amount in order to have more investors.
This bar graph is showing that the trend is sporadic from year to year. This ratio shows the company’s total sales that are available for financing and supporting the company’s ongoing operations. Large ratios are needed to show that the company is in a better place to develop than its rivals. Kraft Food Group has room to grow in this

Kraft Food Group has some areas in which it can grow. The company needs to fix its debt-to-assets and debt-to-equity ratios. The profit margin has been sporadic for the last five years. This is not a good trend for the company. This industry has some very external factors that can devastate the profit margin such as drought and other Asian market trends that can hurt the bottom line for this industry and company. Weather cannot be controlled. This company has a lot of different products which can be good by not putting all of your eggs in one basket approach. This can also lead the company to be stretched and pulled into many directions. The food industry can be a very up and down market because of external forces. Kraft Food Group has some problems with putting chemicals in some of their products that are now prohibited by the government. Kraft Food Group has food scientists, engineers and chemists to combat these chemicals and to develop new products and provide consistent quality of products so they can grow through sales and profits. Kraft Food Group has a high standard of quality and respect from its customers. Kraft Food Group could lose financially by food contamination. This company will continue to grow in the future if they continue to make improvements, make investments, and produce quality