The Financial Health of Krispy Kreme Looking at a company's financial reports for the first time can be overwhelming if not intimidating. Analyzing financial ratios to determine the health of a company is more or less the same thing, but different aspects need to be properly considered to predict and evaluate the health and well-being of a company. The different aspects in evaluating the health of a company include depreciation analysis, inventory analysis, cash flow statement analysis, income statement trend analysis, management analysis, significant changes and possible reasons for the changes and implications of the change. To begin the analysis on Krispy Kreme, the first analysis is that of depreciation analysis. There are three different methods for calculating depreciation and they are straight line, per unit of production and double reducing balance (Larson, Wild and Chiappetta, 2005). The Krispy Kreme Company uses the straight-line method to calculate depreciation on buildings, machinery, equipment and leasehold improvements. The breakdown of depreciation on property and equipment consists of land, buildings, machinery and equipment, leasehold improvements and construction in progress (Larson, Wild, & Chiappetta, 2005). Krispy Kreme's total gross property and equipment in 2002 totaled $156,484,000 and in 2003 totaled $252,770,000. Accumulated depreciation for the year 2002 was a total of $43,907,000 and for the year 2003 the total was $50,212,000. To find the net amount of fixed assets and equipment, the equation used is to take the gross fixed assets and equipment and subtract the accumulated depreciation. Net property and equipment for 2002 would be $112,577,000 and for 2003 would be $202,558,000. Once obtained... halfway through the document... and expectations, including anticipated store and market openings, planned capital expenditures, and trends or expectations regarding the Company's operations and financial capabilities that constitute " forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. (Krispy Kreme Doughnut, May 7, 2002) All financial information and notes are used to evaluate the health of a company and predict what the next year may hold. The information found on the financial data contains a large amount of information and once you understand how to interpret it you have an idea of ​​the health of the company. References Larson, K. D., Wild, J. J. & Chiappetta B. (2005). Fundamental Accounting Principles (17th ed.). New York: McGraw-Hill Irwin. Krispy Kreme Donut (May 7, 2002). Form 10-K. Retrieved August 11, 2008, from www.10KWizard.com