Burger King Financial Overview 06-08

From the quietus sheet point of view, we potful jibe that total current assets initially decrementd and then remained constant. This decrease was due to a reduction in cash in and cash equivalents while simultaneously net receiv fittings step-upd. This essentially tells us that Burger Kings short landmark liquidness position took a turn for the worse. On the other hand, considering the fact that long term assets much(prenominal) as property, plant and equipment and goodwill increased, therefore total assets increased during 06-08.This tells us that reaping took place during the above mentioned period. Total liabilities decreased sharply in 07 but then rose once again slightly in 08. This decrease was mainly due to a reduction in long term debt. However, growth was still ta mogul place because total liabilities rose again in 08. The income statement for the fiscal year 06-08 shows an extremely healthy increase in the net income, especially from 06-07 (increase from $27 mill ion to $148 million). This also corroborates with our initial analysis of growth ta pouf place in the company.Referring okay to the match sheet, as mentioned before, there was a sharp decrease in cash and cash equivalents while on one hand we can see that net income has been steadily change magnitude. What we can gauge from these figures is that burger king has essentially been expanding its pipeline by reinvesting cash. Total assets cause increased during this period as wellhead mainly due to an increase in fixed assets. Due to the growth in the net income, stockholders equity has also been increasing steadily during this period. Retained earnings as well as bang-up surplus have also risen considerably during this period.All of these figures point towards a moneymaking and growing company. From the cash lam statement, figures show that cash from operational activities has been positive and rising. Cash from investing activities, on the other hand, has been negative and we can see that most of the cash has been used in capital expenditures, withal another sign of a growing and expanding company. Dividend payments have also decreased. The trade of stock has also decreased over this period and in 08 burger king repurchased its stock which is an indicator that they were trying to improve their liquidity position.From the cash flow statement, we can see that accounts receivables as well as current liabilities have increased. The augmentation of current assets therefore was mainly due to a rise in the value of the account receivables. However, both current liabilities and assets have increased during 07-08 which has resulted in the value of the current ratio remaining just below 1. Therefore, the liquidity position has remained stable although not as good as it should be. Referring back to the balance sheet, we can also that long term debt rose during 07-08. This exponent have essentially led to an increase in the interest disbursal of that year.From a n overall point of view, we can see that burger king is a profitable and growing company. Every financial statement essentially hints towards a give expansion policy. The fact that net income has been steadily increasing tells us that burger king has been extremely profitable. If it continues to operate in the same manner, it will be able to sustain this growth, keep its investors happy and finance future expansion in an efficient manner. Sources http//finance. yahoo. com/q? s=BKC William & Haka & Bettner, . Financial and Managerial Accounting. McGraw-Hill/Irwin, 2003.