FINANCIAL HEALTH OF A COMPANY

Financial Health of a Company

Financial Health of a Company

Introduction

Hershey Foods Corporation is engaged with its subsidiaries, in the production, distribution and sale of confectionery and grocery products. The company main product groups include confectionery products sold in the form of bar goods, bagged items and boxed items, as well as food products in the form of baking ingredients, chocolate drink mixes, peanut butter, dessert toppings and beverages. Hershey Foods manufacturer of confectionery products packaged in various forms and markets them in more than 50 brands. Various forms of packaged include various arrangements of the same bar products, such as crates, pallets and bags, as well as various sizes and weights of the same bar products such as snack size, standard, King Size, large and giant bars. (http://www.scribd.com/doc/296726/UNFI-United-Natural-Foods)

Financial Analysis

Total assets increased $ 233.1 million, or 7%, as of December 31, 2002, mainly due to the increase in cash and cash equivalents, prepaid expenses and other current assets and other non-current assets, partially offset by decrease in deferred income taxes, inventory, property, plant and equipment and goodwill.

Current assets increased by $ 96.1 million, or 8%, mainly reflecting the increase in cash and cash equivalents, prepaid expenses and other current assets, offset by a significant decrease in deferred income taxes. Increase in cash and cash equivalents reflects the strong cash flow from operations during the year, offset by contributions of $ 308.1 million corporation pension plans. Prepaid expenses and other current assets, as reflected above, prepaid pension costs associated with the financing of pension plans throughout the year and more than the initial margin balances in commodity futures. The elimination of the current deferred income taxes resulted primarily from the significant liabilities associated with the tax effect on other comprehensive income related to gains in commodity futures contracts during the year.

Property, plant and equipment were lower than in the previous year primarily due to depreciation expenses of $ 155.4 million and the seizure of property, plant and equipment of U.S. $ 19.0 million, partially offset by capital additions to $ 132.7 million. The decrease primarily reflects a good return on the sale of certain confectionery brands to Farley And Sather and foreign currency translation. Increase in other non-current assets, primarily due to pension plan funding over the years.

Success of the Company's Operations

Hershey Foods is a rapidly growing financial services company with a growth rate 30%. Its strengths are its educational programs backed by heavy marketing of promotional activities for its implementation force. Another advantage, which is Hershey Foods is its success in small towns and in which he achieved on the road.

It is in various production lines, and this led to a lack of collaboration within the organization. There is no clear positioning in the minds of customers as to what the stand for the Hershey Foods. Similarly, this lack of cooperation and coordination will also have an impact on sales force performance. At present, the dilemma is to grow at the same pace, ...