Financial Statement Analysis Research Paper Example | Topics and Well Written Essays - 1500 words

Financial Statement Analysis - Research Paper ExampleIt provides sensory faculty to the investors in that guide them in making important investment decisions. The analysis of the firm will reveal its financial background, operating efficiency, liquidity position, and profitability, going concern, and peachy structure and gearing position. Industry analysis facilitates the understanding of the operating environment, identification of external threats and opportunities for investment, analysis of trends within the industry and the general performance of the industry.The Yum Brands Inc. is a speedy food restaurant incorporated in 1927. The company establishes, operates, franchises and licenses a global system of restaurants, which make, pack and sell a menu of priced food commodities. The company has lead mighty brands, TACO Bell, KFC and Pizza Hut, which has continuously sustained its profitability over the years. Over the years, the company has reported increase in turnover, profi ts and returns to bundleholders. The earnings per share of the company has an upwards trend for the past eight years with the exception of 2013 when the earnings dropped significantly (Morningstar Inc., 2014). The companys growth is inducen by its powerful brands, superior marketing strategies, breakthrough innovations and competing values, and venturing into new markets (Yum Brands Inc., 2014).The restaurant business in the U.S is highly competitive with major multinational companies such as Yum Brands, Starbucks, McDonalds, Wendys, and Chipotle. Personal income, demographics and consumer tastes and preferences drive demand in this industry. Individual entities in the industry have varied profitability levels. Whereas the quick-service restaurants rely on high-volume turnover and efficient operations, the full-service restaurants rely on efficient marketing and high-margin items. This industry is experiencing an upward growth trend in sales, profitability and shareholders return s over the years