Share
Explore BrainMass

Papa Jones: Financial Health

I need assistance in researching a publicly traded corporation (Papa John) that has exhibited global business strategies. It must summarize and include the organization's financial statement (2013)and include an analysis of their financial statements as well as incorporate information gained in this course to explain and analyze the corporation's most recent financial statements and, e.g., answer the following:

Use the organization's financial to determine its financial health. Identify examples from the organization's financial statements to justify the team's responses.

Solution Preview

In compliance with Brainmass rules this is not hand in ready paper but only guidance.

Please see the attachments for the financial statements and power point.

The company is Papa John. This company's financial strength is mediocre.

First we consider the financial strengths of Papa John. The total revenues of the company have increased from $1.1 billion in 2009 to $1.4 billion in 2013. The gross profit of Papa John has increased from $629.4 million in 2009 to $834.1 million in 2013. The gross profit of a company is the residual profit of Papa John after selling its products/service and deducting the costs associated with its production and sale. These two figures show that Papa John has grown over the last five years. Its sales revenues and gross profits have increased. It also means that the cost of revenue is under the control of the company. Next, the operating income of Papa John has increased from $534.2 million in 2009 to $727.6 million in 2013. In addition, the net income of Papa John has increased from $53.7 million in 2009 to $69.5 million in 2013. The net income is found by taking the revenues and deducting the cost of doing business, depreciation, interest, taxes, and other expenses. The net income is used to calculate the earnings per share of Papa John. These figures show that operating expenses are under control of the company. It also, means that the company is profitable and the profits can be ploughed into the company. There is potential for growth. The earnings per share have also gone up from $0.97 in 2009 to $1.55 in 2013. The earnings per share is Papa John's profit allocated to ...

Solution Summary

The response provides you a structured explanation of the financial health of Papa Jones. 1100+ words, a powerpoint presentation, a PDF and references.

$2.19