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INVESTMENT ANALYSIS

INVESTMENT ANALYSIS: GOLDEN ENTERPRISESA CASE ANALYSIS

This research presents an investment analysis of Golden Enterprises, Inc. As Golden Flake Snack Foods. a whollyowned subsidiary, contributes 95 percent of the revenues of golden Enterprises and 96 percent of the company's operating profits, this investment analysis is primarily of Golden Flake Snack Foods. Golden Enterprises recently completed a $30.5 million investment program that upgraded the production and marketing facilities of Golden Flake Snack Foods. A goal of the investment analysis performed in this research is to assess the wisdom of this investment program, and to recommend, if advisable, an alternative investment scenario for the $30.5.

Financial Ratio Analysis of Golden Enterprises The ratio analysis was performed in four areas. These areas are liquidity, activity, leverage, and profitability.

Liquidity was analyzed in two contexts. Current ratio data are presented in Exhibit 1, while quick ratio data are presented in Exhibit 2, each of which may be found on the following page. As the data presented in Exhibit 1 indicate, the company's current ratio has been consistently above that for the industry, and the company's ratio has improved in the wake of the selffinanced production improvement investment. As the data presented in Exhibit 2 indicate, the company's quick ratio has been consistently substantially and significantly above that for the industry. Exhibit 1

Current Ratios: Golden Flake Enterprises, Inc.

(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((

Year Company Ratio Industry Ratio(((( ((((((((((((( ((((((((((((((

1987 5.43:1 1.67:1

1986 3.13:1 1.66:1

(((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((((

Quick Ratios: Golden Flake Enterpri...

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INVESTMENT ANALYSIS. (1969, December 31). In LotsofEssays.com. Retrieved 16:31, March 20, 2019, from https://www.lotsofessays.com/viewpaper/1700017.html