Hello everyone. I'm a college student working on a business report, however I'm having some difficulty with the financial analysis section. My report is on Kellogg Co. and its acquisition of Pringles. I'm supposed to create a table with figures from the past 3 years to explain Kellogg Co.'s strategic action (acquiring Pringles). In any case, I'm having trouble deciding what figures would be relevant to Kellogg's strategic action, and I would like help in understanding what I should use and why it explains its action. I will post what I have used and attempted so far. Thanks in advance! -------------------------------------------------------- Total Assets Total Debt Total Shareholders' Equity Net Sales (US Snacks) Net Sales (US Morning Foods & Kashi) Contribution to Net Sales (US Snack and morning food) Operating income/profit (US snacks) Long-term Debt Free Cash Flow D/E Ratio D/A Ratio Fixed Assets turnover Return on assets Operating profit margin (US Snacks) Kellogg Co.’s decision to acquire Pringles from P&G for $2 billion USD can be understood by examining the financial data provided in the table above. Net sales from its US Snack business have increased by $150 million USD since 2009, and its contribution to net sales has closed in to Kellogg’s largest business (Morning foods/Kashi) by 1.08% since 2009 (a current difference of 5.51%). This shows that Kellogg’s US Snack business is growing in profitability and importance to the company, leading to the need to consider acquisition to increase its market power. Kellogg Co.’s financial constraints also explain the driving forces behind its acquisition of Pringles. Its free cash flow is currently $1.1 billion, leading to the need to take on debt in order to fund the $2.7 billion USD acquisition. Kellogg’s Debt-Equity Ratio has increased an average of 0.92% since 2009, and long-term debt has increased an average of $101 million USD since 2009. This indicates that Kellogg is comfortable with taking on additional risk by borrowing money because they ?????? Despite an increase from 2009 to 2010, operating profits from the US Snack business saw a decrease of 2.48% in 2011. This is indicative that the US Snack business could perform more efficiently, and Kellogg Co. may be acquiring Pringles in order to gain synergistic benefits that will reverse this downward trend. Or if someone could just tell me what I should omit and what isn't useful in what i've written, that would be enough help.