My assessment of Sara Lee’s Financials from 2008-2010 are as follows:
-Overall, the company’s net sales have decreased, but this is reasonable due to loss of revenues from operations of those businesses divested.
-In terms of net sales solely from business that have continued to operate, 2008 -2010 showed an increase in net sales over the two prior years, however slight decline in net sales occurred from 2008 to 2009 and from 2009 to 2010.
-While this decline in net sales from continued operations is somewhat of a concern, Sara Lee was able to significantly improve both their operating and net income each year from 2008 through 2010.
-Sara Lee has decreased their total debt carried on the Balance Sheet from year to year.
– The companies net cash flow from operating activities have significantly increased since 2008.
In my opinion, the company seems to be in good financial position after divesting business not believed to be a significant part of their strategic operating segments. They continue to improve their net income and they have many brands within their business units that have gained market share.