It adds to the impression of the customers as to how well they're doing and at the same time gives challenge to its competitors.
This section roughly discusses the financial performance in a six-year time (2000-2005). At a particular year, 2001, Kellogg Company released its own financial analysis of that year giving explanations and answers to the growth in the proceeding years. An apparent growth has been observed right from 2000 to 2005 in Kellogg's financial performance.
Comparisons are often useful within a company to become aware of changes in financial relationships and significant trends. In the Intracompany Basis, a comparison of current year's cash amount with the prior year's cash amount shows either an increase or decrease. And within the span of 6 years (2000-2005), it is very useful to compare such cash amount from the first year (i.e. 2000) compared to the last year of comparison (i.e. 2005). Cash amount gained or lost may vary from 2000-2005. The proportion of total assets in the form of cash can be shown through a comparison of Kellogg's year-end cash amount with the amount total assets at year-end.
Furthermore, in order to provide insight into Kellogg's competitive position, it is also practical to compare it with other companies. ...