Lorentz Meats

Lorentz Meats has posted positive net income in the most recent three of the past five years, and appears poised to continue on a positive trajectory. Sales growth has been steady and is outpacing growth in cost of goods sold, showing positive margin growth. They appear to be managing expenses well, though 2008 showed a slight uptick in SG&A (sales, general, and administrative expenses) costs. If current trends continue, their financial outlook seems good. It is also important to note that Lorentz Meats does not include the value of the meat they process in their profit and loss statements. In other words, the sales they post only include the “added value” from their processing, not the value of the products themselves. If they did include in sales numbers the full value of the products they process, it would increase their yearly sales to approximately $14,000,000. As such, Lorentz Meats has a larger economic impact than their profit and loss statements imply.