Kaley's Knits: The Top-Line Looks Good

Let's take a look at what I call a "Rolling 12 Month File Analysis" of annual demand.  Take a look at the image below.

Kaley's Knits seems to have a successful trajectory, doesn't it?  Demand was at about $17.8 million three years ago, the business floundered for awhile, and then demand took off somewhere late in 2011.  Today, Kaley's Knits is a $20.1 million dollar top-line business.

This is the first piece of information I look at.  Every analyst can produce this graph, in fact, this should be part of Analyst 101 training.

Tomorrow, we'll inspect the four year profit and loss statement, which tells a story that is very different than the top-line growth this business is exhibiting.