Problem: Review of the income statement and balance sheet and compute the ratios for Caribou Coffee and Fazer Group.
Financial Rations:
Profitability ratios:
Gross profit margin
Net profit margin
Return on stockholders' equity
Liquidity ratios:
Current ratio
Quick ratio
inventory turnover
Leverage ratios:
Debt-to-assets
Debt-to-equity
Times-covered ratio
Balance Sheet:
What components of stockholders' equity do each of the companies disclose?
Do the companies have preferred stock shares outstanding? If so, what special features do these shares contain?
Do any of the companies report treasury shares? If so, do the companies disclose the reason for reacquiring the shares?
Income Statement:
What are the basic and diluted earnings per share for each company?
Have the companies reported any discontinued operations for the last year?
Do the companies disclose any stock compensation plans? If so, are they reporting such plans under the fair value or intrinsic value methods? What was the value of compensation expense measured for any outstanding stock option plans?
What type of information do you find in footnotes to the financial statements?
Do you find the balance sheet, income statement or other measures such as ratios the most informative?
Comment of the advantages and disadvantages of using ratios for analysis.
| Balance Sheet Information for 2011 |
|
|
Caribou |
Fazer |
|
|
40,909.0 |
2,011.0 |
| Current Assets |
$ millions |
Euro millions |
| Cash or Equivalents |
44.5 |
94.9 |
| Accounts Receivable |
16.3 |
216.6 |
| Inventories |
23.0 |
61.4 |
| Deferred Tax current |
6.8 |
7.7 |
| Prepaid Expenses |
1.5 |
|
| Total Current |
92.1 |
380.6 |
| Net Prop Plant Equip |
37.0 |
|
| Restricted Cash |
|
|
| Deferred Tax non current |
13.9 |
|
| Other assets |
0.3 |
|
| Non Current Assets |
51.2 |
614.1 |
| Total Assets |
143.4 |
933.3 |
|
|
|
| Current Liabilities |
|
|
| Accounts Payable |
10.5 |
|
| Total Current Liabilities |
33.8 |
249.0 |
| Debt |
|
8.3 |
19.4 |
| Total Liabilities |
44.3 |
378.0 |
|
|
|
|
| Equity |
|
|
| Common Stock |
0.2 |
|
| Paid in Capital |
132.6 |
|
| Accum Deficit |
-31.7 |
|
| Shareholders Equity |
101.1 |
496.0 |
| Non controlling Interest |
0.1 |
44.2 |
| Provision |
|
|
15.1 |
| Total Equity |
101.2 |
555.3 |
| Total Liab + Equity |
143.4 |
933.3 |
|
|
|
|
| Income Statement Information for 2011 |
|
|
Caribou |
Fazer |
|
|
40,909.0 |
2,011.0 |
|
|
$ millions |
€ millions |
|
|
|
|
| Sales |
|
326.5 |
1,587.8 |
| Cost of Sales |
162.7 |
568.7 |
| Operating Expense |
106.0 |
568.7 |
| Other costs |
|
11.4 |
454.6 |
| Interest Expense |
0.3 |
3.5 |
| Gen + Admin |
31.2 |
510.6 |
| Gross Profit |
|
15.2 |
54.2 |
| EBIT |
|
35.6 |
49.8 |
| Net Income |
|
35.2 |
21.3 |
|
|
|
|
|
|
|
|
| Fazer Share Earnings per Share |
|
| Preferred Shares |
3,958,763 |
|
| Ordinary Shares |
2,365,200 |
|
| Euros Earnings |
21,300,000 |
|
|
|
|
|
| Euros Earning per Share |
3.4 |
|