Coffee Vs Fazer
Running Head: Discuss Continued Case Study of Caribou Coffee vs. Fazer
TUI UNIVERSITY
Module Case 2
ACC 501: Accounting for Decision Making
Dr. Tara Murphy
March 10, 2014
This specific case study encompasses a comprehensive financial analysis of two very respectable companies, Caribou Coffee Company, Inc. and Fazer which is probably most known for its chocolate.
In this assignment we will examine each organization’s most recent financial statements and balance sheets in order to determine; what components of stockholders’ equity do each of the companies disclose, does the companies have preferred stock shares outstanding, and if so, what special features do these shares contain, and does …show more content…
Share Capital can consist of Common and Preferred Shares. (Sheet B)
Do either of the companies report treasury shares? If so, do the companies disclose the reason for reacquiring the shares? Treasury stock or shares, is the portion of shares that a company keeps in their own treasury. They may have come from a repurchase or buyback from shareholders or may never have been issued to the public in the first place. These shares don’t pay dividends and have no voting rights. Neither Caribou Coffee nor Fazer Group reported any treasury shares (investopedia.com, nd).
From the Income Statement, What are the basic and diluted earnings per share for each company? Basic earnings per share, (EPS) are a rough measurement of the amount of a company’s profit that can be allocated to one share of its own stock. Diluted EPS takes into account all of the outstanding dilutive securities that could potentially be exercised, like employee stock options for example …show more content…
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?
Caribou Coffee maintained stock option plans for officers and key employees and certain non-employees. Stocks have been granted at exercise prices equal to the fair market value of the Company’s common stock as of the dates of the grant and generally vested over four years and expired ten years after grant date. The estimated fair value of stock options was calculated using the Black-Scholes option pricing model and the compensation expense for 2012 was $1.8 million. Fazer group does not offer any stock option plans.
Profitability ratios helps asses how well the company is generating income as compared to expenses. Basically, how good a company is at making money? These ratios are best used when compared to similar companies during the same time of year. Gross profit margin (Revenue-cost of goods sold/revenue) this tells us how much profit a company earns compared to its
TUI UNIVERSITY
Module Case 2
ACC 501: Accounting for Decision Making
Dr. Tara Murphy
March 10, 2014
This specific case study encompasses a comprehensive financial analysis of two very respectable companies, Caribou Coffee Company, Inc. and Fazer which is probably most known for its chocolate.
In this assignment we will examine each organization’s most recent financial statements and balance sheets in order to determine; what components of stockholders’ equity do each of the companies disclose, does the companies have preferred stock shares outstanding, and if so, what special features do these shares contain, and does …show more content…
Share Capital can consist of Common and Preferred Shares. (Sheet B)
Do either of the companies report treasury shares? If so, do the companies disclose the reason for reacquiring the shares? Treasury stock or shares, is the portion of shares that a company keeps in their own treasury. They may have come from a repurchase or buyback from shareholders or may never have been issued to the public in the first place. These shares don’t pay dividends and have no voting rights. Neither Caribou Coffee nor Fazer Group reported any treasury shares (investopedia.com, nd).
From the Income Statement, What are the basic and diluted earnings per share for each company? Basic earnings per share, (EPS) are a rough measurement of the amount of a company’s profit that can be allocated to one share of its own stock. Diluted EPS takes into account all of the outstanding dilutive securities that could potentially be exercised, like employee stock options for example …show more content…
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?
Caribou Coffee maintained stock option plans for officers and key employees and certain non-employees. Stocks have been granted at exercise prices equal to the fair market value of the Company’s common stock as of the dates of the grant and generally vested over four years and expired ten years after grant date. The estimated fair value of stock options was calculated using the Black-Scholes option pricing model and the compensation expense for 2012 was $1.8 million. Fazer group does not offer any stock option plans.
Profitability ratios helps asses how well the company is generating income as compared to expenses. Basically, how good a company is at making money? These ratios are best used when compared to similar companies during the same time of year. Gross profit margin (Revenue-cost of goods sold/revenue) this tells us how much profit a company earns compared to its