What type of story are the ratios telling the analyst

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The emphasis of this Case is to review the income statement, balance sheet, and computation of ratios for Caribou Coffee and Fazer Group.

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 either 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? 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?

Financial Ratios -Compute the following ratios. Also, interpret and assess each group of ratios for the company. What type of story are the ratios telling the analyst?

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

Reference no: EM13509261

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