Finance & Accounting Fundamentals
This financial statement shows a company’s revenues, expenses, and profit over a period of time.
What is an income statement (or P&L)?
The EPS (earnings per share) for a company that generated $100M net income and has 40M common shares outstanding.
What is $2.50 EPS?
The following McCormick sites are all located here: Global HQ, HVP, Spice Mill, FMC, and TIC.
What is Hunt Valley, MD?
This dark spice comes from dried berries and is known as the “king of spices.”
What is black pepper?
This holiday falls directly after Christmas, and is most popular in the UK.
What is Boxing Day?
This financial statement is built on the fundamental accounting equation: Assets = Liabilities + Shareholders' Equity
What is the balance sheet?
The price we should apply to a finished good that costs $2.00 in order for us to achieve a 50% profit margin.
What is $4.00?
McCormick was founded by this person. *Bonus points if you also know the year*
Who is Willoughby M. McCormick? What is 1889?
This spice is made from the bark of certain evergreen trees and is typically sourced from tropical regions in Asia.
What is cinnamon?
Jim Henson created this cast of beloved characters.
Who are The Muppets?
Cash, inventory, and accounts receivable are examples of these.
What are current assets?
The current ratio of a company whose balance sheet has $40M of current liabilities and $60M of current assets.
What is $60M / $40M = 1.5?
Create an inclusive environment, collaborate to deliver, and improve to innovate are 3 of the 5 behaviors included in this McCormick model.
What are core competencies?
This popular seasonal blend traditionally includes ingredients such as cinnamon, cloves, nutmeg, and ginger.
What is pumpkin pie spice?
This pig featured as the main character in Charlotte's Web.
Who is Wilbur?
This cash conversion cycle metric tracks how quickly customers pay invoices.
What are days sales oustanding (or DSO)?
The operating profit margin for a company that has $500M of Net Sales, $300M of COGS, $120M of SG&A spend, and $30M of A&P investment.
What is $50M OP / $500M NS = 10% operating profit margin?
In 2017, McCormick acquired Reckitt Benckiser's Food Division for $4.2 billion, our company's largest acquisition at the time. This acquisition included these 4 brands (name at least 2 - bonus points if you get all 4).
What are French's, Frank's RedHot, Cattlemen's, and Tiger's Milk?
This spice is made from the dried stigma of a crocus flower and is considered the most expensive spice in the world.
What is saffron?
This singer's real name is Stefani Germanotta.
Who is Lady Gaga?
This accounting method spreads the upfront cost of an intangible (non-physical) asset over its useful life.
What is amortization?
The expected gross profit margin change if our supply chain can achieve CCI to reduce COGS by $2.0M on a business that currently has $80.0M of Net Sales and $60.0M of COGS.
What is +2.5% (or +250 bps) - moving from 25.0% GM to 27.5% GM?
McCormick's purpose or vision statement (either is acceptable).
What is Make like more flavorful (Purpose) or Be the world's most trusted source of flavor (Vision)?
This yellow spice is known for its active compound, curcumin, which provides powerful anti-inflammatory and antioxidant properties.
What is turmeric?
The Adams-Onis Treaty allowed the US to acquire Florida from this country.
What is Spain?