- Bega Cheese is an Australian public company listed on the ASX that produces dairy products such as cheese, milk and cream.
- The company has recently become a "$1 billion company", which refers to having a market capitalization of $1 billion based on the total value of its shares trading on the stock exchange.
- As a public company, Bega Cheese divided its ownership into shares that are bought and sold on the public market, and its market capitalization represents the total value of all its outstanding shares trading based on their current market price.
Measures of Dispersion and Variability: Range, QD, AD and SD
Bega Cheese - A $1 billion company?
1. Bega Cheese
• Australian company – maker of cheese, milk,
cream and other dairy products
• A public company – it’s shares are on the ASX
• Has just become a “$1 billion company”
• What’s that mean?
2. $1 Billion of What?
Assets Liabilities
Owner’s
Equity= +
Does it mean they
have $1 billion in
Assets?Does it mean they
have $1 billion in
Liabilities?
Balance Sheet
Assets Liabilities
$1 billion
$1 billion
Owner’s Equity
$1 billion
Balance Sheet
Assets Liabilities
$1 billion
$1 billion
Owner’s Equity
$1 billion
Balance Sheet
Assets Liabilities
$1 billion
$1 billion
Owner’s Equity
$1 billion
Balance Sheet
Assets Liabilities
$1 billion
$1 billion
Owner’s Equity
$1 billion
Balance Sheet
Assets Liabilities
$1 billion
$1 billion
Owner’s Equity
$1 billion
Balance Sheet
Assets Liabilities
$1 billion
$1 billion
Owner’s Equity
$1 billion
Balance Sheet
Assets Liabilities
$1 billion
$1 billion
Owner’s Equity
$1 billion
Does it have
Owner’s Equity of
$1 billion?
Balance Sheet
Assets Liabilities
Cash
$1 billion
$1 billion
Owner’s Equity
$1 billion
Have they got $1
billion in the bank?
3. $1 Billion of What?
Income Statement
Revenue $ $
Cash sales 700m
Credit sales 300m 1,000m
less Cost of Goods Sold
Cost of sales 320m
Cartage inwards 30m 350m
Gross Profit 650m
less Other Expenses
Rent 100m
Wages 270m
Insurance 80m 450m
Net Profit 200m
Income Statement
Revenue $ $
Cash sales 700m
Credit sales 300m 1,000m
less Cost of Goods Sold
Cost of sales 320m
Cartage inwards 30m 350m
Gross Profit 650m
less Other Expenses
Rent 100m
Wages 270m
Insurance 80m 450m
Net Profit 200m
Does it mean they
made Revenue of
$1 billion?
Income Statement
Revenue $ $
Cash sales
Credit sales
less Cost of Goods Sold
Cost of sales 320m
Cartage inwards 30m 350m
Gross Profit 650m
less Other Expenses
Rent 100m
Wages 270m
Insurance 80m 450m
Net Profit 1,000m
Does it mean their
Net Profit was $1
billion?
7. Bega Cheese – A $1 Billion Company
• There are approximately 133m
shares in Bega Cheese
• When the company first listed its
shares on the ASX in 2011 they
were valued at $2 each
= 133m shares
X =
No.
shares
Share
price
Total
value
133m $2 $266m
8. Bega Cheese – A $1 Billion Company
Because the company has done so
well, the value of each share is now
$7.50 each
So the total market capitalisation of
Bega Cheese is $1 billion
= 133m shares
X =
No.
shares
Share
price
Total
value
133m $7.50 $1,000m