Assessing Financial Statements
The company that I have chosen is Starbucks. In the last three years Starbucks has maintained a Net Revenue in more than $9 billion per year. In 2009 Starbucks net revenue was at $9.8 billion dollars and in just two year Starbucks ended their 2011 year with net revenue of $11.7 billion making this the highest annual revenue ever. This was an 11 percent increase on a comparable 52-weeks basis. Over the last three years the operating margin has increased more than 9.1 percent making 2011 top out at 14.8 percent at the end of the year. This make an increase in the operating income go from $562 million to $1,728 million in just three short years. At the end of 2011 the total annual assets for Starbucks was $7.36 billion and the total debt was $2.97 billion. This information tells me that Starbucks is in a good situation financially.
The net profit margin for Starbucks has gone up 3.18 percent. In 2009 the net income was $390,000 and in 2011 the net income had increased to $1,245,700. The net income level has had a dramatic incline. I believe this is due to the increase addiction to caffeine and even though our country is still facing an economic situation people love their coffee and other great drinks and food that Starbucks has to offer.
Total store sales have increased impressively from -6 percent in 2009 to 8 percent in 2011. Though Starbucks had an increase of 14 percent in store sales the operating cash flow and capital expenditures has decreased from $1,705 million in 2010 to $1,612 million in 2011. The return on assets has increased over the last three years as well. I believe this is showing how impressive Starbucks is that they are able to still succeed in time of tough economic situations.
Please join StudyMode to read the full document