Financial Analysis Starbucks Corp. Fin 540
Running head: FINANCIAL RATIO ANALYSIS STARBUCKS CORP.
Financial Ratio Analysis Starbucks Corporation
University of Phoenix
FIN/540 Managerial Accounting and Finance Foundations
September 19, 2011
Financial Ratio Analysis Starbucks Corporation Starbucks Corporation is the global leader in coffee and has a strong entrepreneurial history of product development and branding. Ranked as both a Fortune 500 and Fortune 1000 Best Company to Work For Starbucks employs 116,357 team members in the United States (Fortune, 2010). Starbucks (SBUX) Corporation according to Plunkett Research, Ltd. ranks in their industry group as number one in sales and profits. National and internationally Starbucks Corporation own 16,858 stores located in a variety of settings. Since its conception in 1971 Starbucks has expanded to over 50 countries and serves millions of consumers a day. The business has expanded beyond coffee sales to include; • Coffee shops and bars including quality foods • Coffee accessories and equipment • Wholesale coffee distribution • Recorded music and DVD sales • Custom music CD kiosks • Book sales
(Plunkett Research & Ltd., 2010)
It also licenses its trademarks through other channels such as licensed stores and through certain of its licensees and equity investees, produces and sells ready-to-drink beverages. Starbuck’s portfolio includes brands such as Starbucks®, Tazo® Tea, Seattle 's Best Coffee®, and Starbucks VIA® Ready Brew. Co. has three segments: the U.S., International, and Global Consumer Products Group (Mergent Online, 2011).
Financial Ratios
Analyzing past and current financial ratios determined by Starbuck Corp. balance sheet are indicators of the corporation’s performance and financial condition. A comparison with industry averages identify rends, strengths, and weaknesses in the corporation and can predict future growth and potential bankruptcy.
Financial Ratio Analysis Starbucks Corporation
University of Phoenix
FIN/540 Managerial Accounting and Finance Foundations
September 19, 2011
Financial Ratio Analysis Starbucks Corporation Starbucks Corporation is the global leader in coffee and has a strong entrepreneurial history of product development and branding. Ranked as both a Fortune 500 and Fortune 1000 Best Company to Work For Starbucks employs 116,357 team members in the United States (Fortune, 2010). Starbucks (SBUX) Corporation according to Plunkett Research, Ltd. ranks in their industry group as number one in sales and profits. National and internationally Starbucks Corporation own 16,858 stores located in a variety of settings. Since its conception in 1971 Starbucks has expanded to over 50 countries and serves millions of consumers a day. The business has expanded beyond coffee sales to include; • Coffee shops and bars including quality foods • Coffee accessories and equipment • Wholesale coffee distribution • Recorded music and DVD sales • Custom music CD kiosks • Book sales
(Plunkett Research & Ltd., 2010)
It also licenses its trademarks through other channels such as licensed stores and through certain of its licensees and equity investees, produces and sells ready-to-drink beverages. Starbuck’s portfolio includes brands such as Starbucks®, Tazo® Tea, Seattle 's Best Coffee®, and Starbucks VIA® Ready Brew. Co. has three segments: the U.S., International, and Global Consumer Products Group (Mergent Online, 2011).
Financial Ratios
Analyzing past and current financial ratios determined by Starbuck Corp. balance sheet are indicators of the corporation’s performance and financial condition. A comparison with industry averages identify rends, strengths, and weaknesses in the corporation and can predict future growth and potential bankruptcy.
References: (Brealey R A Myers S C Marcus A J 2003 Financial Statement Analysis)Brealey, R. A., Myers, S. C., and Marcus, A. J. (2003). Financial Statement Analysis. In Fundamentals of Corporate Finance (4th ed., pp. 448-478). : McGraw-Hill Companies. (Fortune 2010 Best big companies to work for)Fortune (2010). Best big companies to work for. Retrieved September 15, 2011, from CNN Money Web site: http://money.cnn.com/galleries/2010/fortune/1004/gallery.fortune500_best_employers.fortune/16.html (Plunkett Research Ltd 2010 Starbucks Corporation)Plunkett Research Ltd. (2010). Starbucks Corporation. Retrieved September 18, 2011, from Plunkett Research, Ltd. Web site: http:///www.Plunkettresearchonline.com/ResearchCenter/Profiles/view2.aspx?Industry=4&Company=STARBUCKS+CORPORATION Mergent Online, 2011, University of Phoenix Apollo Library. Starbucks Corporation (SUBX). Retrieved September 16, 2011. http://www.mergentonline.com.ezproxy.apollolibrary.com/companydetail.php?compnumber=73271&pagetype=synopsisM (Starbucks Corporation 2010)Starbucks Corporation. (2010). Retrieved September 17, 2011, from Starbucks Coffee Company Web site: http://assetts.starbucks.com/assetts/company-profile-feb10.pdf