Starbucks Working Capital Strategies
Starbucks Working Capital Strategies Starbucks is one of the largest most recognizable names in the coffee industry known worldwide. Starbucks has been able to hold onto their business making revenue in these current rough economic times. Even though they have had to shut down some stores it is nothing new than what any other company does when stores are not brining in the revenue that is expected to cover expenses of the business. To see what kind of impact the decisions that Starbucks has made and to see if they have helped the company at all, there will be several financial statements that will be looked over as well as policies to determine if Starbucks is doing good with their financials.
Current Assets affect Cash Management Strategies There are different ways of managing cash; there are strategies that manage cash. Businesses uses cash management strategies to bring in cash as quickly as possible. With cash management strategy help accurately assess your current cash position and make reliable predictions of how much cash you may need in the future. Because cash management helps a business get more details of their cash position for the future, any calculations of cash is important to the business (Hakala, 2010). The cash management strategies help manages the cash that is being brought into the business. The cash is managed off of the financial statements and the cash flow reports. The current asset would change the details of the financial statements and the cash flow reports. The strategy would then change and give a different prediction. Starbucks current assets are changing every statement which would affect their cash management strategies. If their current assets were decreasing then it would mean that their cash coming into their business was slowing down. With that prediction, Starbucks would have to manage their assets as well as their cash and cash equivalents differently than what they were doing before they decreased in current
Current Assets affect Cash Management Strategies There are different ways of managing cash; there are strategies that manage cash. Businesses uses cash management strategies to bring in cash as quickly as possible. With cash management strategy help accurately assess your current cash position and make reliable predictions of how much cash you may need in the future. Because cash management helps a business get more details of their cash position for the future, any calculations of cash is important to the business (Hakala, 2010). The cash management strategies help manages the cash that is being brought into the business. The cash is managed off of the financial statements and the cash flow reports. The current asset would change the details of the financial statements and the cash flow reports. The strategy would then change and give a different prediction. Starbucks current assets are changing every statement which would affect their cash management strategies. If their current assets were decreasing then it would mean that their cash coming into their business was slowing down. With that prediction, Starbucks would have to manage their assets as well as their cash and cash equivalents differently than what they were doing before they decreased in current
References: 2009. Starbucks Newsroom. Retrieved from http://news.starbucks.com/article_display.cfm?article_id=213 (2010). Prepaid Expense. Retrieved from http://www.investopedia.com/terms/p/prepaidexpense.asp Gilbert, Sarah (2008). Starbucks: Will store closings lift company’s fortunes? Retrieved from http://www.bloggingstocks.com/2008/07/02/starbucks-will-store-closings-lift-companys-fortunes/ Hakala, David (2009). 4 Effective Cash Management Strategies. Retrieved from http://www.focus.com/articles/cash- management/cash-management-strategies/ Starbucks. (2008). Annual Report. Retrieved from http://phx.corporater.net/External.File?item=UGFyZW50SUQ9MTExNzN8Q2hpbGRJRD0tMXxUeXBlPTM=&t=1