Financial Management at Starbucks Corporation and Tully's Coffee Corporation
Starbucks Corporation & Tully’s Coffee Corporation
MBA 522: Financial Management
December 9, 2008 Tully’s Coffee Corporation
Established in 1992, Tully’s Coffee Corporation is a Seattle based coffee retailer and wholesaler. The main products offered by the company are baked food items, coffee products and pastries. Additionally, their coffee beans have exceptional sales in regional supermarket and grocery stores. The company currently operates over 100 stores in the western region of the United States and they have embarked upon a business venture in Japan where Tully’s is creating quite a coffee presence, they are also investigating expansions into other foreign markets. The Corporation started generating profits in the year 2006 (About Tully’s, 2007).
Starbucks Corporation
Seattle-based Starbucks Corporation is the leading coffeehouse chain in the world. The company currently has operations in more than 44 countries. The main products offered by Starbucks include a wide variety of beverages, coffee beans and brewing equipment, and a wide assortment of snacks and sandwiches. The company also branched into marketing music and books (The Company, 2008).
Ratio Analysis
Ratios Starbucks Tully 's Coffee
Current Ratio 0.79 0.51
Quick Ratio 0.30 0.30
Debt Equity Ratio 1.34 5.22
Proprietary Ratio 0.43 0.24
Solvency Ratio 0.57 1.24
Inventory Turnover Ratio 12.13 11.27
Gross Profit Ratio (%) 23.34 44.96
Net Profit Ratio 7.15 15.76
Return on Proprietors ' Funds 29.45 -
Earning Per Share 0.91 0.004
Current Ratio
Current ratio may be defined as the relationship between current assets and current liabilities. It is also known as the working capital ratio (2: 1 ratio). It is calculated by dividing current assets by current liabilities. Current assets of a firm represent those assets which can be, in the ordinary course of business, converted into cash within a period not exceeding one year. Current liabilities are those obligations which are to be paid
MBA 522: Financial Management
December 9, 2008 Tully’s Coffee Corporation
Established in 1992, Tully’s Coffee Corporation is a Seattle based coffee retailer and wholesaler. The main products offered by the company are baked food items, coffee products and pastries. Additionally, their coffee beans have exceptional sales in regional supermarket and grocery stores. The company currently operates over 100 stores in the western region of the United States and they have embarked upon a business venture in Japan where Tully’s is creating quite a coffee presence, they are also investigating expansions into other foreign markets. The Corporation started generating profits in the year 2006 (About Tully’s, 2007).
Starbucks Corporation
Seattle-based Starbucks Corporation is the leading coffeehouse chain in the world. The company currently has operations in more than 44 countries. The main products offered by Starbucks include a wide variety of beverages, coffee beans and brewing equipment, and a wide assortment of snacks and sandwiches. The company also branched into marketing music and books (The Company, 2008).
Ratio Analysis
Ratios Starbucks Tully 's Coffee
Current Ratio 0.79 0.51
Quick Ratio 0.30 0.30
Debt Equity Ratio 1.34 5.22
Proprietary Ratio 0.43 0.24
Solvency Ratio 0.57 1.24
Inventory Turnover Ratio 12.13 11.27
Gross Profit Ratio (%) 23.34 44.96
Net Profit Ratio 7.15 15.76
Return on Proprietors ' Funds 29.45 -
Earning Per Share 0.91 0.004
Current Ratio
Current ratio may be defined as the relationship between current assets and current liabilities. It is also known as the working capital ratio (2: 1 ratio). It is calculated by dividing current assets by current liabilities. Current assets of a firm represent those assets which can be, in the ordinary course of business, converted into cash within a period not exceeding one year. Current liabilities are those obligations which are to be paid
References: About Tully’s. (2007). Retrieved November 21, 2008, from http://www.tullys.com/company/ Starbucks Corp: Financial Statement. (2008). MSN Money. Retrieved November 21, 2008, from http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=SBUX&lstStatement=Balance&stmtView=Ann The Company. (2008). Retrieved November 21, 2008, from http://www.starbucks.com/aboutus/overview.asp Tully 's Coffee Corporation. (2008, November). Hoovers. Retrieved November 21, 2008, from http://www.hoovers.com/free/co/secdoc.xhtml?ID=58100&ipage=6157151-141335-231989 Van Horne, J.C., Wachowicz, J.M., & Bhaduri, S. N. (2005). Fundamentals of Financial Management (12th Ed.). (pp. 130-133). United Kingdom: Pearson Education