Rough Ratio Analysis Framework
RATIO CALCULATION
RISK RATIOS
Liquidity
Receivables turnover ratio
Average collection period
Inventory turnover ratio
Average days in inventory
Current ratio
Acid-test ratio
Solvency
Debt to equity ratio
Times interested earned ratio
PROFITABILITY RATIOS
Gross product ratio
Return on assets
Profit margin
Asset turnover
Return on equity
Return on the market value of equity
Earning per share
Price-earnings ratio
Justification Of Chosen Firm
I originally chosen Boeing corporation as my company , but due to the fact that it is not an easy task to get a hold of them to ask about their business without some serious travel , it is decided that I will go with Starbucks instead .
Why Starbucks? There are many reason why Starbucks fit for me . One it is the way the Starbucks run their business. It is the idea that customer experience should be unified and prioritize as the core of the business that I whole heartedly agree with . From the humble beginning of 1971 to the blitzkrieg expansion across the globe of recent day , Starbucks demonstrated clear and steady vision of its growth and future . I find that to be very lacking as of today’s business as the world economy rest on the brink of uncertainty. Though the economic downfall of 2008 did a number on them, it is clear that they’re weathering it through and will regain momentum once the world’s economy pick itself up .
What I Learned From The Numbers
RECEIVABLES TURNOVER RATIO
MEANING:
STANDARD:
FINDING/RESULTS:
PRIOR YEAR:
AVERAGE COLLECTION PERIOD
MEANING:
STANDARD:
FINDING/RESULTS:
PRIOR YEAR:
AVERAGE DAYS IN INVENTORY
MEANING:
STANDARD:
FINDING/RESULTS:
PRIOR YEAR:
CURRENT RATI
ACID-TEST RATIO
MEANING:
STANDARD:
FINDING/RESULTS:
PRIOR YEAR:
DEBT TO EQUITY RATIO
TIMES INTEREST EARNED RATIO
MEANING:
STANDARD:
FINDING/RESULTS:
PRIOR YEAR:
GROSS PROFIT RATIO
MEANING:
STANDARD:
RISK RATIOS
Liquidity
Receivables turnover ratio
Average collection period
Inventory turnover ratio
Average days in inventory
Current ratio
Acid-test ratio
Solvency
Debt to equity ratio
Times interested earned ratio
PROFITABILITY RATIOS
Gross product ratio
Return on assets
Profit margin
Asset turnover
Return on equity
Return on the market value of equity
Earning per share
Price-earnings ratio
Justification Of Chosen Firm
I originally chosen Boeing corporation as my company , but due to the fact that it is not an easy task to get a hold of them to ask about their business without some serious travel , it is decided that I will go with Starbucks instead .
Why Starbucks? There are many reason why Starbucks fit for me . One it is the way the Starbucks run their business. It is the idea that customer experience should be unified and prioritize as the core of the business that I whole heartedly agree with . From the humble beginning of 1971 to the blitzkrieg expansion across the globe of recent day , Starbucks demonstrated clear and steady vision of its growth and future . I find that to be very lacking as of today’s business as the world economy rest on the brink of uncertainty. Though the economic downfall of 2008 did a number on them, it is clear that they’re weathering it through and will regain momentum once the world’s economy pick itself up .
What I Learned From The Numbers
RECEIVABLES TURNOVER RATIO
MEANING:
STANDARD:
FINDING/RESULTS:
PRIOR YEAR:
AVERAGE COLLECTION PERIOD
MEANING:
STANDARD:
FINDING/RESULTS:
PRIOR YEAR:
AVERAGE DAYS IN INVENTORY
MEANING:
STANDARD:
FINDING/RESULTS:
PRIOR YEAR:
CURRENT RATI
ACID-TEST RATIO
MEANING:
STANDARD:
FINDING/RESULTS:
PRIOR YEAR:
DEBT TO EQUITY RATIO
TIMES INTEREST EARNED RATIO
MEANING:
STANDARD:
FINDING/RESULTS:
PRIOR YEAR:
GROSS PROFIT RATIO
MEANING:
STANDARD: