Starbucks Anaysis

Topics: Accounts receivable, Balance sheet, Generally Accepted Accounting Principles Pages: 3 (570 words) Published: May 4, 2014

Total Current Assets and Liabilities of Starbucks Corporation for past 4 years: Period Ending
Sept. 29, 2012
Sept. 29, 2011
Sept. 29, 2010
Sept. 29, 2009

Total Current Assets
4.2B
3.8B
2.8B
2.0B

Total Current Liabilities
2.2B
2.1B
1.8B
1.6B

As you can see from above chart, the total Current Assets of Starbucks has increased from $2.0 billion in 2009 to $4.2 billion in 2012. Its total Current Liabilities was 1.6 billion in 2009 and 2.2 billion in 2012. Starbucks total Accounts Receivable was $271 million in 2009 which increased to $485.9 million in 2012. This may be due to opening of increased number of stores. The company wrote off $5 million as bad debt in 2009, $3.3 million in 2011 and 5.6 million in 2012. Its Accounts Payable has increased from $267.1 billion in 2009 to 398.1billion in 2012. Although debt as a percent of total capital increased at Starbucks Corporation over the last fiscal year to 22.47%, it is still in-line with the Hotels, Restaurants and Leisure industry's norm. Additionally, even though there are not enough liquid assets to satisfy current obligations, Operating Profits are more than adequate to service the debt. Accounts Receivable are typical for the industry, although worsening, with 12.80 days worth of sales outstanding. Last, Starbucks Corporation is among the most efficient in its industry at managing inventories, with only 67.09 days of its Cost of Goods Sold tied up in inventory.

Data Sources:
Market and financial statement data provided by NASDAQ, BATS Exchange, SEC and Xignite Inc. Industry and operating metrics collected from company filings via EDGAR online The above chart shows Starbucks current ratio for past 5 years. The current ratio measures a company's ability to pay short-term debts and other current liabilities (financial obligations lasting less than one year) by comparing current assets to current liabilities. The ratio illustrates a company's ability to remain solvent. A current...

Cited: http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=SBUXHYPERLINK "http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=SBUX&dataset=balanceSheet&period=A¤cy=native"&HYPERLINK "http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=SBUX&dataset=balanceSheet&period=A¤cy=native"dataset=balanceSheetHYPERLINK "http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=SBUX&dataset=balanceSheet&period=A¤cy=native"&HYPERLINK "http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=SBUX&dataset=balanceSheet&period=A¤cy=native"period=AHYPERLINK "http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=SBUX&dataset=balanceSheet&period=A¤cy=native"&HYPERLINK "http://investing.businessweek.com/research/stocks/financials/financials.asp?ticker=SBUX&dataset=balanceSheet&period=A¤cy=native"currency=native
http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsannual
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