Financial Report Analysis of Starbucks Essay Example
na | Annual Report Analysis | Starbucks | | | Catherine YangYang Qiaochu杨翘楚2010201545商学院 工商管理英文实验班 |
1. Company’s Overview
Starbucks owns more than17, 000 stores in 55 countries at the fiscal year ended in 2011. During this year, its global revenues reached $11.7 billion, which is an 11% increase compared with 2009. The operation income of Starbucks reached $1.7 billion went up by 22%. What’s more Starbucks stock price also has increased by 43%.
2. Ratio Analysis
In order to have a better horizontal and vertical comparison, I choose the annual report data of Starbucks from 2009 to 2011 and one of its competitors, Caribou Coffee Company’s financial data.
1) Current Ratio
Current Ratio=Current Assets / Current Liabilities Year | Current Assets | Current Liabilities | Current Ratio | Industry | Caribou Coffee Company | 2011 | $3,794.9 | $2,075.8 | 1.8282 | 1.8278 | 2.4553 | 2010 | $2,756.4 | $1,779.1 | 1.5493 | | | 2009 | $2,035.8 | $1,581.0 | 1.2877 | | |
Current ratio measures the ability to pay short-term debts and other current liabilities of a company. It also measures a company’s short-term risk. As can be seen from the chart, the current ratio of Starbucks is almost the same as the industry average in 2011, which means that its ability to remain solvent is good. In addition, the best proportion of current assets and current liabilities is 2:1. So both Starbucks and the industry of specialty eateries do well in dealing with the current ratio.
2) Quick Ratio
Quick Ratio = (Current Assets – Inventories) / Current Liabilities Year | Current Assets | Inventories | Current Liabilities | Quick Ratio | Industry | Caribou Coffee Company | 2011 | $3,794.9 | $965.8 | $2,075.8 | 1.3629 | 1.4 | 1.8 | 2010 | $2,756.4 | $543.3 | $1,779.1 | 1.2439 | | | 2009 | $2,035.8 | $664.9 | $1,581.0 | 0.8671 | | |
Quick ratio measures a company's ability to meet its short-term obligations with its most liquid
1. Company’s Overview
Starbucks owns more than17, 000 stores in 55 countries at the fiscal year ended in 2011. During this year, its global revenues reached $11.7 billion, which is an 11% increase compared with 2009. The operation income of Starbucks reached $1.7 billion went up by 22%. What’s more Starbucks stock price also has increased by 43%.
2. Ratio Analysis
In order to have a better horizontal and vertical comparison, I choose the annual report data of Starbucks from 2009 to 2011 and one of its competitors, Caribou Coffee Company’s financial data.
1) Current Ratio
Current Ratio=Current Assets / Current Liabilities Year | Current Assets | Current Liabilities | Current Ratio | Industry | Caribou Coffee Company | 2011 | $3,794.9 | $2,075.8 | 1.8282 | 1.8278 | 2.4553 | 2010 | $2,756.4 | $1,779.1 | 1.5493 | | | 2009 | $2,035.8 | $1,581.0 | 1.2877 | | |
Current ratio measures the ability to pay short-term debts and other current liabilities of a company. It also measures a company’s short-term risk. As can be seen from the chart, the current ratio of Starbucks is almost the same as the industry average in 2011, which means that its ability to remain solvent is good. In addition, the best proportion of current assets and current liabilities is 2:1. So both Starbucks and the industry of specialty eateries do well in dealing with the current ratio.
2) Quick Ratio
Quick Ratio = (Current Assets – Inventories) / Current Liabilities Year | Current Assets | Inventories | Current Liabilities | Quick Ratio | Industry | Caribou Coffee Company | 2011 | $3,794.9 | $965.8 | $2,075.8 | 1.3629 | 1.4 | 1.8 | 2010 | $2,756.4 | $543.3 | $1,779.1 | 1.2439 | | | 2009 | $2,035.8 | $664.9 | $1,581.0 | 0.8671 | | |
Quick ratio measures a company's ability to meet its short-term obligations with its most liquid