Assignment: Starbucks-Financial Ratio Analysis
Complete a ratio analysis for THE COMPANY. Remember that you are the financial analyst of THE COMPANY and should prepare the report to be read by the chairman/CEO of THE COMPANY. The ratio analysis should be completed from the point of view of company management.
The chairman of THE COMPANY is especially concerned about the following groups of ratios:
Liquidity (current ratio, quick ratio, and net working capital-to-sales ratio)
Operating performance ratio turnovers (Days of Sales in Inventory, Days of Sales in Receivables)
Profitability ratios (Gross Profit Margin, Operating Profit Margin, Net Profit Margin)
Return on Investment ratios (Basic Earning Power ratio, ROA, ROE)
You can find financial ratios for the company for the last three years on the financial websites or calculate them. If you use published ratios please provide your source.
Create a table presenting these ratios, and provide graphs to illustrate three year trends for some of them. You can choose a few ratios of interest to graph, you don't have to graph every one provided.
Write an analysis of the ratio results that you found. In your analysis you should answer the following questions:
How liquid is the company?
How well is profit being generated from company assets?
What can management do to improve financial performance?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.