Question 1: Compute the following ratios for Starbucks
-current ratio
-inventory turnover ratio
-accounts receivable turnover ratio
-debt to equity
-return on assets
-return on equity
-gross margin on sales
Question 2: What do these ratios indicate about the company?
Question 3: Who would be interested in each of the ratios listed above? Why?
Question 4: How well is this company doing? If possible, find the industry ratios for comparison.
Question 5: What other information would be useful for investors and creditors in making economic decisions about this company?
Question 6: Would you invest in this company?