Question: Accounting standards and financial statement analysis
Instructions: Use the latest financial statements from Starbucks to compute ratios for the categories listed below. Use the formulae shown in the segment on "tools for financial statement analysis."
Incorporate responses to the questions below in an organized format. Start with an introduction and end with a conclusion/summary.
Assignment: Compute two ratios for each of the following categories.
- Liquidity ratios
- Debt service ratios
- Profitability ratios
Compare the ratios computed with industry ratios. Use IBISWorld.
Show the computations and summarize the information in an easy to read table.
Write a three-paragraph memo to comment on the ratios computed and how the company is doing relative to its industry.
Paragraph 1: What is the purpose of computing the ratios?
Paragraph 2: What did you learn?
Paragraph 3: Conclusion/summary of the information.