Starbucks Financial Statements Analysis
Autor: Maryam • November 1, 2018 • 866 Words (4 Pages) • 637 Views
...
Property, Plant and Equipment: “Depreciation of property, plant and equipment, which includes assets under capital leases, is provided on the straight-line method over estimated useful lives, generally ranging from 2 to 7 years for equipment and 30 to 40 years for buildings”.
The topics of the notes: 1) Summary of significant accounting policies, 2) Restructuring charges, 3) Investments. 4) Derivative Financial Instrument, 5) Fair value measurements. 6) Inventories, 7) Equity and cost investment, 8) Property, plant and equipment, 9) Other intangible assets and goodwill, 10) Debt, 11) Other long-term liabilities, 12) Leases, 13) Shareholders’ equity, 14) Employee stock and benefit plans, 15) Income taxes, 16) Earnings per share, 17) Commitments and contingencies, 18) Segment reporting, 19) Subsequent event, 20) Summarized quarterly financial information
FINANCIAL ANALYSIS LIQUIDITY RATIOS
Year
2015
2016
Working Capital
(Increased $50.1 M)
$ -26.3 M
$23.8
Current Ratio
(Increased 0.18)
0.9
1.08
Receivable turnover
(Increased 5 times)
31.5 times
36.1 times
Average days’ sales uncollected
(Decreased 1.5 days)
11.6 days
10.1 days
Inventory turnover
(Decreased 0.2 times)
6.7 times
6.5 times
Average days’ inventory on hand
(Increased 1.7 days)
54.5 days
56.2 days
Year
2015
2016
Profit margin
(increased 0.96%)
3.04%
4%
Asset turnover
(decreased 0.08 times)
1.83 times
1.75 times
Return on assets
(increased 1.44%)
5.56%
7%
Return on equity
(decreased 0.1 %)
12.8%
12.7%
FINANCIAL ANALYSIS PROFITABILITY RATIOS
FINANCIAL ANALYSIS SOLVENCY RATIO
Year
2015
2016
Debt to equity
(decreased 44.6%)
127.7%
83.1%
The decrease over two years indicates that Starbucks’s assets financed by creditors were declined.
FINANCIAL ANALYSIS MARKET STRENGTH RATIOS
Year
2015
2016
Price/earnings per share
(increased 2.3 times)
21.8 times
24.1 times
Dividend yield
No dividend
No dividend
Price per share over earning per share increased, which shows that investors were holding confidence in Starbucks’s future.
---------------------------------------------------------------
References
SBUX Income Statement. (n.d.). Retrieved July 27, 2017, from http://www.nasdaq.com/symbol/sbux/financials?query=income-statement
SBUX Balance Sheet. (n.d.). Retrieved July 22, 2017, from http://www.nasdaq.com/symbol/sbux/financials?query=balance-sheet
(n.d.). Retrieved July 22, 2017, from http://seerpress.com/starbucks-plan-to-raise-price-for-labor-intensive- and-larger-sized-drinks/7721/
(n.d.). Retrieved July 22, 2017, from https://investor.starbucks.com/financial-information/annual-reports/default.aspx
Starbucks Corp. (n.d.). Retrieved July 22, 2017, from http://www.marketwatch.com/investing/stock/sbux/financials
...