Starbucks is today the world’s leading roaster and retailer of specialty coffee. The company purchases and roasts whole coffee beans and sells them, along with variety of freshly brewed coffees and other beverages, food items, and coffee related merchandise, in its retail shops. It also produces and sells bottled coffee drinks, a line of premium ice creams, and most recently, instant coffee products. Starbucks is one of the most recognized and respected brands in the world.Required:Evaluate the company's performance in terms of:a. Liquidityb. Profitabilityc. Long-term Solvency 20160.8 times0.3 times33.6 times10.9 days6.7 times54.5 days13.0 times28.1 ooys3.0%1.9times5.7%13.2%1.3times9.6times4.0times12.1%20150.8times0.3 times36.7 times9.9 days6.0 times60.8 days11.1 times32.9 days7.1%1.9 timesRelated Ratios:CurentratioQuick ratioReceivable turnoverDay'ssales uncolectedInventory tumoverDay'sinventory on handPayablesturnoverDay'spayableProfit marginAsset turnoverReturn on assetsReturn on equityDebtto equityInterest coverage ratioCash flow yieldCash flow to salesCash flow to assetsFree cash flowPrice Earnings ratio13.8%29.8%1.3times28.8times2.0 times14.1%27.2%$250.930.1 timesచర చెలె$274.235.5timesRequired:

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Answered: 2015 2016 0.8 times 0.3 times 33.6…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Starbucks is today the world’s leading roaster and retailer of specialty coffee. The company purchases and roasts whole coffee beans and sells them, along with variety of freshly brewed coffees and other beverages, food items, and coffee related merchandise, in its retail shops. It also produces and sells bottled coffee drinks, a line of premium ice creams, and most recently, instant coffee products. Starbucks is one of the most recognized and respected brands in the world.

Required:

Evaluate the company's performance in terms of:

a. Liquidity

b. Profitability

c. Long-term Solvency

2016
0.8 times
0.3 times
33.6 times
10.9 days
6.7 times
54.5 days
13.0 times
28.1 ooys
3.0%
1.9times
5.7%
13.2%
1.3times
9.6times
4.0times
12.1%
2015
0.8times
0.3 times
36.7 times
9.9 days
6.0 times
60.8 days
11.1 times
32.9 days
7.1%
1.9 times
Related Ratios:
Curentratio
Quick ratio
Receivable turnover
Day'ssales uncolected
Inventory tumover
Day'sinventory on hand
Payablesturnover
Day'spayable
Profit margin
Asset turnover
Return on assets
Return on equity
Debtto equity
Interest coverage ratio
Cash flow yield
Cash flow to sales
Cash flow to assets
Free cash flow
Price Earnings ratio
13.8%
29.8%
1.3times
28.8times
2.0 times
14.1%
27.2%
$250.9
30.1 times
చర చెలె
$274.2
35.5times
Required:

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