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Industry 2018 2017 Amounts Answer Amounts Answer Average Profitability Ratios (not applicable if net loss) $ Net Profit 3,582.1 Net Income 0.14 3,743.3 0.17 0.1561 Margin (% $ $ Sales 22,386.8 24,719.5 Return Net Income 3,582.1 3.05 3,743.3 0.69 1.8662 Total Equity $ on Equity (%) 1,175.8 5,457.0

Industry 2018 2017 Amounts Answer Amounts Answer Average Profitability Ratios (not applicable if net loss) $ Net Profit 3,582.1 Net Income 0.14 3,743.3 0.17 0.1561 Margin (% $ $ Sales 22,386.8 24,719.5 Return Net Income 3,582.1 3.05 3,743.3 0.69 1.8662 Total Equity $ on Equity (%) 1,175.8 5,457.0

FINANCIAL ACCOUNTING
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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Discuss what the profitablility ratios reveal about Starbucks financial health, including any description of trend analysis, benchmarks, standard measurements or other types of analysis used once the ratio amount is known.

Industry 2018 2017 Amounts Answer Amounts Answer Average Profitability Ratios (not applicable if net loss) $ Net Profit 3,582.1 Net Income 0.14 3,743.3 0.17 0.1561 Margin (% $ $ Sales 22,386.8 24,719.5 Return Net Income 3,582.1 3.05 3,743.3 0.69 1.8662 Total Equity $ on Equity (%) 1,175.8 5,457.0
Transcribed Image Text:Industry 2018 2017 Amounts Answer Amounts Answer Average Profitability Ratios (not applicable if net loss) $ Net Profit 3,582.1 Net Income 0.14 3,743.3 0.17 0.1561 Margin (% $ $ Sales 22,386.8 24,719.5 Return Net Income 3,582.1 3.05 3,743.3 0.69 1.8662 Total Equity $ on Equity (%) 1,175.8 5,457.0
Expert Solution
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Profitability ratios are used by investors and analyst to analyze the ability of a business to generate profits from its operations. These ratios help in measuring how well a company earn profit from its operations.

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