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 a 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 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: Starbucks CorporationConsolidated Balance SheetsSeptember 28, 2016, and September 30, 2015Increase (Decrease)Amount(Dollar amounts in millions)20162015PercentageAssetsCurrent assets:Cash and cash equivalents$269.8$281.3$(11.5)(4.1)Short-term investments52.5157.4(104.9)(66.6)Accounts receivable, net329.5287.941.614.4Inventories692.8691.71.10.2Prepaid and other current assets169.2148.820.413.7Deferred income taxes, net234.2129.4I04.881.0Total Current assets$1.748.0$1.696.5$51.53.0Long-term investments374.0279.994.133.6Property, plant and equipment, net2,956.42,890.466.02.3Other assets261.1219.441.719.0Other intangible assets66.642.124.558.2Goodwill266.5$5,672.6215.650.923.6Total assets$5,343.9$328.76.2

Liquidation is the process by which a company is terminated. In addition, the company's assets and…

Answered: Starbucks is today the world’s leading…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

100%

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 a 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 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:

Starbucks Corporation
Consolidated Balance Sheets
September 28, 2016, and September 30, 2015
Increase (Decrease)
Amount
(Dollar amounts in millions)
2016
2015
Percentage
Assets
Current assets:
Cash and cash equivalents
$269.8
$281.3
$(11.5)
(4.1)
Short-term investments
52.5
157.4
(104.9)
(66.6)
Accounts receivable, net
329.5
287.9
41.6
14.4
Inventories
692.8
691.7
1.1
0.2
Prepaid and other current assets
169.2
148.8
20.4
13.7
Deferred income taxes, net
234.2
129.4
I04.8
81.0
Total Current assets
$1.748.0
$1.696.5
$51.5
3.0
Long-term investments
374.0
279.9
94.1
33.6
Property, plant and equipment, net
2,956.4
2,890.4
66.0
2.3
Other assets
261.1
219.4
41.7
19.0
Other intangible assets
66.6
42.1
24.5
58.2
Goodwill
266.5
$5,672.6
215.6
50.9
23.6
Total assets
$5,343.9
$328.7
6.2

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions