Financial Statement Analysis

Project 1 – 481 -01/581 -01

Download the 3 years of Year-end Financial Statements including the most recent Year End

Financial Statements for Starbucks Corporation from SEC.gov (10 – K s) Complete the

following analytics:

Common size the Income Statement and Balance Sheet for each of the 3 Year End Statements

(20 pts)

Calculate and/or report the following: (45 pts)

 Sales Growth YOY – Most recent 2 years

 Gross Margin % - all 3 years

 Change in Gross Margin % -Most recent 2 years

 Profit Margin % - all 3 years

 Profit Margin Change YOY - Most recent 2 years

 Identify the drivers for the change in Profitability - all 3 years

 Asset Turnover- all 3 years

 Current Ratio – all 3 years

 Quick Ratio – all 3 years

 Cashflow from Operations for each year – all 3 years

 Cashflow from Financing for each year – all 3 years

 Cashflow from Investing for each year – all 3 years

 Cashflow Analysis

o Provide a one paragraph discussion on the CHANGES in the sources of cashflow

year over year (6 pts of 45 pts)

 Liabilities to Equity – all 3 years

 Debt to Equity Ratio (do not include 2020 Operating Lease Liability in 2020 for

comparison purposes) – all 3 years

Calculate: (20 pts)

Return on Assets – Most recent 2 years

Return on Equity – Most recent 2 years

Accounts Receivable Turnover - Most recent 2 years

Accounts Receivable as percent of sales – Most recent 2 years

Days Sales outstanding – Most recent 2 years

Days Inventory outstanding-Most recent 2 years

Days Payable Outstanding – Most recent 2 years

Cash Conversion Cycle – Most recent 2 years

Identify in a paragraph the driver of any changes in the in Cash Conversion Cycle from Prior

Year to Current year (4 pts of the 20 pts)

PPE Turnover - Most recent 2 years

PPE Useful Life - Most recent 2 years

PPE % used up – All 3 years

Format – You must UPLOAD YOUR EXCEL SPREAD SHEETS:

Tab for Common Size Income Statements – 3 Full Years

Tab for Common Size Balance Sheet – 3 Full Years

Tab for Ratio Calculations on Full Year Statements (You MUST show the numbers for the

calculation – you can NOT just link cells – no math/no points).

Write a two page or less narrative discussing the changes represented by your analysis of the

financial statements – (15 pts)

Be sure to address the drivers of the changes in:

Profitability

Cashflow

Return on Assets

Return on Equity

Any other key metrics