Accounting course Project : Financial Statement Analysis

A ratio analysis is a quantitative analysis of information contained in a company's financial statements. Ratio analysis is used to evaluate various aspects of a company's operating and financial performance such as its efficiency, liquidity, profitability and solvency.

Based off Starbucks financial assessment Starbucks’ operating income is the primary source of cash. Through operations, the company has three primary sources of cash. These are company-operated restaurants, consumer packaged goods (CPG) and foodservice, and licensed stores. The company-operated restaurants entail Starbucks Corporation managing all aspects of the stores. CPG/foodservice includes all sales of Starbucks Corporation’s coffee and tea products, whether it be to consumers or foodservice companies. Licensed stores bring revenues to Starbucks through royalties and licensing fees. All Starbucks franchise locations account for about 10% of the corporation’s revenues.

The asset accounts experienced the most significant changes from year to year, as they continued to increase the most. The events that may have caused these changes were the corporation’s continued expansion both domestic and globally, such as the non-cash acquisition related gain from Starbucks Japan.

There is always a growing demand for Starbucks and always new products to come. Despite the economy there will be significant events that can be catered such as graduation, birthday, weddings, fairs, conference. With those events, we can-do discounts and run specials to keep revenue flowing. Marketing techniques is always an option to keep afloat. Starbucks’s operating fundamentals remain strong- solid global retail footprint, successful innovations, best –in –class loyalty program and digital offerings and rapid growth in the international markets.

Overview of Starbucks Corporation