Starbucks

1. Download Starbucks annual reports and financial statements:

Starbucks 2018 Annual Report (Pdf)

Starbucks 2017 and 2018 Annual Financial Statements (Excel)

2. Calculate financial ratios: (Step 1)

Calculate the following financial ratios for fiscal year 2018 only using the “Consolidated Statements of Earn” and “Consolidated Balance Sheets” worksheets in Starbucks 2017 and 2018 Annual Financial Statements (Excel). Create a new worksheet called “Ratios” in the same file.

Current Ratio, Cash Ratio, Inventory Turnover, Days Sales in Inventory, Long Term Debt Ratio, Times Interest Earned, Gross Profit Margin, Net Profit Margin, Return on Equity, Return on Assets.

Review the financial ratios recorded lecture in Module 1 for help.

3. Financial Analysis (Step 2)

A. Discuss Starbucks investment spending (capital budgeting) for fiscal year 2018. Choose 2 ratios from the textbook Chapter 3 to support your findings.(such as Profitability ratios, Market Value Ratios, Asset Management or Turnover Ratio, short term solvency and Long term solvency)

B. Discuss Starbucks financing activities for fiscal year 2018. Choose 2 ratios from textbook Chapter 3 to support your findings.(such as Profitability ratios, Market Value Ratios, Asset Management or Turnover Ratio, short term solvency and Long term solvency)
Instructions:

Ratio Calculations in Excel

Compute the ratios in the “Starbucks 2017 and 2018 Annual Financial Statements” Excel file given above. Create a new worksheet called “Ratios”.

Written Report

Prepare a Word document, approximately 4-6 pages.

The document should be double-spaced, using Arial font #12.

Add any Appendices at the end of the Word document.

Your reference sources should be Starbucks annual report and online sites and articles, Bloomberg terminals, your Integrated Semester textbooks, and other sources you professor assigns.

Turnitin, a software tool that improves writing and prevents plagiarism, will be used to assess your sourcing of information. Do your own work.