Over the past decade, Starbucks coffee shops have become an increasingly familiar part of the urban landscape.
Question:
Over the past decade, Starbucks coffee shops have become an increasingly familiar part of the urban landscape. The Thomson ONE-Business School Edition online database can provide a wealth of financial information for companies such as Starbucks. Begin by entering the company's ticker symbol, SBUX, and then selecting GO. The opening screen includes a summary of what Starbucks does, a chart of its recent stock price, EPS estimates, some recent news stories, and a list of key financial data and ratios.
For recent stock price performance, look at the top of the Stock Price Chart and click on the section labeled Interactive Chart. From this point, we are able to obtain a chart of the company's stock price performance relative to the overall market, as measured by the S&P 500. To obtain a 10-year chart, go to Time Frame, click on the down arrow, and select 10 years. Then click on Draw, and a 10-year price chart should appear.
You can also find Starbucks's recent financial statements. Near the top of your screen, click on the Financials tab to find the company's balance sheet, income statement, and statement of cash flows for the past 5 years. Clicking on the Microsoft Excel icon downloads these statements directly to a spreadsheet.
1. Looking at the most recent year available, what is the amount of total assets onStarbucks's balance sheet? What percentage is fixed assets, such as plant andequipment, and what percentage is current assets? How much has the companygrown over the years shown?
2. Does Starbucks have a lot of long-term debt? What are Starbucks's primarysources of financing?
3. Looking at the statement of cash flows, what factors can explain the change in thecompany's cash position over the last couple of years?
4. Looking at the income statement, what are the company's most recent sales andnet income? Over the past several years, what has been the sales growth rate?What has been the growth rate in net income?
Step by Step Answer:
Financial management theory and practice
ISBN: 978-1439078099
13th edition
Authors: Eugene F. Brigham and Michael C. Ehrhardt