Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need assistance for the following ration analysis 2014, 2015, and 2016. Please use in an excel spreadsheet. Some ratios require revision: Debt - include current
Need assistance for the following ration analysis 2014, 2015, and 2016. Please use in an excel spreadsheet.
Some ratios require revision:
Debt - include current portion of LT debt.
EBITDA-include current portion of LT debt (principal payment).
BEP-Use operating income, not net income
Use the extended DuPont equation to provide a summary and overview of your firm?s financial condition.
Please see attachment
Webster University Advance Corporate Finance FINC5880 Interim Report 1 Starbucks ADRIANE FISHER AMONICA GIBSON ANTHONY COLE PRISCILA FUNES SARAH HARTON Executive Summary The purpose of the Starbucks interim paper is to provide a clear financial perspective of the company within the industry. This paper examines Starbucks financial data and financial statements from 2014, 2015, and 2016, extracted from the Securities Exchange Commission. It uses a consolidated Balance Sheet (Appendix A), a consolidated Income Statement (Appendix B), and a consolidated Statement of Cash Flows (Appendix C) for the analysis of the company's financial standing in the Industry. It compares Starbucks' financial ratios with the industry and provides information for potential investors. The report provides the tools necessary to make sound investment decisions within the industry, as well as a historical look at stock offerings and the IPO. Overview Many Americans cannot imagine a time without Starbucks; it is a daily staple in the lives of the masses. This coffee shop chain got its start in 1971, in Seattle, Washington with just a single store (Heritage). Little known to its daily patrons, the chain was originally named after a character from the book Moby-Dick, the first mate, Starbuck. The highly recognizable Starbuck's logo was also connected to the shop's name; Starbuck was the name of an island where the Sirens of Greek Mythology shipwrecked sailors (Madison, 2011). The green and white woman in the logo is, in fact, a Greek Siren (one that has 2|Page evolved over the years of operation) (Marshall, 2015). Knowing this background, it should come as no surprise that one of the founders of Starbucks was a writer and the other two were teachers (Madison, 2011). The first Starbucks store was opened by Gordon Brown (the writer), Jerry Baldwin, and Zev Siegl. It was located in the Pike Place Market area of Seattle (not the same Pike Place location as today). By 1982, there were 5 Starbuck's locations in and around Seattle (Melody, 2015). In 1987, the company was bought by Howard Schultz (previously a director of marketing for the company), and Starbucks began to become the chain that is familiar today. The original intent of the stores was as a place to buy freshly roasted beans, teas, and spices; but under Schultz, fresh off a trip spent observing coffee shops in Italy, the shop adopted its purpose as a place to sit, converse, and drink coffee (Marshall 2015). The company website describes their intentions to \"share great coffee with our friends and help make the world a little better\" (Heritage). In 1992, Starbucks went public on the NASDAQ exchange, kicking off a decade of growth for the company (Marshall, 2015). The company has experienced many ups and a few downs since then, currently operating with about 24,000 stores spread among 70 different companies (according to the company website). Their first store outside the US was in Japan, in 1996, spreading to more and more countries in the following years. Along the way, they have made many acquisitions: Evolution Fresh, Teavanna, Ethos Water, competing coffee chains (Seattle Coffee Company), Tazo (Walker, 2016). Buying up these brands and collaborating with others has allowed Starbucks to continue to grow and expand. Some say that Starbucks has moved away from Schultz's initial goal of being a \"third place... a real-life site that hosts the regular, voluntary, informal, and happily anticipated gatherings of individuals beyond the realms of home and work\Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started