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Refer to Tables A-1 through A-5 in Appendix II of the text for the... The chosen company is Starbucks Here is a link for 2022

Refer to Tables A-1 through A-5 in Appendix II of the text for the...

The chosen company is Starbucks

Here is a link for 2022 financial report:

https://investor.starbucks.com/press-releases/financial-releases/press-release-details/2022/Starbucks-Reports-Q4-and-Full-Year-Fiscal-2022-Results/default.aspx

Refer to Tables A-1 through A-5 in Appendix II of the text for the operational definitions of and formulas for numerous common financial ratios, including profitability, liquidity, leverage, activity, and shareholders' return. Using these formulas, least one ratio from each of the five categories, though you may apply as many of the ratios for which you can find the required information in the firm's financial reports. On your calculations page, specify for which formulas you are solving.

In an assessment address the following:

This is what they are asking to be addressed:

  1. Determine which of the ratios provide the most key insights into the firm's current level of performance. How can you assess whether the results of your calculations are positive or negative? Explain which of the ratios give you reason to be concerned with the organization's current strategy and why.
  2. The Organizational and Operational Plans assignment references the possible benefits and risks of forming a strategic alliance. What would be the risks of forming a strategic alliance in terms of the firm's profitability ratios? Which of those five ratios is most likely to reveal immediate information for analysis of the alliance's effectiveness?
  3. Considering today's financial climate, how likely is it that the organization could acquire the capital necessary to support an aggressive value-enhancement strategy? From where would that capital originate? Compared to current interest rates, what do you believe is a realistic interest rate the firm might incur? Which of the liquidity ratios will be impacted by the influx of capital, if borrowed?

Please cite source

This is all the information we have been given. And the formulas are listed within the information in the tables.

image text in transcribedimage text in transcribed
Profits before taxes and interest + The firm's ability to meet all 5. Fixed charge Lease obligation / Total interest fivecharge obligations including coverage charges + Lease obligations lease payments Table A-4 Activity Ratios Ratio Formula What It Shows The effectiveness of the firm 1. Inventory turnover Sales / Inventory of finished good iemploying inventory 2. Fixed-ussets The effectiveness of the firm in tumover Sales / Fixed assets utilizinglent and equipment 3. Total assets The effectiveness of the firm in tumover Sales / Total assets utilizingtal assets How many times the total 4. Accounts Annual credit sales / Accounts receivables have been collected receivable turnover receivable during the accounting period The average length of time the 5. Average collecting Accounts receivable / Average firmwets to collect payment period daily sales after sales Table A-5 Shareholders' Return Ratios Ratio Formula What It Shows A measure of return to common 1. Dividend yield on Annual dividend per share / stock-holders in the form of common stock Current market price per share dividends An indication of market perception of the fim; usually. the fester-growing orless risky firms tend to have higher 2. Price-earnings Current market price per share / PEratios than the slower- ratio After-tax earnings per share growing or more risky firm 3. Dividend payout Annual dividends per share / An indication of dividends paid ratio After-tex earnings per share out as a percentage of profit After-tax profits + Depreciatio A measure of total cash per Number of common shares share avail-able for use by the 4. Cash flow per shar outstanding firmAnalysis in Case Studies Table A-1 Profitability Ratio TABLE A-1 Ratio formula WHAT IT SHOWS 1. Return on total The net return on total Profits after taxes/Total assets investments of the firm or or Profits after taxes + Interes / Total The return on both creditors" and shareholders' investments 2. Retum on stockholders' equity for retum on net Profits after taxe / Total How profitably the company is worth) stockholders' equity utilizingshareholders' funds Profits after taxes - Preferred stock dividend / Total 3. Return on stockholders' equity - Parvalue of |The net return to common common equity preferred stock stockholders 4. Operating profit margin for rectum on Profits before taxes and before The firm's profitability from interes / Sales regulaoperations 5. Net profit margin for netreturn on The firm's net profit b: 2 cules) Profits after taxe / Sales percentage of total sales Table A-2 Liquidity Ratios Ratio Formula What It Shows Total borrowed fund: as a 1. Current ratio Total debt / Total assets percentage of total assets Total debt / Total shareholders' Borrowed funds versus the funds 2. Debt-to-equity equity provided by shareholders 3. Long-term debt- Long-term debt / Total to-equity shareholders' equity Leverage used by the fir 4. Times-interest- cared for coverage Profits before interest and taxe / The firm's ability to meet all ratiol Totel interest charges interestpayments

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