Starbucks Corporation $($SBUX$)$ was founded in $1971$ and together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. The company offers its products under the Starbucks, Teavana, Seattle$$s Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve, and Princi brands.

Starbucks presents a unique opportunity for applying the tools of financial statement analysis, as we see by calculating some basic financial ratios.

Use the financial statements for $20212022$ found below to answer the following questions:

How would you assess the liquidity of Starbucks using the current ratio and acid$-$test ratios? Does the firm appear to have sufficient liquidity to meet its short$-$term financial obligations? Explain your findings.

Describe Starbucks$$ capital structure using the debt ratio and times interest earned ratios. What is your assessment of the firm$$s use of debt financing?

Perform an internet search to learn why Starbucks$$ equity is negative, should this be worrying to Starbucks$$ stockholders? Describe your findings.

Analyze the profitability of Starbucks$$ operations using the operating profit margin, net profit margin, operating return on assets, and return on equity ratios. Explain your findings.