Starbucks is a company that is worldwide. They offer a variety of coffee with over 32,000 locations around the world entering in 80 countries (Starbucks, n.d.). They have a proven track record when it comes to producing cash flow and being profitable (Starbucks, n.d.). Their operating operations has brought in $12.415 billion during the 2022 fiscal year even though this was a 5.88% decrease from the previous year (Starbucks, n.d.). The cash flow that Starbucks has generated has been gradually increasing over the past few years which shows a consistent trend that will most likely continue (Starbucks, n.d.). This could be due to their brand popularity, their constant expansion, and their emphasis on innovation. Starbucks has also invested $1.976 billion during the 2022 fiscal year (Starbucks, n.d.). That is a 32.4% increase from the previous year (Starbucks, n.d.). Their growth goals were the cause of the expenditure surge.

All of these things prove that Starbucks is a very well-positioned company financially. Their operating operations continue to produce a robust cash flow, and their balance sheet displays a significant amount of cash (Liu, 2022). Additionally, they continue investing in their expansion and paying back funds to their shareholders. This puts them in a strong position to expand and generate wealth for their investors (Liu, 2022). If I were a creditor, I believe that I would be very comfortable with giving Starbucks a loan. Their business not only has a strong foundation for expansion, a proven track record for profitability and cash flow creation, but they are just a well-ran business who remains devoted to their patrons and their brand (Liu, 2022). Although they face a variety of obstacles within their very competitive market, which includes labor costs and increased competition for online merchants, there are still more advantages than disadvantages regarding financing to Starbucks (Liu, 2022). They continue to show a promising future with a solid creditworthiness.

After reading the above, would it be useful for this company to develop a cash flow budget related to each of the projects you recommended? Who within the company would you want to work on a cash flow budget if that should be completed?