This question is from Financial Reporting, Financial Statement Analysis and Valuation (8th Edition).

Exhibit 5.27 presents risk ratios for Starbucks for 2010 and 2011. Exhibits 1.26, 1.27, and 1.28 in Chapter 1 present the financial statements for Starbucks REQUIRED a. Compute the values of each of the ratios in Exhibit 5.27 for Starbucks for 2012. Starbucks had 749.3 million Common Shares outstanding at the end of fiscal 2012, and the market price per share was $50.71. For days accounts receivable outstanding, use only specialty revenues in your calculations, because accounts receivable are primarily related to licensing and food service operations, not the retail operations b. Interpret the changes in Starbucks risk ratios during the three-year period, indicating areas of Concern Exhibit 5.27 Starbucks Risk Ratios (Integrative Case 5.1) 2011 2010 2012 Current ratio 1.55 1.83 Quick ratio 1.17 0.98 Operating cash flow to current liabilities ratio 084 1.01 Days accounts receivable outstanding 61 60 Days inventory held 56 50 Days accounts payable outstanding 23 28 Net days of working capital financing needed 89 87 Liabilities to assets ratio 0.40 042 Liabilities to shareholders' equity ratio 0.68 0.73 Long-term debt to long-term capital ratio 0.11 0.13 Long-term debt to shareholders' equity ratio 0.13 0.15 Interest coverage ratio 47.9 54.3 057 Operating cash flow to total liabilities ratio 0.65 9.094 Altman's Z-score 7.577 Probability of bankruptcy 0.0% 0.0%