You will be analyzing Green Mountain Coffee (GMC). Attached is the financial information for 2009 for this company. One thing that I need to see, in addition to the detailed calculations for the required ratios, is data related to a competitor or others in the industry. You will need to pull this data from other sources (internet, etc). This Part 3 Essay is worth 100 points so please put forth your best effort!

I have attached peers answer so therefore it needs to be changed and answered completely different..If not familiar with analysis DO NOT take on!!Every pice taken off internet or from any source needs to be labeled ...

GREEN MOUNTAIN COFFEE ROASTERS INC.(GMCR) FINANCIAL ANALYSIS AND INTERPRETATION Determine the working capital and current ratios for 2009, 2010, and 2011 for the Green Mountain Coffee Roasters Inc. based on the information contained in the consolidated balance sheets in Appendix A. Did Green Mountain's working capital and current ratio increase or decrease from 2009 to 2011? (The 2009 data was taken from www.vuru.co) The Green Mountain Coffee Roasters Inc. is a strong corporation that has more than enough assets to cover its liabilities. In 2009 they had approximately 537.8M in current assets, 124.05M in current liabilities, 413.75M working capital, and a current ratio of 4.34 ("Strong Balance Sheet"). In 2010 they experienced a rough year where their current assets declined to 495.27M, current liabilities increased to 238.06M, working capital decreased to 257.21M, and their current ratio declined to less than half at 2.08. They were able to set new records in 2011 with total current assets increasing to 1,131.53M, increasing current liabilities to 471.37M, almost tripling the amount of working capital at 660.15M, and increasing their current ratio to 2.40. Their working capital increased in from 413.75M in 2009 to 660.15M in 2011 (a gain of 246.40M) while the current ration decreased from 4.34 in 2009 to 2.40 in 2011 (a loss of 1.93). What conclusions can you draw concerning the relative liquidity and efficiency of this corporation? How do Green Mountain's results compare with those of other companies in the same industry? Would you invest in this company? Defend your position on these issues in a one- or two-page typed response. Do not forget to include your calculations and comparisons in an easy to read chart format. GMCR Period Ending: Liquidity Ratios Current Ratio SBUX 9/24/2011 10/2/2011 240% 183% Quick Ratio 97% 136% Cash Ratio 9% 99% 34% 58% Operating Margin 14% 15% Pre-Tax Margin 11% 15% Profit Margin 8% 11% Pre-Tax ROE 16% 41% After Tax ROE 10% 28% Profitability Ratios Gross Margin The net sales in 2009 were 786.14M and the total assets were 813.84M. The net sales in 2010 were 1,356.78M and the total assets were 1370.57M. The average asset turnover for 2009 was 0.72 and .059 in 2010 (a decrease of .13). This number is calculated by averaging beginning and end year assets, dividing by two, and then dividing net sales by the average total assets. The asset return value is relatively low compared to competitors like Starbucks (SBUX). Based on my analysis of the balance sheets, GMCR is suffering from a cash problem. In 2011, GMC had a cash ratio of only 9%. That means that they only had enough cash on hand at the end of September 2011 to cover 9% of is liabilities. That for me is a huge concern. The acid or quick ratio was 97% which means that if they could quickly convert assets to cash they would only meet 97% of their total liabilities. I realize that these numbers are mostly industry specific, but personally I would not invest in any company that only had 9% cash on hand and was not liquid enough to meet its liabilities quickly if it needed to. Therefore, let's compare some of these metrics to SBUX. SBUX files their paperwork roughly during the same time period. On Oct 2nd, 2011 their current ratio was 183%, their quick ratio was 136%, and their cash ratio was 99%. Although their current ratio was lower than GMCR's 240%, their cash ratio and quick ration were dramatically less than SBUX. SBUX has allot more cash on hand compared to its liabilities than GMCR which allows the company to be act without having to rely on borrowing if an opportunity presents itself. Additionally if the creditors rang the doorbell and demanded full payment immediately, SBUX would have the ability to pay those debts almost entirely in cash whereas GMCR may be forced to close its doors as it doesn't have enough quickly convertible assets to even cover liabilities. That represents a bigger risk than I am willing to take when it comes to my own personal investment strategy. I would not invest in GMCR for a number of reasons in addition to those mentioned above. Coffee is a commodity, but luxury first and foremost. No one has ever died due to lack of coffee, although I am sure there are those who would claim they have come close. When money gets tight and people are struggling to make ends meet, the first thing to go is luxury. My investment dollars need to be there for my family to rely on when it comes time for me to retire. I cannot afford to wager my future on such a fickle product. In addition, GMCR only has a 8% profit margin and a 34% gross margin. I don't believe they are making a quality, long lasting product based on my own personal experiences, are making enough net profit off the transactions they are making, and have an operating margin that is too high for a product that doesn't require a physical location to sell. The after tax return on equity was only 10%. When compared to SBUX in the same time period, their return on equity was 28%. In conclusion, if I was forced to invest in the coffee commodity market there are companies that are producing a superior product, for less cost, are being managed better, and are more profitable than GMCR. They are not keeping enough liquid assets on hand to deal with their liabilities and if the trend continues they will be hard pressed to compete with companies like SBUX. References: "Strong Balance Sheet." Green Mountain Coffee Roasters Inc. (GMCR) Stock Analysis. Web www.vuru.co. 1 Nov. 2015