Analysis of Annual Report of Starbucks

2. Starbucks enjoyed strong financial performance in 2011. The company did not explicitly attribute this, but with an 8% rise in same store sales it seems that either the consumer market bounced back, or Starbucks made changes that attracted more consumers. The company feels that it offered better products and a better experience at its stores. The company also credited operating efficiencies and tight control of spending for improved profits. In addition, the company continued its global expansion, which improved the top line, and used the economies of scale it generated as part of its cost control program.

Net earnings increased from year 6 to year 7. There was a 313.40% increase in net earnings; this is a clear strength for the company in these astounding earnings as an indicator that the company was very profitable during this period. This data shows the company improved its bottom line and expenses did not exceed income. However, for years 7 and 8 the change in net earnings was reported at -81.6% with a decrease change of $218,392.

Using these numbers show a ratio of 1.549; this is a fairly low number for a company considering anything under “1” is reason for concern. Starbucks reported their current assets as $2,035.8M and $1,581.0M in 2009. Using these numbers show a ratio of 1.287; this number is also considerably low but does show improvement from 2009 to 2010. Starbucks acknowledges the need for liquidity but comply with federally limits and believes the credit risk to be very minimal (Starbucks Corporation, 2010).

Operating income became $1.2 billion, it is smaller than 2014 by 23%. Interest expense was $255 million, including the impact of $138 million in merger financing costs. Net earnings decreased by $245 million, or 26%.

Starbucks financial statements were analyzed for the fiscal year ended September 27, 2015. Like all public companies, annual and quarterly financial statements are required to allow regulators and other interested parties to analyze the financial status and management decision making of the company. This analysis focuses on the results of Starbucks most recent published annual report containing their balance sheets, statement of earnings and cash flows. These statements will be analyzed against the results of one of its competitors, Dunkin Donuts, to investigate how the two companies compare to each other. It was noted that Starbucks and Dunkin Donuts do not have corresponding fiscal year ends. The data therefore is not directly comparable since the reports do not reflect the same time period of data but should provide additional insight. The paper will attempt to provide a brief analysis of Starbucks operations in terms of its liquidity, leverage, activity, profitability and growth ratios used by analysts in the industry.

Since 2016, operating income decreased while net income increased. Operating income decreased from 4,116 to 3,760. Net income increased from 2,181 to 2,244. In 2016, total operating revenues increased from 19,820 to 20,425 which is most likely because of an increase in their research and development. As for operating expenses, jet fuel prices are a huge factor because of fluctuating costs. In 2016, operating expenses increased from 15,704 to 16,655.

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Operating profit increased by 11 percent to $322 million in the 2011 first quarter from $291 million in the 2010 period. Operating profit, as a percentage of sales, was 9.3 percent in both years. First quarter 2011 adjusted operating profit increased by nine percent to $335 million, or 9.7 percent of sales, from $306 million, or 9.8 percent of sales, in the 2010 period. Interest expense was $66 million in the 2011 first quarter compared to $72 million in the 2010 first quarter due to lower average outstanding borrowings resulting from the Company's repurchases of long-term obligations and lower interest rates.

Abstract After decades of grande growth based on the Starbucks experience, Starbucks Coffee Company experienced continuous drop of stock price since the beginning of 2007. Upon first glance of their financial statements, there was 20% increase in revenues and 9% increase in net income last year. Such growth could be counter

The profitability ratio is a class of financial metrics that are used to assess a business's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time (Investopedia, 2014). It is used to determine how profitable a company is over a period of time, generally one year. The profitability ratio for Grace Kennedy group is shown below for 2009 through to 2013.

and the nature of the industry. Net income has ranged from a net loss of $1.9 billion in 2009, to a

Starbucks Corporation purchases and roasts high-quality coffees, along with beverages and fresh food items, throughout all company-operated stores. The consolidated financial statements reflect the financial position and operating results of Starbucks Corporation. Ratio Analysis was used to analyze the performance of Starbucks using the financial ratios of liquidity, solvency, and profitability. Calculations and amounts were provided in the excel spreadsheet labeled (Financial Ratios). All data provided were conducted for the balance sheet and income statement accounts over the fiscal years 2015 and 2014. Starbucks Corporations ' fiscal years’ end on the Sunday closest to September 30 (sec.gov).

An overview perspective shows that Starbucks is just slightly below the industry average in most categories. This is a negative aspect in some ratios such as current ratio but could be considered a positive in other ratios such as the Debt ratio.

According to Starbucks’ 2011 Annual Report, the company is the premier roaster, marketer and retailer of specialty coffee in the world, with over 17,000 stores in more than 55 countries, as of fiscal year 2011. 2011 was an important year for the company in that it celebrated its 40th anniversary (it was founded in 1971 in Seattle, with its first store in the historic Pike’s Place Fish Market) and also enjoyed one of its best years ever in terms of financial performance, with global revenues reaching $11.7 billion, an 11% same-store increase over 2010 for the company overall, with global sales (over the same period) rising more than 8%. CEO Howard Schultz noted that these impressive results were achieved during a time of dramatically rising commodity prices, including coffee, as well as a continually weak economic environment around the world, particularly in Europe and the U.S. Due to the company’s strong performance over the last several years—a time during which time Howard Schultz instituted a dramatic turn-around strategy to cut expenses, close non-performing stores and pull back on some of its peripheral brand extensions like music and food—Starbucks is bullish on its prospects for future growth, particularly in foreign markets, where it plans to open 800 new stores in 2012, including its first-ever in India, where it is partnering with Indian conglomerate Tata. Starbucks began its strategy of expansion abroad in 1987, when it entered Canada. Its first foray into a

By executing strategic moves in five phases, the company bounced back to become a main staple in everyday life. “Starbucks is present in 50 states in the US and 43 countries. It is one of the most respected brands, winning awards such as “Best Business”, “Most Admired Company”, “100 Best Corporate Citizens” and so on” (Husain, Khan, Mirza, 2014.) Starbuck’s current position amongst its competitors is clear in that all others fall behind. However, as explained in the article, this was not always the case. Very few businesses faced little turmoil when the recession took place. Starbucks Corporation did not escape this fate, but instead of continuing to tread water, the company brought on a different CEO who held a different