Financial Analysis Starbucks Corp. Fin 540

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Running head: FINANCIAL RATIO ANALYSIS STARBUCKS CORP.

Financial Ratio Analysis Starbucks Corporation
University of Phoenix
FIN/540 Managerial Accounting and Finance Foundations
September 19, 2011

Financial Ratio Analysis Starbucks Corporation Starbucks Corporation is the global leader in coffee and has a strong entrepreneurial history of product development and branding. Ranked as both a Fortune 500 and Fortune 1000 Best Company to Work For Starbucks employs 116,357 team members in the United States (Fortune, 2010). Starbucks (SBUX) Corporation according to Plunkett Research, Ltd. ranks in their industry group as number one in sales and profits. National and internationally Starbucks Corporation own 16,858 stores
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2010 total debt ratio of 0.15 or 15% measures the corporation’s percentage finance with debt. Reviewing the three selected leverage ratios provides a positive outlook for the financial stability of Starbucks. With increased profitability and low financial leverage shareholders long-term returns remain profitable. Figure 1 Financial Leverage Trend
|Times Interest | | | | | |
|Earned % |2010 |2009 |2008 |2007 |2006 |
|Starbucks |12.04 |4.47 |3.33 |10.08 |10.43 |
|Industry |6.04 |4.51 |3.7 |2.1 |2.59 |
|Debt/Equity Ratio | | | | | |
| |2010 |2009 |2008 |2007 |2006 |
|Starbucks |0.15 |0.18 |0.22 |0.24 |0.0 |
|Industry

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