Financial Analysis: Starbucks Corporation

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Financial Analysis Starbucks (Starbucks) is a publicly held company that sells gourmet coffees, as well as, a sandwich and desert menu. They operate in the United States, as well as, international countries. Starbucks has delicious coffees that are very popular with the public and has a growing popularity. By comparing Starbuck's financial information with the financial information of one of their biggest competitor's, Dunkin Donuts (Dunkin Donuts), it will show the actual competitive edge of Starbucks. According to Starbucks financial statements, (Starbucks Investor Relations) for the year 2011, net income was 1,245.7 (in thousands) and total assets were 7,350.4, which makes return on assets at 16.92%. With sales of 11,700.4 (in thousands), the profit margin calculates to 10.64%. Free cash flow was $230,420,000, cash from operations was $1381.98 (in thousands), capital expenditures were $531.9 and dividends were $850.08. Cash inflow came from cash from operations and short-term and long-term investments. Cash outflow was used for expenses from operations and paying off long-term debt. According to Dunkin Donuts financial statements, (2011 Annual Report) for the year 2011, net income was 34,442 (in thousands) and total assets were 3,224,018, making the return on assets 1.1%. Net sales were 628,198 (in thousands), making the profit margin 5.5%. Free cash flow was $162,471,000, with cash from operations $162,703 (in thousands), capital expenditures $232, and no
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