Free Cash Flow for Starbucks

613 Words Feb 3rd, 2018 2 Pages
Among its many competitors is McDonald's, especially since they created their McCafe concept. The homepage of the company is http://www.starbucks.com/. There are a number of sources of financial information about the company. The published annual reports are available online (http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsannual). These are not usually revised. For revised and/or restated financial statements, MSN Moneycentral is a reliable aggregator of such information, and also produces some of the key ratios. http://investing.money.msn.com/investments/key-ratios?symbol=SBUX
My interest in the company is that it is well-known and has had some ups and downs in the past few years that make it an interesting company to study. In addition, both the company and its major competitors are publicly traded, which makes doing a comparison easier than if I chose a company whose major competitor was a subsidiary or otherwise not publicly traded.
The return on assets for Starbucks is 17.7%, while the ROA for McDonalds is 17.0%.
"Competitive financial position" is not a known financial analysis concept. There is a competitive position and there is a financial position, but the conflation of these two is not known, and indeed a Google search of the term shows zero instances in which those three words are used in sequence.
The competitive position of Starbucks is fairly strong, but nowhere near…
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