Starbucks Financial Analysis Paper

1988 Words8 Pages
As the first part of the financial analysis of Starbucks, we start off with the performance analysis of the company from 2006 to 2015. To serve that purpose we based our work on the analysis of the Income Statement, from which growth rates have been calculated so we only showcase relevant numbers such as sales, cost of goods and services and net profit.

Trend Analysis

Net Sales Growth
Firstly, Starbucks’ net sales growth from 2006 to 2015 shows us that the company has been working well on its attractiveness through time. Indeed, except in 2009, sales have been constantly increasing from one year to another at a rate of 11% in average. Over the period, two specific year are to be highlighted. 2007 and 2015 experienced respectively an increase of 21% and 17% much higher than the 11% in average. While 21% was the normal sales growth rate in 2007, Starbucks has experiencing an amazing year sales wise since the beginning of 2015. According to the last estimations, this sales increase seem to be due to outstanding performances on the tea market as well as a great progression in terms of traffic in Asia and in the US.
Cost of Goods and Services Growth
Then, when it comes to costs of goods and services, the Seattle-based company has always
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When considering an investment decision, the company should optimize its purchase in order to gain the most value. The objective usually is to find the right balance between the short and long term investments in order to be able at the same time to keep the right amount of cash to pay the bills & to have the capacity to invest for long-term growth. In addition, as the ROI is not guaranteed, the decision also concerns what investment to make. Investments can be financed by internal or external sources. External financing can be done by taking on the company’s debt (=contracting a loan) or by selling equity. (,

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