Starbucks is today the world’s leading roaster and retailer of specialty coffee. The company purchases and roasts whole coffee beans and sells them, along with a variety of freshly brewed coffees and other beverages, food items, and coffee-related merchandise, in its retail shops. It also produces and sells bottled coffee drinks, a line of premium ice creams, and most recently, instant coffee products. Starbucks is one of the most recognized and respected brands in the world. Required: Evaluate the company’s performance in terms of Long-term Solvency.
Starbucks is today the world’s leading roaster and retailer of specialty coffee. The company purchases and roasts whole coffee beans and sells them, along with a variety of freshly brewed coffees and other beverages, food items, and coffee-related merchandise, in its retail shops. It also produces and sells bottled coffee drinks, a line of premium ice creams, and most recently, instant coffee products. Starbucks is one of the most recognized and respected brands in the world. Required: Evaluate the company’s performance in terms of Long-term Solvency.
Chapter4A: Nopat Breakeven: Revenues Needed To Cover Total Operating Costs
Section: Chapter Questions
Problem 2EP
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Starbucks is today the world’s leading roaster and retailer of specialty coffee. The company purchases and roasts whole coffee beans and sells them, along with a variety of freshly brewed coffees and other beverages, food items, and coffee-related merchandise, in its retail shops. It also produces and sells bottled coffee drinks, a line of premium ice creams, and most recently, instant coffee products. Starbucks is one of the most recognized and respected brands in the world.
Required:
Evaluate the company’s performance in terms of Long-term Solvency.
Transcribed Image Text:2016
0.8 times
0.3 times
33.6 times
10.9 days
6.7 times
54.5 days
13.0 times
28.1 ooys
3.0%
1.9times
5.7%
13.2%
1.3times
9.6times
4.0times
12.1%
2015
0.8times
0.3 times
36.7 times
9.9 days
6.0 times
60.8 days
11.1 times
32.9 days
7.1%
1.9 times
Related Ratios:
Curentratio
Quick ratio
Receivable turnover
Day'ssales uncolected
Inventory tumover
Day'sinventory on hand
Payablesturnover
Day'spayable
Profit margin
Asset turnover
Return on assets
Return on equity
Debtto equity
Interest coverage ratio
Cash flow yield
Cash flow to sales
Cash flow to assets
Free cash flow
Price Earnings ratio
13.8%
29.8%
1.3times
28.8times
2.0 times
14.1%
27.2%
$250.9
30.1 times
చర చెలె
$274.2
35.5times
Required:
Transcribed Image Text:Starbucks Corporation
Consolidated Balance Sheets
September 28, 2016, and September 30, 2015
Increase (Decrease)
Amount
(Dollar amounts in millions)
2016
2015
Percentage
Assets
Current assets:
Cash and cash equivalents
$269.8
$281.3
$(11.5)
(4.1)
Short-term investments
52.5
157.4
(104.9)
(66.6)
Accounts receivable, net
329.5
287.9
41.6
14.4
Inventories
692.8
691.7
1.1
0.2
Prepaid and other current assets
169.2
148.8
20.4
13.7
Deferred income taxes, net
234.2
129.4
I04.8
81.0
Total Current assets
$1.748.0
$1.696.5
$51.5
3.0
Long-term investments
374.0
279.9
94.1
33.6
Property, plant and equipment, net
2,956.4
2,890.4
66.0
2.3
Other assets
261.1
219.4
41.7
19.0
Other intangible assets
66.6
42.1
24.5
58.2
Goodwill
266.5
$5,672.6
215.6
50.9
23.6
Total assets
$5,343.9
$328.7
6.2
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