Starbucks

1. Accounting & FinancialCourse project
Lu Han

2.  Background of Starbucks
 Financial Statement
 Analysis
 Liquidity
 Gearing
 Profitability
 Financial
 Investment
 Conclusion
 Sources

3.  1971 Founded
 1987 Purchased by Mr. Howard Schultz
 1992 Successful listed
 2006 130000 coffee shops

7.  Acid-Test Ratio = (Current Assets – Inventory) / Current
Liabilities
 Current Ratio = Current Assets / Current Liabilities
2012 2013
Acid-Test
Ratio
1.3 0.8
Current Ratio 1.9 1.3

8.  Debt-Equity Ratio= Debt Capital/ Equity
Capital
2012 2013
Debt-Equity
Ratio
0,59 1.6

9. Gross Profit Margin = Gross profit / turnover
2012 2013
Gross Profit
Margin
41% 22%

10.  Stock turnover = Cost of goods sold / stock
expressed as times per year
 Debtor Days = Debtors / sales turnover x 365
2012 2013
Debtor Days 32 68

11.  Earnings Per Share= Profit afterTax/ Number
of Share

 Price Earnings Ratio= Market Price / Earning
Per Share

 DividendYield =Annual Dividend / Current
Stock Price

12.  Compare 2013 to 2012
 Total assets : Increase 3297.5 million dollars
 AcidTest Ratio and Current Liabilities were
better
 Debt-Equity Ratio was worth
 Financial problem more and more serious
 Gross Profit Margin was decreased

13.  Moore J.Tribal Knowledge: BusinessWisdom Brewed from the
Grounds of Starbucks Corporate Culture[M]. Kaplan Publishing,
2006.

 Dambolena I G, Khoury S J. Ratio stability and corporate failure[J].
The Journal of Finance, 1980, 35(4): 1017-1026.

 Financial Statement 1 : Income Statement of Starbucks at the year
2012-2013.: Starbucks Annual Report, 2013

 Financial Statement 2 : Balance sheet of Starbucks at the year
2012-2013
 Starbucks Annual Report, 2013

 Financial Statement 3 : Cash Flows of Starbucks at the year 2012-
2013
 Starbucks Annual Report, 2013
