Green Mountain Coffee Roasters, Inc. and Starbucks Corporation reported the following information in 2010 (in U.S. millions):
Question:
Green Mountain Coffee Roasters, Inc. and Starbucks Corporation reported the following information in 2010 (in U.S. millions):
.png)
Industry averages were as follows: profit margin, 4.7%; return on assets, 8.0%; and asset turnover, 1.7 times.
Instructions
(a) For each company, calculate the profit margin, return on assets, and asset turnover ratios for 2010.
(b) Based on your calculations in part (a), comment on how effectively each company is using its assets to generate sales and produce profit.
(c) What, if anything, complicates your ability to compare the two companies in (b)?
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a in US millions b Based on profit margin we can see that Starbucks is more profitable than Green Mountain Both companies have profit margins that are ...View the full answer
Answered By
Charles mwangi
I am a postgraduate in chemistry (Industrial chemistry with management),with writing experience for more than 3 years.I have specialized in content development,questions,term papers and assignments.Majoring in chemistry,information science,management,human resource management,accounting,business law,marketing,psychology,excl expert ,education and engineering.I have tutored in other different platforms where my DNA includes three key aspects i.e,quality papers,timely and free from any academic malpractices.I frequently engage clients in each and every step to ensure quality service delivery.This is to ensure sustainability of the tutoring aspects as well as the credibility of the platform.
2+ Reviews
10+ Question Solved
Related Book For 
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118024492
5th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Question Posted:
