Evaluate the company's performance in terms of: 1. Liquidity (10 points) 2. Profitability (10 points) 3....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Evaluate the company's performance in terms of: 1. Liquidity (10 points) 2. Profitability (10 points) 3. Long-term Solvency (10 points) 4. Adequacy of cash flows (10 points) 5. Market strength (10 points) Starbucks Corporation Consolidated Balance Sheets September 28, 2016, and September 30, 2015 (Dollar amounts in millions) Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net Inventories Prepaid and other current assets Deferred income taxes, net Total Current assets Long-term investments Property, plant and equipment, net Other assets Other intangible assets Goodwill Total assets 2016 $269.8 52.5 329.5 692.8 169.2 234.2 $1,748.0 374.0 2,956.4 261.1 Assets 66.6 2015 $281.3 157.4 287.9 691.7 148.8 129.4 279.9 2,890.4 219.4 Increase (Decrease) Amount Percentage 42.1 $(11.5) (4.1) (104.9) (66.6) 41.6 $1,696.5 $51.5 1.1 20.4 104.8 94.1 66.0 41.7 24.5 266.5 215.6 50.9 $5,672.6 $5,343.9 $328.7 14.4 0.2 13.7 81.0 3.0 33.6 2.3 19.0 58.2 23.6 6.2 Starbucks Corporation Consolidated Income Statements For the Years Ended September 28,2016, and September 30,2015 (Dollar amounts in millions except per share amounts) Net revenues Cost of sales, including occupancy costs 4,645.3 Gross margin Operating expenses Store operating expenses Other operating expenses Depreciation and amortization expenses General and administrative expense Restructuring charges Total operating expenses Operating income Other income.net interest expense Income before taxes Provision for income taxes Income before cumulative change, net of taxes Cumulative effect of accounting change, net of taxes Net income Per common share: Net income per common share before cumulative of change in accounting principle- basic Cumulative effect of accounting change, net of taxes Net income per common share - basic Net income per common share before cumulative effect of change in accounting principle-diluted Cumulative effect of accounting change, net of taxes Net income per common share- diluted Shares used in calculation of net income per common share-basic Shares used in calculation of net income per common share-diluted 2016 $10,383.00 $9.411.50 $971.50 3999.1 646.2 $5,737.30 $5412.4 325.3 $3745.1 $3,215.90 330.1 294.2 549.3 456 266.9 5347.4 $390.3 122.6 -53.4 $459.5 144 $315.5 $315.5 0.43 0.43 0.43 1 Increase (Decrease) 2015 Amount Percentage 0.43 731.5 741.7 467.2 489.2 - 4466.5 $945.90 148.4 -38 $1056.3 383.7 $672.6 0.9 $672.6 -357.1 0.9 0.87 -- 0.87 529.2 35.9 749.8 770.1 82.1 -33.2 266.9 880.9 555.6 -25.8 -15.4 -596.8 -239.7 -357.1 -0.47 - -0.47 -0.44 - -0.44 -183 -28.4 $10.30 16.2 6 16.5 12.2 17.6 -6.8 100 19.7 -58.7 -17.4 40.5 -56.5 -62.5 -53.1 0 -53.1 -52.2 0 -52.2 -50.6 0 -50.6 -2.4 -3.7 Liabilities and Shareholder's Equity Current liabilities: Commercial paper and short-term borrowings Accounts payable Accrued compensation and related costs Accrued occupancy costs Accrued taxes Insurance reserves Other accrued expenses Deferred revenue Current portion of long-term debt Total current liabilities Long-term debt and other liabilities Shareholder's equity Total liabilities and shareholder's equity $713.0 $710.3 324.9 253.6 136.1 76.1 152.5 164.4 368.4 0.7 $2,189.7 992.0 2,490.9 $5,672.6 390.8 292.4 74.6 92.5 137.0 160.3 296.9 0.8 $2,155.6 904.2 $2.7 0.4 (65.9) 2.284.1 (38.8) 61.5 (16.4) 15.5 4.1 71.5 (0.1) $34.1 87.8 (16.9) (13.3) 82.4 (17.7) 11.3 2.6 24.1 (12.5) 1.6 9.7 206.8 $5,343.9 $328.7 6.2 9.1 Related Ratios: Currentratio Quick ratio Receivable turnover Day's sales uncollected Inventory turnover Day's inventory on hand Payables turnover Day's payable Profit margin Asset turnover Return on assets Return on equity Debt to equity Interest coverage ratio Cash flow yield Cash flow to sales Cash flow to assets Free cash flow Price Earnings ratio 2016 0.8 times 0.3 times 33.6 times 10.9 days 6.7 times 54.5 days 13.0 times 28.1 days 3.0% 1.9 times 5.7% 13.2% 1.3 times 9.6 times 4.0 times 12.1% 22.9% $274.2 35.5 times 2015 0.8 times 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 13.8% 29.8% 1.3 times 28.8 times 2.0 times 14.1% 27.2% $250.9 30.1 times Evaluate the company's performance in terms of: 1. Liquidity (10 points) 2. Profitability (10 points) 3. Long-term Solvency (10 points) 4. Adequacy of cash flows (10 points) 5. Market strength (10 points) Starbucks Corporation Consolidated Balance Sheets September 28, 2016, and September 30, 2015 (Dollar amounts in millions) Current assets: Cash and cash equivalents Short-term investments Accounts receivable, net Inventories Prepaid and other current assets Deferred income taxes, net Total Current assets Long-term investments Property, plant and equipment, net Other assets Other intangible assets Goodwill Total assets 2016 $269.8 52.5 329.5 692.8 169.2 234.2 $1,748.0 374.0 2,956.4 261.1 Assets 66.6 2015 $281.3 157.4 287.9 691.7 148.8 129.4 279.9 2,890.4 219.4 Increase (Decrease) Amount Percentage 42.1 $(11.5) (4.1) (104.9) (66.6) 41.6 $1,696.5 $51.5 1.1 20.4 104.8 94.1 66.0 41.7 24.5 266.5 215.6 50.9 $5,672.6 $5,343.9 $328.7 14.4 0.2 13.7 81.0 3.0 33.6 2.3 19.0 58.2 23.6 6.2 Starbucks Corporation Consolidated Income Statements For the Years Ended September 28,2016, and September 30,2015 (Dollar amounts in millions except per share amounts) Net revenues Cost of sales, including occupancy costs 4,645.3 Gross margin Operating expenses Store operating expenses Other operating expenses Depreciation and amortization expenses General and administrative expense Restructuring charges Total operating expenses Operating income Other income.net interest expense Income before taxes Provision for income taxes Income before cumulative change, net of taxes Cumulative effect of accounting change, net of taxes Net income Per common share: Net income per common share before cumulative of change in accounting principle- basic Cumulative effect of accounting change, net of taxes Net income per common share - basic Net income per common share before cumulative effect of change in accounting principle-diluted Cumulative effect of accounting change, net of taxes Net income per common share- diluted Shares used in calculation of net income per common share-basic Shares used in calculation of net income per common share-diluted 2016 $10,383.00 $9.411.50 $971.50 3999.1 646.2 $5,737.30 $5412.4 325.3 $3745.1 $3,215.90 330.1 294.2 549.3 456 266.9 5347.4 $390.3 122.6 -53.4 $459.5 144 $315.5 $315.5 0.43 0.43 0.43 1 Increase (Decrease) 2015 Amount Percentage 0.43 731.5 741.7 467.2 489.2 - 4466.5 $945.90 148.4 -38 $1056.3 383.7 $672.6 0.9 $672.6 -357.1 0.9 0.87 -- 0.87 529.2 35.9 749.8 770.1 82.1 -33.2 266.9 880.9 555.6 -25.8 -15.4 -596.8 -239.7 -357.1 -0.47 - -0.47 -0.44 - -0.44 -183 -28.4 $10.30 16.2 6 16.5 12.2 17.6 -6.8 100 19.7 -58.7 -17.4 40.5 -56.5 -62.5 -53.1 0 -53.1 -52.2 0 -52.2 -50.6 0 -50.6 -2.4 -3.7 Liabilities and Shareholder's Equity Current liabilities: Commercial paper and short-term borrowings Accounts payable Accrued compensation and related costs Accrued occupancy costs Accrued taxes Insurance reserves Other accrued expenses Deferred revenue Current portion of long-term debt Total current liabilities Long-term debt and other liabilities Shareholder's equity Total liabilities and shareholder's equity $713.0 $710.3 324.9 253.6 136.1 76.1 152.5 164.4 368.4 0.7 $2,189.7 992.0 2,490.9 $5,672.6 390.8 292.4 74.6 92.5 137.0 160.3 296.9 0.8 $2,155.6 904.2 $2.7 0.4 (65.9) 2.284.1 (38.8) 61.5 (16.4) 15.5 4.1 71.5 (0.1) $34.1 87.8 (16.9) (13.3) 82.4 (17.7) 11.3 2.6 24.1 (12.5) 1.6 9.7 206.8 $5,343.9 $328.7 6.2 9.1 Related Ratios: Currentratio Quick ratio Receivable turnover Day's sales uncollected Inventory turnover Day's inventory on hand Payables turnover Day's payable Profit margin Asset turnover Return on assets Return on equity Debt to equity Interest coverage ratio Cash flow yield Cash flow to sales Cash flow to assets Free cash flow Price Earnings ratio 2016 0.8 times 0.3 times 33.6 times 10.9 days 6.7 times 54.5 days 13.0 times 28.1 days 3.0% 1.9 times 5.7% 13.2% 1.3 times 9.6 times 4.0 times 12.1% 22.9% $274.2 35.5 times 2015 0.8 times 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 13.8% 29.8% 1.3 times 28.8 times 2.0 times 14.1% 27.2% $250.9 30.1 times
Expert Answer:
Answer rating: 100% (QA)
Current ratlo and Quick ratlo are measure of short term liquidity Current ratio measures the companys ability to pay off its llabilities due In 1 year with its current assets Similarly the quick ratlo measures a companys ability to meet its shortterm llabilities with its liquid assets Higher the value of current and quick ratlo higher will be the liquidity of the company ... View the full answer
Related Book For
Managerial Accounting
ISBN: 978-1133940593
10th edition
Authors: Susan V. Crosson, Belverd E. Needles
Posted Date:
Students also viewed these finance questions
-
The 2016 and 2015 comparative balance sheets and 2016 income statement of King Supply Corp. follow: King Supply had no noncash investing and financing transactions during 2016. During the year, there...
-
The 2016 and 2015 comparative balance sheets and 2016 income statement of Lombardi Supply Corp. follow: Lombardi Supply had no noncash investing and financing transactions during 2016. During the...
-
Evaluate these quantities? a) 13 mod 3 b) 97 mod 11 c) 155 mod 19 d) 221 mod 23
-
The following are selected transactions of Bridgeport Department Store Ltd. for the current year ended December 31. Bridgeport is a private company operating in the province of Manitoba where PST is...
-
What penalties can be imposed on PAs by their provincial accounting body in their self-regulation of ethical code violators?
-
For each of the following pairs of regular languages, find a regular expression and an FA that each define L 1 L 2 : L 1 L 2 (i) Even-length strings Strings with an even number of a's (ii)...
-
For each of the following situations, calculate the \(z\)-statistic \((z)\), make a decision about the null hypothesis (reject, do not reject), and indicate the level of significance \((p>.05, p
-
On December 31, 2010, Hawthorne Corporation issued for $155,989, five-year bonds with a face amount of $150,000 and a stated (or coupon) rate of 9 percent. The bonds pay interest annually and have an...
-
Sasha manages inventory at a park visitor center. They're in charge of ordering supplies, but they realize that the stock-out room and the storage units the company rents are running out of space,...
-
1. Case Exhibit 2 presents monthly data of units produced and sold, and actual costs incurred, for 24 months. B Create a scatterplot of costs and units. b. From your scatterplot, estimate the...
-
Nine hospitals are located within a city at coordinate points P1 (10, 20), P2 (14,12), P3(8, 4) , P4 (32, 6), P5 (9,16), P6 (20,30), P7 (15,5), P8 (5,10), P9 (30,7) . The hospitals are served by a...
-
JDBC applications are made of two models: two-tier and three-tier model. (True/False)
-
Explain the relationship between three Statement objects, and illustrate why and how the CallableStatement object can use the setXXX() methods defined in the PreparedStatement interface.
-
Each distinct feature in a NetBeans Platform application can be provided by a distinct NetBeans module, which is comparable to a plugin. (True/False)
-
To load and register a driver, creating a new instance of the Driver class method is better than using the Class.forName() method. (True/False)
-
To create a ____________ object, one needs to call the ___________ method defined in the Connection interface. a. ResultSet, getMetaData() b. Statement, getStatement() c. PreparedStatement,...
-
Consider the table below and answer the questions that follow: Atomic Radius Crystal Structure (nm) 0.1246 0.071 Element Ni H Ag Cr Co FCC 0.1445 0.1249 0.1253 ------ Electronegativity Valence 1.8...
-
In Problem 8.43, determine the smallest value of for which the rod will not fall out of the pipe. IA -3 in.-
-
Describe how a cost hierarchy and a bill of activities can improve the relevance and reliability of an ABC implementation.
-
Refer to the 2011 annual reports for CVS Corporation and Southwest Airlines Co., which you can find using either the "Investor Relations" portion of each company's website (do a web search for CVS...
-
Bulls Eye, Ltd., is an international merchandising company that retails medium-priced goods. Its retail outlets are located throughout the United States, France, Germany, and Great Britain....
-
If the displacement of an object is 300 m north, what can you say about the distance traveled by the object?
-
Speed is the magnitude of velocity. Is average speed the magnitude of average velocity? Explain.
-
The average velocity of a jogger on a straight track is computed to be +5 km/h. Is it possible for the joggers instantaneous velocity to be negative at any time during the jog? Explain.
West Federal Taxation 2008 Taxation Of Business Entities 11th Edition - ISBN: 0324366655 - Free Book
Study smarter with the SolutionInn App