How to explain the following recommandation regarding Starbucks. give specific examples Enhancing Liquidity: Starbucks needs to counter

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How to explain the following recommandation regarding Starbucks. give specific examples

Enhancing Liquidity: Starbucks needs to counter declining liquidity by boosting the current ratio. This could involve initiatives such as renegotiating payment terms with suppliers or actively reducing short-term liabilities.

Refining Inventory Management: Despite progress in inventory turnover, Starbucks should fine-tune its inventory practices further to sustain operational efficiency.

Strategic Cost Management and Pricing: To bolster profitability, Starbucks should persist in efficient cost management while exploring strategic pricing strategies to uphold or amplify operating profit margins.

Improving Return Metrics: Focusing on augmenting earnings is crucial for Starbucks to cover dividends and buybacks, rectifying the negative Return on Equity (ROE).

Stabilizing Cash Conversion Cycles: Efforts aimed at stabilizing cash conversion cycles are essential to avoid substantial cash outflows, ensuring healthier cash inflows for operational sustainability.

Proactive Financial Stability Measures: With predictions pointing towards a return to pre-pandemic Z-Score levels, Starbucks should proactively implement measures to fortify financial stability and mitigate potential bankruptcy risks.

Optimizing Accounts Receivable: Continual monitoring and management of accounts receivable turnover are necessary to guarantee prompt and consistent customer payments, bolstering financial health and liquidity.