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 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:

1. Liquidity

2. Profitability

3. Long-term Solvency

  

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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 66.6 2015 Assets $281.3 157.4 287.9 691.7 148.8 129.4 279.9 2,890.4 219.4 42.1 Increase (Decrease) Amount Percentage 266.5 215.6 $5.672.6 $5,343.9 $/11.5) (104.9) (66.6) $1,696.5 $51.5 41.6 1.1 20.4 104.8 94.1 66.0 41.7 24.5 50.9 $328.7 (4.1) 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 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 66.6 2015 Assets $281.3 157.4 287.9 691.7 148.8 129.4 279.9 2,890.4 219.4 42.1 Increase (Decrease) Amount Percentage 266.5 215.6 $5.672.6 $5,343.9 $/11.5) (104.9) (66.6) $1,696.5 $51.5 41.6 1.1 20.4 104.8 94.1 66.0 41.7 24.5 50.9 $328.7 (4.1) 14.4 0.2 13.7 81.0 3.0 33.6 2.3 19.0 58.2 23.6 6.2

Answer rating: 100% (QA)

Answer 1 to I Current rutio and quick actio are mesure of short term liquidity current ratio measure... View the full answer