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    Jesseric Romero
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    The document provides an analysis of various financial ratios for Starbucks, including profitability ratios like gross profit margin of 69.92% and operating profit margin of 16.76%. It also lists efficiency ratios such as asset turnover of 0.93x and inventory turnover of 5.45x. Finally, it examines financial health ratios like the debt to equity ratio of -2.56 and current ratio of 1.20.

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    The document provides an analysis of various financial ratios for Starbucks, including profitability ratios like gross profit margin of 69.92% and operating profit margin of 16.76%. It also lists efficiency ratios such as asset turnover of 0.93x and inventory turnover of 5.45x. Finally, it examines financial health ratios like the debt to equity ratio of -2.56 and current ratio of 1.20.

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    11 views1 page

    Ratio

    Uploaded by

    Jesseric Romero
    The document provides an analysis of various financial ratios for Starbucks, including profitability ratios like gross profit margin of 69.92% and operating profit margin of 16.76%. It also lists efficiency ratios such as asset turnover of 0.93x and inventory turnover of 5.45x. Finally, it examines financial health ratios like the debt to equity ratio of -2.56 and current ratio of 1.20.

    Copyright:

    © All Rights Reserved
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    of 1

    Starbucks Ratio Analysis

    Probability Ratio
    Gross profit margin = ($20.32 billion ÷ $29.06 billion) × 100 = 69.92%
    Operating profit margin = ($4.87 billion ÷ $29.06 billion) × 100 = 16.76%
    Net profit margin = ($4.2 billion ÷ $29.06 billion) × 100 = 14.45%
    Return on Assets = ($4.2 billion ÷ $30.384 billion) × 100 = 13.82%
    Return on Equity = ($4.2 billion ÷ $-8.45 billion) × 100 = - 49.70%

    Efficiency Ratio Measures


    Asset Turnover = (29.061 billion ÷ 31.393 billion) =0.93x
    Fixed Asset Turnover = ( 29.061 billion ÷ 1.578 billion ) = 18.42x
    Inventory Turnover = ( 8.739 billion ÷ 1.604 billion ) = 5.45x
    Days in inventory = ( 365 ÷ 13.10 ) = 27.86
    Accounts Receivable Turnover = ( 29.061 billion ÷ 940 million) = 30.92x
    Days in Accounts Receivable = ( 365 days ÷ 30.92 ) = 11.80

    Financial Health
    Debt to Equity Ratio = ( 13.617 billion ÷ -5.315 billion ) = -2.56
    Debt Ratio = ( 13.617 billion ÷ 31.393 billion ) = 43.38%
    Equity Ratio = ( 5.315 billion ÷ 31.393 billion ) = 16.93%
    Interest Coverage ratio = ( 4.872 billion ÷ 496.8 million ) = 9.81%
    Current Ratio = ( $9.756 billion ÷ 8.151 billion) = 1.20
    Quick Ratio = ( $5.62 billion ÷ 8.92 billion) = 0.63

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