Final Essay - Adam Crawford Final Essay Professor Alexander ACC111 Crawford 1 GREEN MOUNTAIN COFFEE ROASTERS INC(GMCR FINANCIAL ANALYSIS AND

Final Essay - Adam Crawford Final Essay Professor Alexander...

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Adam Crawford ACC111 Crawford 1 Final Essay Professor Alexander GREEN MOUNTAIN COFFEE ROASTERS INC.(GMCR) FINANCIAL ANALYSIS AND INTERPRETATION Determine the working capital and current ratios for 2009, 2010, and 2011 for the Green Mountain Coffee Roasters Inc. based on the information contained in the consolidated balance sheets in Appendix A. Did Green Mountain’s working capital and current ratio increase or decrease from 2009 to 2011? (The 2009 data was taken from ) The Green Mountain Coffee Roasters Inc. is a strong corporation that has more than enough assets to cover its liabilities. In 2009 they had approximately 537.8M in current assets, 124.05M in current liabilities, 413.75M working capital, and a current ratio of 4.34 ("Strong Balance Sheet"). In 2010 they experienced a rough year where their current assets declined to 495.27M, current liabilities increased to 238.06M, working capital decreased to 257.21M, and their current ratio declined to less than half at 2.08. They were able to set new records in 2011 with total current assets increasing to 1,131.53M, increasing current liabilities to 471.37M, almost tripling the amount of working capital at 660.15M, and increasing their current ratio to
Adam Crawford ACC111 Crawford 2 Final Essay Professor Alexander 2.40. Their working capital increased in from 413.75M in 2009 to 660.15M in 2011 (a gain of 246.40M) while the current ration decreased from 4.34 in 2009 to 2.40 in 2011 (a loss of 1.93).

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