Running Head: STARBUCKS FINANCIAL ANALYSIS 1 Starbucks Financial Analysis Debora Quiles Grand Caynon University Professor BUS-485-0501 Strategic Management
STARBUCKS FINANCIAL ANALYSIS 2 Starbucks company financial analysis i. Liquidity ratios The liquidity ratios of the company significantly declined over the financial period 2018 to 2019. This is attributed to higher growth in the firm’s current liabilities relative to the rate of growth of its current assets. The current ratio declined from 2.2o recorded at the beginning of the financial period 2018 to 0.92 at the beginning of the financial year 2019. This indicates that Starbucks' ability to pay short term debts through maximizing current assets drastically reduced during this period. As of 2019, the current ratio was below one. This shows that the company had insufficient current assets that could successfully settle all current debts and payables. Also, the firm’s quick ratio declined from 1.95 in 2018 to 0.67 in 2019 indicating the firm’s declining ability to meet short term liabilities. This is due to the decline in cash and cash equivalents from
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- Spring '16
- Balance Sheet, Financial Ratio, Generally Accepted Accounting Principles