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clauderdale
Rating (1): C-
Questions Asked: 2
Tutorials Posted: 13, earned $42.00

 

$30.00 Starbuck's: Evaluating an Annual Report

• From Business: Finance
• Closed, but you can still post tutorials
• Due on Aug. 23, 2008
• Asked on Aug. 20, 2008 at 11:14:53AM

Q:

Prepare a 1,750- to 2,100-word paper, formatted according to APA guidelines, that
includes performance ratios based on the company's last two annual reports and data
available on the company's Web site.
o Compute the eight ratios listed below for two consecutive years. Discuss their
significance for management and compare them to industry averages.
• Current Ratio
• Quick Ratio
• Inventory Turnover Ratio (Note: on the Dunn and Bradstreet Web site this ratio is labeled Sales to Inventory)
Debt Ratio (Note: on the Dunn and Bradstreet Web site this ratio is labeled Total
Liabilities to Net Worth)
• Net Profit Margin Ratio (Note: on the Dunn and Bradstreet Web site this ratio is
labeled Return on Sales)
• ROI (Note: on the Dunn and Bradstreet Web site this ratio is labeled Return on
Assets)
• ROE (Note: on the Dunn and Bradstreet Web site this ratio is labeled Return on
Net)
• Price-to-Earnings Ratio (P/E) Ratio
o Analyze the company's working capital management. Explain why the company’s
operating and cash cycles are currently optimized. If you think they are not optimized,
explain why.
o Based on the company’s financial statements, list the long-term debt held by the
corporation, maturity dates and yield to maturity. List the types of stock issued by the
company, the stocks’ current selling price, and the 52-week average selling price.
o Compute the weighted average cost of capital (WACC) for both years and discuss
your findings.
o Write a brief analysis that summarizes the data you’ve gathered throughout the
weeks and evaluates how your company compares to industry averages.
o Write your recommendations on whether as an investor you should buy this
company's stock and why.

 

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