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    Starbucks financial health: use of each ratio

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    Please help with the following problem.

    Discuss the trend for each ratio and what it tells you about the organization's financial health.

    Use Starbucks Corporation Fiscal 2009 & 2010 Annual Report.

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    Solution Preview

    See attached file.

    Starbucks Corporation (Starbucks) is the roaster and retailer of specialty coffee in the world, operating in more than 50 countries.

    I will discuss important ratios such as fixed asset turnover ratio, Debt ratio, Debt to Net worth ratio, Current ratio, quick ratio, Net Profit ratio, inventory turnover ratio, return on equity ratios etc.

    Year 2010 Year 2009 Industry average

    a) Current ratio 1.55 1.29
    b) Quick ratio 1.24 0.87
    c) Inventory turnover 8.21 6.50 16.5
    d) Days' sales outstanding ...

    Solution Summary

    This solution discusses the financial health of Starbucks. It discusses the trend of various ratios and tells you about the organization's financial health. The explanation is given in 369 words.