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Financial Statement Analysis: Starbucks Corporation & Caribou Coffee Co. Inc.

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Primary: Starbucks Corporation (SBUX)
Year End: September

Competitor: Caribou Coffee Co. Inc. (CBOU)
Year End: December

1. Calculate the following ratios needed to assess liquidity and interpret the results. This should include the last 3 years of ratios for the company and the last 3 years of ratios for the competitor. What trends are there?

a. Current Ratio

b. Acid-Test (Quick) Ratio

c. Receivables Turnover

d. Inventory Turnover

e. Asset Turnover

2. Calculate the following ratios needed to assess long-term debt-paying ability and interpret the results. This should include the last 3 years of ratios for the company and the last 3 years of ratios for the competitor. What trends are there?

a. Times Interest Earned

b. Debt to Total Assets Ratio

c. Book Value per Share

3. Calculate the following ratios needed to assess profitability and interpret the results. This should include the last 3 years of ratios for the company and the last 3 years of ratios for the competitor. What trends are there?

a. Profit Margin on Sales

b. Rate of Return on Assets

c. Rate of Return on Common Stock Equity

d. Earnings per Share

e. Payout Ratio

4. Which company would you invest in? What are the reasons for your decisions? This should be based on financial analysis and significant facts.

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The expert examines financial statement analysis for Starbucks Corporations and Caribou Co.

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