Finance : Ratio Analysis

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Starbucks is a large multinational chain of coffee shops with corporate headquarters in Seattle, Washington. The company was in part named after Starbuck, a character in Moby Dick, and its insignia is a stylized cartoon siren. It is more popular among youth. Besides coffee it also serves other drinks, both hot and cold, and pastries. The company has 130,000 employees worldwide at 11,377 stores in 37 countries and plans to grow to 30,000 stores globally. It has about 80 corporate stores in Michigan. Starbucks is opening stores at a rate of five a day and saw its sales rise 20% last year to $6.4 billion. Profits rose nearly 8% to $494 million last year (2005)
(www.en.wikipedia.org)

According to the website of Star Bucks the mission of the organization

"Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles while we grow."
The following six guiding principles will help us measure the appropriateness of our decisions:

? Provide a great work environment and treat each other with respect and dignity.

? Embrace diversity as an essential component in the way we do business.

? Apply the highest standards of excellence to the purchasing, roasting and fresh delivery of our coffee.

? Develop enthusiastically satisfied customers all of the time.

? Contribute positively to our communities and our environment.

? Recognize that profitability is essential to our future success.
? Starbucks is committed to a role of environmental leadership in all facets of our business.

We fulfill this mission by a commitment to:

? Understanding of environmental issues and sharing information with our partners.

? Developing innovative and flexible solutions to bring about change.

? Striving to buy, sell and use environmentally friendly products.

? Recognizing that fiscal responsibility is essential to our environmental future.

? Instilling environmental responsibility as a corporate value.

? Measuring and monitoring our progress for each project.

? Encouraging all partners to share in our mission.

The company offers brewed coffees, espresso beverages, cold blended beverages, various complementary food items, premium teas, a line of compact discs, and coffee-related accessories and equipment, including drip and French press coffeemakers, espresso machines, and coffee grinders primarily through its retail stores. Starbucks also licenses its trademark for retail store operations, and grocery and warehouse club stores, as well as to produce and distribute its branded products. It also engages in producing and selling coffee drinks, espresso drink, and a line of ice creams (www.yahoo.com)

Ratio Analysis
The accounting data helps to know the performance of the organization. Accounting is the means by which information about an enterprise is communicated and, thus, is ...