Starbucks Corporation Marketing Mix by qingyunliuliu

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									        Starbucks Corporation
        Financial Performance




“To inspire and nurture the human spirit— one person, one cup, and one
                        neighborhood at a time”


       Prepared By: Mesfin Isaac, Joseph Sorrentino, Nelson Guerrero, and Chris Ciabattone
             “We Pledge our Honor that we have abided by the Stevens Honor System”
                      Income Statements
-All $ amounts in millions
-Fiscal Year ends September 30

                      2009        2008     2007             2006              2005
  Revenue            $9,774      $10,383   $9,411          $7,786            $6,369
  Cost of            $7,750      $8,390    $7,215          $5,866            $4,771
  Revenue
Gross Profit         $2,024      $1,992    $2,196          $1,920            $1,598
 Operating            $562        $503     $1053            $893              $780
  Income
     Net              $390        $315     $672             $564              $494
   Income

-Starbucks Corporation has seen its net
income hit some lows over the past 5
years due to the weak economy
however they remain an overall strong
corporation with $390 million dollars in
net income in 2009.
                                                    Starbucks Corporation Financials
-All $ amounts in millions
                                   Balance Sheets
-Fiscal Year ends September 30
                    2009          2008    2007     2006          2005
     Cash           $666          $322    $438     $453          $307
    Net             $271          $329    $287     $224          $190        -Starbucks Corporation
 Receivables
                                                                             has had increasing
  Inventory         $664          $692    $691     $636          $546        retained earnings and
    Plant,         $2,536        $2,956   $2,890   $2,287       $1,842       increasing assets over
  Property &                                                                 the past 5 years which
  Equipment                                                                  are evidence of a strong
 Total Assets      $5,576        $5,672   $5,343   $4,428       $3,513       company financially.
                  2009           2008     2007     2006          2005
                                                                             -Starbucks Corporation
 Accounts         $267           $324     $390     $340          $220        closed 600 stores
 Payable                                                                     recently which is the
Long-Term         $549           $549     $550     $1.96        $2.87        reason for the recently
  Debt                                                                       decreasing Property,
   Total         $2,531          $3,181   $3,059   $2,200       $1,423       Plant, & Equipment.
 Liabilities
  Retained       $2,793          $2,402   $2,189   $2,151       $1,938
  Earnings
Liabilities +    $5,576          $5,672   $5,343   $4,428       $3,513
  Equity
                                                            Starbucks Corporation Financials
                            Profitability
                             2009                   2008               Analysis
 Gross Profit                55%                    19%            They have been able
                                                                   to dramatically bring
   Margin                                                          down their cost of
                                                                   goods sold in one
                                                                   year.

   Net Profit                 4%                    3%             They are able to turn
                                                                   a good profit after all
    Margin                                                         expenses have been
                                                                   considered.

   Return on                  7%                    5%             Assets are producing
                                                                   solid returns.
    Assets
   Return on                 12%                    12%            Stockholders Equity
                                                                   is producing solid
    Equity                                                         and consistent
                                                                   returns.


-After careful evaluation of Starbucks Corporation profitability
numbers, we believe that the company’s performance related to
profitability is Good.
Scale is Excellent-Good-Average-Poor-Unacceptable



                                                      Starbucks Corporation Financials
                                       Liquidity
                             2009                   2008            Analysis

Current Ratio                 1.2                   .79         They have done a
                                                                good job at paying
                                                                their short-term debt.

 Quick Ratio                  .86                   .48         They have done a
                                                                good job at being a
                                                                relatively liquid
                                                                corporation.


-Starbucks Corporation has the ability to pay off its short-term
bills and debts rather quickly and they have been able to remain
a relatively liquid company. We rate the corporation’s
performance as related to liquidity as Average.
Scale is Excellent-Good-Average-Poor-Unacceptable




                                                           Starbucks Corporation Financials
                      Asset Management
                             2009                   2008            Analysis
    Asset                     1.8                   1.8         They have the ability
                                                                to utilize their assets
   Turnover                                                     in an efficient
                                                                manner.

   Inventory                  6.5                   12.1        They have decreasing
                                                                numbers here
   Turnover                                                     because of the
                                                                economic downturn.
                                                                Overall, they are
                                                                strong at turning over
                                                                inventory.



-Starbucks Corporation has hit hard times along with many other
corporations during a tough economic time. They have had
trouble turning over their inventory as they have in the past.
However, they remain a strong company and we rate their asset
management performance at Average.
Scale is Excellent-Good-Average-Poor-Unacceptable



                                                           Starbucks Corporation Financials
                       Debt Management
                             2009                   2008             Analysis
     Debt to                  0.83                  1.28         They do a good job at
                                                                 converting their debt
     Equity                                                      into equity and
                                                                 creating capital for
                                                                 themselves.

Debt to Assets              45.3%                   56.1%        About half of the
                                                                 assets are financed
                                                                 through debt for
                                                                 Starbucks.

Times Earned                  14.8                   9.4         They can cover their
                                                                 debt obligations
Interest Ratio                                                   quickly and
                                                                 efficiently.

-Starbucks corporation has done an efficient and
consistent job at managing its debt. We rate their
performance related to debt management at
Excellent.
Scale is Excellent-Good-Average-Poor-Unacceptable




                                                            Starbucks Corporation Financials
IN ALL
 Even through these tough times Star
  Bucks remained profitable racking in 390
  million in net income
 Also Star bucks has done very well
  managing their debt through these tough
  times by having excellent turnover ratios
 Starbucks has as well remained liquid do
  to its current and quick ratios


                         Starbucks Corporation Financials
Final Thought
 This economy has made it difficult on
  various companies
 Even in this hard economy Star Bucks has
  been able to diversify and create positive
  numbers while still innovating and
  bettering their company overall




                         Starbucks Corporation Financials
   Works Cited
 www.starbucks.com
www.yahoo.com/finance
  www.hoovers.com
www.moneycentral.com




              Starbucks Corporation Financials

								
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