Write a paper analyzing the financial health of Starbucks Corp. Use techniques such as ratio analysis, time value of money formulas, capital budgeting and industry analysis.
Calculate financial ratios such as liquidity, asset management, leverage, profitability and market performance.
Use 8 ratios. Write an analysis for each ratio describing the company’s financial health and improvements or deficiencies from the prior year.
Calculate net present value, weighted average cost of capital and break-even point. Apply these financial techniques to a capital budgeting scenario.
Develop a numerical example and define the assumptions used and explain how my scenario can help the company increase profit. Identify the industry of your chosen company and research trends in the industry; identify the top two or three major competitors of your company and research their current financial ratios using a website.
Benchmark your calculated ratios to industry averages and a top competitor; explain how your company’s financial performance compares to the industry; identify opportunities and threats for your company in the context of the industry.
Lastly, discuss suggestions to management for improving the company’s future financial performance based upon the financial / industry analysis completed for this project and your own creative ideas; identify three key issues management should address and discuss long term growth strategies for your company.