Financial Analysis Starbucks Corp. Fin 540 - 2307 Words

Running head: FINANCIAL RATIO ANALYSIS STARBUCKS CORP. Financial Ratio Analysis Starbucks Corporation University of Phoenix FIN/540 Managerial Accounting and Finance Foundations September 19, 2011 Financial Ratio Analysis Starbucks Corporation Starbucks Corporation is the global leader in coffee and has a strong entrepreneurial history of product development and branding. Ranked as both a Fortune 500 and Fortune 1000 Best Company to Work For Starbucks employs 116,357 team members in the United States (Fortune, 2010). Starbucks (SBUX) Corporation according to Plunkett Research, Ltd. ranks in their industry group as number one in sales and profits. National and internationally Starbucks Corporation own 16,858 stores†¦show more content†¦2010 total debt ratio of 0.15 or 15% measures the corporation’s percentage finance with debt. Reviewing the three selected leverage ratios provides a positive outlook for the financial stability of Starbucks. With increased profitability and low financial leverage shareholders long-term returns remain profitable. Figure 1 Financial Leverage Trend |Times Interest | | | | | | |Earned % |2010 |2009 |2008 |2007 |2006 | |Starbucks |12.04 |4.47 |3.33 |10.08 |10.43 | |Industry |6.04 |4.51 |3.7 |2.1 |2.59 | |Debt/Equity Ratio | | | | | | | |2010 |2009 |2008 |2007 |2006 | |Starbucks |0.15 |0.18 |0.22 |0.24 |0.0 | |Industry