This note introduces interpretation and computation of basic financial analysis, including financial ratios and common size income statements. It emphasizes linkages between operating strategy and financial outcome. Starbucks' world-wide footings and well reputed business model make it especially aiding vehicle for substantiating interpretation of fiscal evaluation.
Along with profitability ratios, asset management ratios, and financial leverage ratios, DuPont analysis of return on equity (ROE) is introduced to exemplify how profitability, asset utilization, and financial leverage come together to quantify the ability to produce return to the shareholders.
This case note does not draw assured conclusions related to whether Starbucks is proficiently managed, but it exemplifies how Starbucks' managing strategy is revealed in its fiscal results. It shows that fiscal results tell an intuitive story about a firm's business model and managing strategy. This note assumes a working knowledge of income statements and balance sheets. Its intended audience is nonfinancial managers in an executive program wanting to understand how their operating choices influence corporate-level financial operation. It also is useful for MBA students in core finance or accounting course.
Starbucks Corporation Financial Analysis of a Business Strategy a case study solution
PUBLICATION DATE: July 01, 2013 PRODUCT #: BAB036-PDF-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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