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ASSIGNMENT
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Focus of the Final Paper

Write a five-to seven-page financial statement analysis of a public company, formatted according to APA style .In this analysis you will discuss the financial health of this company with the ultimate goal of making a recommendation to other investors. Your paper should consist of the following sections: introduction, company overview, horizontal analysis, ratio analysis, final recommendation, and conclusions.

Here is a breakdown of the sections within the body of the assignment:

Company Overview
Provide a brief overview of your company (one to two paragraphs at most). What industry is it in? What are its main products or services? Who are its competitors?

Horizontal Analysis of Income Statement and Balance Sheet
Prepare a three-year horizontal analysis of the income statement and balance sheet of your selected company. Discuss the importance and meaning of horizontal analysis. Discuss both the positive and negative trends presented in your company.

Ratio Analysis
Calculate the current ratio, quick ratio, cash to current liabilities ratio, over a two-year period. Discuss and interpret the ratios that you calculated. Discuss potential liquidity issues based on your calculations of the current and quick ratios. Are there any factors that could be erroneously influencing the results of the ratios? Discuss liquidity issues of competitive companies within the same industry.

Recommendation
Based on your analysis would you recommend an individual invest in this company? What strengths do you see? What risks do you see? It is perfectly acceptable to state that you would recommend avoiding this company as long as you provide support for your position.

 

 

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Company Analysis xxxxxxx Starbucks

Company Overview:

Starbucks xxxxxxx a publicly xxxxxxx xxxxxxx based xxxxxxx Seattle, Washington. xxxxxxx is the xxxxxxx beverage xxxxxxx xxxxxxx with almost xxxxxxx stores in xxxxxxx countries serving xxxxxxx and cold xxxxxxx coffee beans, xxxxxxx and sandwiches, xxxxxxx xxxxxxx snacks xxxxxxx crockery’s like xxxxxxx and tumblers.

Starbucks xxxxxxx is xxxxxxx xxxxxxx and nurture xxxxxxx human spirit xxxxxxx one person, xxxxxxx cup and xxxxxxx neighborhood at xxxxxxx time. Their xxxxxxx xxxxxxx to xxxxxxx coffee under xxxxxxx highest standards xxxxxxx quality xxxxxxx xxxxxxx sourcing practices. xxxxxxx company aims xxxxxxx building a xxxxxxx enduring company xxxxxxx strikes a xxxxxxx between profitability xxxxxxx xxxxxxx conscience. xxxxxxx works significantly xxxxxxx reduce environmental xxxxxxx through xxxxxxx xxxxxxx water conservation xxxxxxx recycling processes.

The xxxxxxx in which xxxxxxx operates is xxxxxxx of specialist xxxxxxx with competitors xxxxxxx xxxxxxx Dunkin xxxxxxx group; McDonalds xxxxxxx and Nestle. xxxxxxx keeps xxxxxxx xxxxxxx going is xxxxxxx three reasons:

  • The interiors xxxxxxx xxxxxxx whether xxxxxxx are at xxxxxxx or at xxxxxxx angeles. xxxxxxx xxxxxxx are similar. xxxxxxx a minimum xxxxxxx $2.00 and xxxxxxx of $20.00 xxxxxxx the drink xxxxxxx store offers xxxxxxx xxxxxxx almost xxxxxxx is densely xxxxxxx over the xxxxxxx with xxxxxxx xxxxxxx all over xxxxxxx compared to xxxxxxx competitors.

Horizontal analysis xxxxxxx to a xxxxxxx wherein an xxxxxxx compares line xxxxxxx xxxxxxx ratios xxxxxxx a company’s xxxxxxx statement over xxxxxxx certain xxxxxxx xxxxxxx time. It xxxxxxx the company xxxxxxx its stakeholders xxxxxxx analyze its xxxxxxx and detect xxxxxxx areas of xxxxxxx xxxxxxx analysis xxxxxxx the fact xxxxxxx simply so xxxxxxx to xxxxxxx xxxxxxx comparisons.  This xxxxxxx turn helps xxxxxxx detecting problem xxxxxxx and finding xxxxxxx for the xxxxxxx border="0" cellpadding="0" xxxxxxx xxxxxxx width="580">  

The xxxxxxx providing horizontal xxxxxxx is as xxxxxxx border="1" xxxxxxx xxxxxxx style="width:187px;">

Particulars

Percentage xxxxxxx 2012

Percentage xxxxxxx 2011

Revenue

9.27%

Operating xxxxxxx style="width:144px;">

15.55%

21.77%

13.41%

25.49%

11.08%

Current assets

37.67%

Current xxxxxxx style="width:144px;">

6.45%

Current xxxxxxx xxxxxxx style="width:205px;">

1.83

1.1

Cash to xxxxxxx liabilities

Over 2011 xxxxxxx current ratio xxxxxxx increased in xxxxxxx implying a xxxxxxx liquidity position xxxxxxx xxxxxxx to xxxxxxx previous year. xxxxxxx the quick xxxxxxx has xxxxxxx xxxxxxx the period. xxxxxxx the cash xxxxxxx liquidity position xxxxxxx the firm xxxxxxx to improve. xxxxxxx the cash xxxxxxx xxxxxxx liabilities xxxxxxx decreased in xxxxxxx said period. xxxxxxx is xxxxxxx xxxxxxx favourable position xxxxxxx because this xxxxxxx mean that xxxxxxx immediate cash xxxxxxx in contrast xxxxxxx the previous xxxxxxx xxxxxxx declined. xxxxxxx the overall xxxxxxx indexes reflect xxxxxxx it xxxxxxx xxxxxxx that the xxxxxxx shall face xxxxxxx financial difficulties xxxxxxx the near xxxxxxx direct competitors xxxxxxx Starbucks are:  xxxxxxx xxxxxxx group; xxxxxxx corp.; and xxxxxxx None of xxxxxxx companies xxxxxxx xxxxxxx liquidity crunch. xxxxxxx specialty eateries xxxxxxx works on xxxxxxx mechanism of xxxxxxx cash collection. xxxxxxx the chances xxxxxxx xxxxxxx dry  xxxxxxx almost nil. xxxxxxx cash position xxxxxxx almost xxxxxxx xxxxxxx all the xxxxxxx However other xxxxxxx may be xxxxxxx due to xxxxxxx specific situations xxxxxxx circumstances.

The company xxxxxxx xxxxxxx favourable xxxxxxx for buyers xxxxxxx invest in xxxxxxx firm.

Strengths:

  • Dominant xxxxxxx xxxxxxx brand equity
  • Sound xxxxxxx position
  • Speedy expansion xxxxxxx brand awareness

Weakness:

  • Higher xxxxxxx compared to xxxxxxx operating cost

 

Opportunity:

  • Entry xxxxxxx Asian market
  • Product xxxxxxx xxxxxxx access xxxxxxx international countries
  • Co-branding xxxxxxx other food xxxxxxx style="margin-left:18.0pt;">Threats:

    • Entry xxxxxxx xxxxxxx global market
    • Increasing xxxxxxx conflict in xxxxxxx countries over xxxxxxx and political xxxxxxx union problems
    • Minimization xxxxxxx differentiation by xxxxxxx xxxxxxx style="margin-left:18.0pt;">Starbucks xxxxxxx seems an xxxxxxx avenue to xxxxxxx by xxxxxxx xxxxxxx Despite entry xxxxxxx and higher xxxxxxx the company xxxxxxx with strategies xxxxxxx as co-branding) xxxxxxx help in xxxxxxx xxxxxxx firm’s xxxxxxx to its xxxxxxx style="margin-left:18.0pt;"> 

       

       

       

       

      REFERENCES:

      http://www.buzzle.com/articles/horizontal-analysis.html

      http://www.starbucks.in/about-us/company-information

       

       

       

       

       

       

       

      EXHIBIT:

      The xxxxxxx statement of xxxxxxx Corporation:

      Period xxxxxxx align="right">Sep 30, xxxxxxx xxxxxxx 2, xxxxxxx align="right">Oct 3, xxxxxxx colspan="2">

      Total Revenue xxxxxxx align="right">13,299,500   xxxxxxx xxxxxxx

      10,707,400   xxxxxxx colspan="2">

      Cost of xxxxxxx align="right">5,813,300  

      4,915,500  

       

      Gross xxxxxxx

      7,486,200   xxxxxxx align="right">6,784,900  

       

       
       

      Research xxxxxxx align="right">-  

       

      Selling General xxxxxxx Administrative

      5,149,200  

      4,456,200  

       

      Non xxxxxxx align="right">-  

      53,000  

      550,300  

      523,300  

       

      Total xxxxxxx Expenses

      - xxxxxxx align="right">-  

       

      Operating Income xxxxxxx Loss

      1,728,500   xxxxxxx align="right">1,419,400  

       

      Income from xxxxxxx Operations

       
       

      Total xxxxxxx xxxxxxx Net

      146,100  

      50,300  

       

      1,469,700  

       
       

      Interest xxxxxxx align="right">32,700  

      33,300  

       

      Income Before xxxxxxx align="right">2,059,100  

      1,811,100  

       

      Income Tax xxxxxxx align="right">674,400  

      563,100  

      (2,300)

      (2,700)

       
         

      Net Income xxxxxxx Continuing xxxxxxx xxxxxxx align="right">1,419,400  

      1,093,700  

       

      Non-recurring Events

       

      - xxxxxxx align="right">-  

       
       

      Extraordinary xxxxxxx align="right">-  

      - xxxxxxx style="width:30px;"> 

      Effect Of xxxxxxx Changes

      - xxxxxxx align="right">- xxxxxxx xxxxxxx  

       
       

      Other xxxxxxx align="right">-  

      - xxxxxxx colspan="5"> 

       
         

      1,245,700   xxxxxxx xxxxxxx

       

      - xxxxxxx align="right">- xxxxxxx xxxxxxx  

       
         
      1,383,800  

      945,600   xxxxxxx sheet of xxxxxxx xxxxxxx as xxxxxxx :

       

      Period xxxxxxx align="right">Sep 30, xxxxxxx align="right">Oct 2, xxxxxxx align="right">Oct 3, xxxxxxx xxxxxxx colspan="5">

      Assets

       

      Cash xxxxxxx Cash Equivalents

      1,148,100  

      902,600  

      285,700  

      724,600  

      606,900  

       

      Inventory

      965,800  

      543,300  

      156,500  

      Total Current xxxxxxx

      4,199,600   xxxxxxx align="right">3,794,900   xxxxxxx xxxxxxx

      Long xxxxxxx Investments

      575,900  

      533,300  

      Property xxxxxxx and Equipment

      2,355,000  

      2,416,500  

      399,100  

      321,600  

      - xxxxxxx align="right">70,800  

      Accumulated xxxxxxx align="right">- xxxxxxx xxxxxxx  

      - xxxxxxx colspan="2">

      Other Assets

      409,600  

      346,500  

      - xxxxxxx align="right">-  

       

      7,360,400   xxxxxxx align="right">6,385,900   xxxxxxx xxxxxxx colspan="5">

      Liabilities

      Current xxxxxxx style="width:30px;"> 

      Accounts Payable

      1,626,500  

      1,365,000  

      -  

      - xxxxxxx xxxxxxx Current xxxxxxx align="right">510,200  

      449,300  

       

      Total xxxxxxx Liabilities xxxxxxx xxxxxxx

      2,075,800   xxxxxxx align="right">1,779,100  

      549,500  

      549,400  

      345,300  

      375,100  

      Deferred xxxxxxx xxxxxxx Liability xxxxxxx align="right">-  

      - xxxxxxx colspan="2">

      Minority xxxxxxx xxxxxxx align="right">2,400  

      7,600  

      - xxxxxxx align="right">-  

       

      2,975,500   xxxxxxx xxxxxxx

      Stockholders' Equity

      - xxxxxxx xxxxxxx  

      - xxxxxxx colspan="2">

      Redeemable Preferred xxxxxxx align="right">-  

      - xxxxxxx colspan="2">

      Preferred Stock

      - xxxxxxx xxxxxxx  

      700  

      700  

      Retained xxxxxxx align="right">5,046,200  

      Treasury Stock

      - xxxxxxx align="right">-  

      39,400  

      145,600  

      Other xxxxxxx Equity

      22,700  

       

      5,109,000  

       

      Net xxxxxxx Assets

      4,063,300   xxxxxxx align="right">3,341,500  

       

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