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Starbucks has established themselves as the giant in the gourmet yet quickly served coffee industry. Sure, there are other competitors nipping at their proverbial heels like Dunkin Donuts, Caribou and Seattle's Best (at least until Starbucks bought them out) but Starbucks is national and ubiquitous on a level that these other more regional and/or smaller outfits can only dream of. Not only do they have a lockdown on the store-based market but they are also branching out into the home market by selling conventional coffee beans, K-Cups for the Keurig single-serve coffee makers and they also have started their own line of machines on top of that. While Starbucks should dare not be complacent or fail to look forward to the future, their current fortunes and progress are quite good and are unlikely to change in at least the near future due to aggressive expansion plans and good practices. Total net revenues were up in double digit percentage points clocking in at twelve percent even which comes to a grand total of nearly $15 billion USD for fiscal 2013. Global sales also went up sharply by a total of seven percent between the increases in overall transactions and the average overall transaction sale amount. In other words, people are visiting more but they are also spending more per visit. However, operating income dipped but it was attributed to a litigation cost relating to a legal fracas with Kraft Foods. Cash flow shot up nearly a billion and capital expenditures also grew by nearly double from $856 million to $1.26 billion.
The result of operations shows that the vast majority, but certainly not all, of Starbucks' revenue comes from…
Financial Reports Balance Sheet Merck discloses on its balance sheet the following components of stockholders' equity: capital stock, retained earnings, additional paid-in capital, treasury stock and accrued gains/losses. Novartis reports retained earnings, additional paid-in capital and treasury stock only. Neither of these companies has any preferred shares outstanding. Both companies report treasury shares. Merck notes in its annual report that the Board "approved the purchase of up to $5.0 billion of Merck's common
In order to analyze the financial stability and health, several important liquidity and debt ratios are necessary. The current ratio, comparing the current assets to the current liabilities in a company, was 0.95 in 2007, decreasing gradually from 2004. It is generally recommended that this ratio is 1 or higher, however, 0.95 is a value close to that, giving a good reflection of the company's short-term financial viability. This is
This has been especially true in China and other Asian countries during the past several decades of economic expansion in that region of the world (Bai et al. 2008). Government stakeholders in many of these countries have benefited along with corporations in obscure and outright false financial statements and analyses as they have attracted money form foreign as well as domestic investors an enabled national growth for many Asian
But these changes, materialized in increased sales and consequently revenues, improved quality of the products and services offered as well as the technologies used in the manufacturing process have supported the development of the corporation. From a financial point-of-view, they created the image of a strong and reliable company. The reasons why this change has financial implications is a simple one: a stronger company is better perceived by the market
This ratio eliminates the stock figure from that of current assets and like the current ratio; it is used to measure the liquidity of a firm. The quick ratio may in some instances be preferred over the current ratio as it is inherently difficult to turn some assets into cash. In regard to the two companies, the quick ratio brings out Plume Inc. As being more risky as it
Financial Analysis Understanding how a company operates within any industry is dependent upon comprehension of many financial properties. Assessing the financial stability of a company is essential in determining the company's strengths and weaknesses as well as ultimately assessing its profitability. Financial ratios should be considered a useful tool when examining the profitability and efficiency of any company. Some companies are certainly more successful and profitable than others, and pharmaceutical companies