Essay About Company’S Net Revenues And 2016Total Assets

Mba 503 – Starbucks Analysis
Essay Preview: Mba 503 – Starbucks Analysis
Report this essay
Milestone OneSouthern New Hampshire UniversityCharles HopkinsSTARBUCKS ANALYSIS        Reviewing the horizontal and vertical analysis of the Income Statement shows several points, regarding Starbucks.  While the company’s net revenues were not growing as quickly in FY2016 as in FY2015, they offset the growth in revenue by doing a much better job at controlling expenses.  Among the cost-savings, Starbucks reduced the level of their cost of goods while maintaining relatively even store operating costs.  Additionally, their year over year depreciation has dropped, even though the amount of depreciation to net revenue remains even, primarily due to the shift in the composition of the store portfolio in the region to more licensed stores (approximately 40 basis points).  The company also pulled back large portions of their financing year over year, which cuts down on the liabilities side.  A more in-depth analysis can be done by looking at the balance sheet:        The largest portion of asset increased between FY15 and FY16 came from Sales, showing through Cash and Accounts Receivable.  Starbucks did not occur any changes in Land costs in FY16.  However, their Building costs increased by 11.4% and their Lease Improvements increased by 8.93%.  This would indicate that while the company did not build any extra locations, they did improve or expand on existing locations.  With an increase of 13.13% on Store Equipment, 11.62% on Roasting Equipment, and 6.65% on Furniture, it would appear the plan for Starbucks in FY16 was to grow itself internally by improving the experience of existing customers rather than trying to get into new markets.        The company’s accrued liabilities increased 13.89% as well.  This was mostly due to Accrued Taxes increasing 42.24%, Accrued Dividends payable increasing 22.93%, and Accrued Capital increasing 14.36%.  The company’s Accrued Compensation actually decreased by 2.2% which is less likely to be from a decrease in staff and more likely modifications to compensation plans regarding health plans or bonuses, which includes the Management Deferred Compensation Plan.  However, an increase of over 19% in stored card value would indicate a lot of future sales from gift card purchases.  The vertical analysis does not show a lot of changes; however, long term investments tripled and retained earnings dropped by over 8%.  These would seem to indicate the company is opting to withhold money from investors to earn more through investments at this point in time.  APPENDIXVERTICAL ANALYSIS OF BALANCE SHEETVERTICAL ANALYSIS OF BALANCE SHEET  FY 2015 FY 2016Total Assets (millions)  $         12,416.3   $         14,329.5 Cash to Total Assets $        1,530.1 12.32% $           2,128.8 14.86%Acct Receivable to Total Assets $           719.0 5.79% $              768.8 5.37%Inventory to Total Assets $        1,306.4 10.52% $           1,378.5 9.62%LTI to Total Assets $           312.5 2.52% $           1,141.7 7.97%Property/Plant to Total Assets $        4,088.3 31.64% $           4,533.8 32.93%Total Liabilities (millions)  $           6,596.5   $           8,438.8 Acct Payable to Total Liabilities $           684.2 10.37% $              730.6 8.66%Accrued Liabilities to Total $        1,755.3 26.61% $           1,999.1 23.69%Retained Earnings to Total L/E $        5,974.8 48.12% $           5,949.8 41.06%Long Term Debt to Total $        2,347.5 35.59% $           3,202.2 37.95%HORIZONTAL ANALYSIS OF BALANCE SHEETFY15FY16Change in $% ChangeTotal Current Assets $        3,971.0  $           4,760.5  $              789.5 39.13%Cash + Accounts Receivable $        2,249.1  $           2,897.6  $              648.5 28.83%Property/Plant/ Equipment $        4,088.3  $           4,533.8  $              445.5 10.90%Total Assets $      12,416.3  $         14,329.5  $           1,913.2 15.41%Accounts Payable $           684.2  $              730.6  $                46.4 6.78%Accrued Liabilities (payroll/taxes) $        1,755.3  $           1,999.1  $              243.8 13.89%Stored Value Card Liability $           983.8  $           1,171.2  $              187.4 19.05%Total Current Liabilities  $        3,648.1  $           4,546.9  $              898.8 24.64%Long Term Debt $        2,347.5  $           3,202.2  $              854.7 36.41%Total Liabilities $        6,596.5  $           8,438.8  $           1,842.3 27.93%Total Equity $        5,819.8  $           5,890.7  $                70.9 1.22%

Download as:
txt (10.7 Kb)
docx (184.5 Kb)
Continue for 7 more pages »
Read Full Essay
Only available on Essays24.com
Citation Generator
MLA 7
CHICAGO
(2017, 05). Mba 503 – Starbucks Analysis. Essays24.com. Retrieved 05, 2017, from
“Mba 503 – Starbucks Analysis” Essays24.com. 05 2017. 2017. 05 2017 < "Mba 503 - Starbucks Analysis." Essays24.com. Essays24.com, 05 2017. Web. 05 2017. < "Mba 503 - Starbucks Analysis." Essays24.com. 05, 2017. Accessed 05, 2017. Similar Essays Starbucks Swot Analysis STARBUCKS: Image: Trying everyday to become, ÐŽ§the most recognized brand in the world.ЎЁ Strategy: Applying the highest standards of excellence to the purchasing, roasting, and 306 Words  |  2 Pages Starbucks Analysis Table of Contents 1.0 Executive Summary 03 2.0 Company Overview 04 2.1 Company Structure 04 2.2 Mission Statement 05 2.3 Financial Analysis 06 3.0 Competitive 7,199 Words  |  29 Pages Case Analysis/Starbucks November 2, 2006 Make Conflict Work for You This article was found on the Training Magazine Website. Sharon Fink, the author eludes to the fact 254 Words  |  2 Pages Starbuck Online Analysis Starbucks Coffee 5 Cs: Customer Needs, Company skills, Competition, Collaborators, Context 1. What factors accounted for the extraordinary success of SB in the early 1990s? 527 Words  |  3 Pages Starbucks Analysis Starbucks opened operations in Seattles Pike Place Markets in 1971 with the future aim of providing coffee to a number of restaurants and surrounding bars. 3,766 Words  |  16 Pages Starbucks Company Analysis Catching the Starbucks Fever Starbucks History Starbucks opened operations in Seattles Pike Place Markets in 1971 with the future aim of providing coffee to a 9,818 Words  |  40 Pages Starbucks Analysis Introduction This report was written by three Arnhem Business School students for the purpose of providing a full analysis of the Starbucks Coffee Corporation. Although 9,682 Words  |  39 Pages Starbucks Analysis II. Starbucks Mission Statement Establish Starbucks as the premier purveyor of the finest coffee in the world while maintaining our uncompromising principles as we grow. 2,170 Words  |  9 Pages Similar Topics Pepsico Analysis Analysis Poem Environmental Mission Vision Values Starbucks A Critical Analysis Of Personal Leadership Style With Investment Analysis And Lockheed Tri Star Case Solution Critical Analysis Personal Leadership Style Browse 74,000+ Papers and Essays Join 431,000+ Other Members High Quality Documents Sign up © 2010–2020 Essays24.com Browse Essays Join now! Login Search Support Site Map Privacy Policy Terms of Service Facebook