Running head: FINANCIAL RATIO ANALYSIS
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Financial Ratio Analysis
Bethany Herman
ACC/545
July 17, 2017
Hung Tran
FINANCIAL RATIO ANALYSIS
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Financial Ratio Analysis
Financial ratios are mathematical comparisons of financial statement accounts or
categories. These relationships between the financial statement accounts help investors,
creditors, and internal company management understand how well a business is performing and
of areas needing improvement, (My Accounting Course, 2017). The chart below shows various
financial ratios that are important to the overall financial health of Starbucks, it subsidiaries, and
its stockholders.
Growth Profitability and Financial Ratios for Starbucks Corp
Financials
2007-09 2008-09 2009-09 2010-09 2011-09 2012–09 2013–09 2014-09 2015-09 2016-09 TTM
Revenue USD Mil 9,411 10,383 9,775 10,707 11,700 13,276 14,866 16,447 19,163 21,316 21,976
Gross Margin % 23.3 55.3 55.8 58.8 58 56.2 57.1 58.3 59.4 60.1 60.2
Operating Income USD Mil 1,054 503 562 1,419 1,729 1,997 -325 3,081 3,601 4,171 4,317
Operating Margin % 11.2 4.9 5.7 13.3 14.8 15 –2.2 18.7 18.8 19.6 19.6
Net Income USD Mil 673 316 391 946 1,246 1,383 8 2,068 2,757 2,817 2,960
Earnings Per Share USD 0.43 0.21 0.26 0.62 0.81 0.9 0.01 1.35 1.82 1.9 2.02
Dividends USD 0.12 0.26 0.34 0.42 0.52 0.64 0.8 0.9
Payout Ratio % * 18.6 32.1 35.6 38.3 319.3 34.3 42.7 44.5
Shares Mil 1,540 1,483 1,491 1,528 1,539 1,546 1,525 1,526 1,513 1,487 1,473
Book Value Per Share * USD 1.6 1.69 2.05 2.48 2.94 3.59 3.81 3.38 3.94 3.9 3.87
Operating Cash Flow USD Mil 1,331 1,259 1,389 1,705 1,612 1,750 2,908 607 3,749 4,575 4,329
