MBA 503
MBA 503- Final Project: Financial Analysis
Jeffrey Tello
Southern New Hampshire University
, 1.
Introduction
Started in 1971, Starbucks has become the premier coffee chain in America and across
the world. It has been known for its variety and high-quality, unique coffees, teas, and
Frappuccino. Today Starbucks over 31,000 stores in 70 plus countries. Starbucks has made long
term investments with their partners, stores, and beverage innovation to deliver an elevated
experience to their customers. These investments have allowed the company to enter into
markets, despite the risks involved. This paper will assess Starbucks efficiency through
horizontal and vertical analysis and offer a brief description of the methods used to conduct such
analysis while discussing the results. Next, conduct a ratio analysis based on liquidity, solvency,
and profitability. The final part will review GAAP principles and the role it plays on Starbucks
development. The purpose of this analysis is to evaluate Starbucks financial health and
profitability through 2019 and 2020.
Methodology
This analysis used two different tolls of data gatherings:
Quantitative: In order to generate the vertical and horizontal analysis of the income statement
and balance sheet, excel was used.
Qualitative method: Secondary sources were used including Starbucks annual report for the
fiscal year ending in September 2020 .
Financial Analysis
Starbucks ' financial analysis helps identity benchmarks and address concerns that may
arise with its competition. This financial analysis will help Starbucks improve its productivity
and profit margin and will be conducted using various tools and multiple research and
observations on Starbucks' financial reports. The information found in this paper will provide
MBA 503- Final Project: Financial Analysis
Jeffrey Tello
Southern New Hampshire University
, 1.
Introduction
Started in 1971, Starbucks has become the premier coffee chain in America and across
the world. It has been known for its variety and high-quality, unique coffees, teas, and
Frappuccino. Today Starbucks over 31,000 stores in 70 plus countries. Starbucks has made long
term investments with their partners, stores, and beverage innovation to deliver an elevated
experience to their customers. These investments have allowed the company to enter into
markets, despite the risks involved. This paper will assess Starbucks efficiency through
horizontal and vertical analysis and offer a brief description of the methods used to conduct such
analysis while discussing the results. Next, conduct a ratio analysis based on liquidity, solvency,
and profitability. The final part will review GAAP principles and the role it plays on Starbucks
development. The purpose of this analysis is to evaluate Starbucks financial health and
profitability through 2019 and 2020.
Methodology
This analysis used two different tolls of data gatherings:
Quantitative: In order to generate the vertical and horizontal analysis of the income statement
and balance sheet, excel was used.
Qualitative method: Secondary sources were used including Starbucks annual report for the
fiscal year ending in September 2020 .
Financial Analysis
Starbucks ' financial analysis helps identity benchmarks and address concerns that may
arise with its competition. This financial analysis will help Starbucks improve its productivity
and profit margin and will be conducted using various tools and multiple research and
observations on Starbucks' financial reports. The information found in this paper will provide
