We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Starbucks's finacial analysis - Essay Example

Comments (0) Cite this document
The weighted average cost of capital of Starbucks is determined with the weighted average of the cost of debt and the cost of equity. The cost of equity for Starbucks is the cost incurred by the…
Download full paperFile format: .doc, available for editing
Polish This Essay95.7% of users find it useful
Starbuckss finacial analysis
Read TextPreview

Extract of sample
"Starbucks's finacial analysis"

Download file to see previous pages The cost of equity is calculated by the formula: Ce = Rf + (Em-Rf)*b, where
The cost of debt of Starbucks is very low as the company has the vision to attain minimum debt. The amount of debt raised by Starbucks is very low. Due to the tax shield, the cost of debt of Starbucks is very low. The tax rate of Starbucks is 32.8%.
The cost of equity and the cost of debt of Starbucks are multiplied respectively to the respective proportions of the debt and equity. The weighted cost of debt and weighted cost of equity are added to find the weighted average cost of capital (Yahoo finance, 2013). The weighted average cost of capital of Starbucks is 11.14%.
The earnings before interest and taxes of Starbucks are about 15.7% of the total revenue in 2012. The earnings before interest and tax are the net earnings after operation before interest and taxes are paid (Baker and Powell, 2009). The increase in EBIT over the last three years is depicted in the table given below.
The FCF for Starbucks has been calculated below with the help of formula: Net Earnings before paying interest and tax * (1- tax rate) + Amortization and Depreciation – Net change in working capital – Capital Expenditure.
The depreciation and amortization expense of the company consists of the expenses written off by the loss of valuation of its assets due to usage and part of the expenses due to repayment of the loans consisting of principal and interest payments. The depreciation and amortization of the company has increased by 5.56% from 2011 to 2012.
The working capital of Starbucks is determined as the net of the current assets after meeting the current liabilities of the company to run its daily operations. The working capital of Starbucks has changed over the years which could be indicated by the trend of change in working capital over the years (Khan, 2004).
The compounded annual growth rate ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Starbucks's finacial analysis Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1622748-starbuckss-finacial-analysis
(Starbucks'S Finacial Analysis Essay Example | Topics and Well Written Essays - 750 Words)
“Starbucks'S Finacial Analysis Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/finance-accounting/1622748-starbuckss-finacial-analysis.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
Chamberlin & Castings Plc Finacial Management
The merger involves mutual decision of the respective companies to become a single entity. A takeover or acquisition means purchase of a company by another company, but it is not as a consequence of a mutually agreed decision between the concerned entities.
8 Pages(2000 words)Essay
Finacial Analysis
Proctor and Gamble has Cincinnati, Ohio as its headquarters. It was formed in October 31st, 1837 through a partnership by William Proctor and James Gamble, who had married into the same family and was convinced by their father in law to become business partners which they did.
6 Pages(1500 words)Research Paper
This is a corporate level strategy to align the business with mission statement, a requirement for aligning stakeholder values and principles with operational strategy. Because of this mission and corporate level conception, Starbucks is able to transform its image to that of corporate social responsibility in order to achieve the market gains that the business is looking for.
3 Pages(750 words)Essay
Finacial management
Investment decision involves considering a number of competing projects to decide which represents a best investment in terms of value for money. The investment decision before us is significant in that it concerns cash outflows more than cash inflows as an investment in constructing/repairment of office premises used mainly (but not solely) for the accomodaring of department (A)'s employees normally would.
12 Pages(3000 words)Essay
International Finacial Analysis
The companies that are investigated in this regard are Tesco plc and Target Corporation; both are reputable and well-known companies from the retail sector. This paper illuminates the differences in accounting regulatory environment of these countries, propounds their relevance with accounting classification models, states distinctions in the accounting policies underlying the preparation of these companies' financial statements, the social reporting and segmental reporting disclosures in their annual reports, and the accounting ratio analysis.
9 Pages(2250 words)Case Study
Nokia Finacial problems and its possible solutions
These groundbreaking events made the mobile revolution possible in the future, as they helped other new technologies to be explored. In 1992, when Jorma Ollila took
9 Pages(2250 words)Essay
Compare two finacial statmetns
The Financial Accounting Standards Board (FASB) is also involved with how these standards are identified and then presented with
4 Pages(1000 words)Essay
The management pool is also steeped in experience, with a large percentage of it having more than a decade of experience. A large proportion likewise have been in their current position from one to five years. A majority number see ladders of
1 Pages(250 words)Essay
Critically assess the value, to a shareholder, of the information in the Finacial Statement
884, its group revenue is reported at £10.3 billion in 2014 where 55% of turnover is comprised of food items whereas the rest 45% is comprised of general merchandise as of March 2014. Further, about 89% of M&S revenue is generated from its UK stores whereas 11% of its turnover
16 Pages(4000 words)Essay
Strategic Analysis
It is renown in the coffee shop industry due to its extraordinary services and longtime existence in the market. Their largest market share is however in the United States (Starbucks, 2014, retrieved from
12 Pages(3000 words)Essay
Let us find you another Essay on topic Starbucks's finacial analysis for FREE!
Contact us:
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us