Question

Choose a publicly traded company and perform an expanded analysis on the financial statements. Use the most current 10K statements available on SEC or annual statements in Yahoo Finance. The comapny chosen for this project is STARBUCKS INC. Complete the following for your chosen firm:

Horizontal and vertical analysis of the income statements for the past three years (all yearly balances set as a percentage of total revenues for that year).

Horizontal and vertical analysis of the balance sheets for the past three years (all yearly balances set as a percentage of total assets for that year).

Ratio analysis (eight ratios of your choosing) for the past three years PLUS a measurement for the creditworthiness of your firm as measured by Altman’s Z-score. Note that if you used your chosen firm for our ratio-related discussion posts, then you MUST also present industry-average ratios or current year competitor ratios for your ratio analysis. Comparing your firm’s ratios to a close competitor or an industry-average ratio makes your analysis much more meaningful.

Answer 1

Income Statement All umbers in tiousands Horizontal Analysis Vertical Analysis 12/31/2013 (values inserted % change % change from 2016 from 2015 12/31/201612/31/2015 12/31/2014 from 10k) 12/31/2016 12/31/2015 12/31/2014 to 2015 Revenue Total Revenue Cost of Revenue Gross Profit Operating Expenses Research Development Selling General and Administrative Non Recurring Others Total Operating Expenses Operating Income or Loss to 2014 135,987,000 107,006,00088,988,000 74,452,000 88,265,000 71,651,00062,752,000 54,181,000 47,722,000 35,355,000 26,236,000 20,271,000 100% 65% 100% 67% 33% 27% 23% 35% 100% 20% 29% 35% 0% 31% 0% 43,536,00033,122,00026,058,000 19,526,000 32% 27% 4,186,000 2,233,000 178,000 745,000 87% 1154% Income from Continuing Operations Total Other IncomeExpenses Net Eamings Before Interest and Taxes Interest Expense Income Before Tax ncome Tax Expense Minority Interest Net Income From Continuing Ops Non-recurring Events Discontinued Operations Extraordinary Items Effect Of Accounting Changes Other Items Net Income Net Income Preferred Stock And Other Adjustments Net Income Applicable To Common Shares 0% 192% 206,000 4,376,000 2,027,000 459,000 3,892,000 1,568,000 950,000 0% 161% 116% 1947% 119% 148%1-1513% 190,000 79,000 99,000 210,000 111,000 167,000 98,000 647,000 141,000 506,000 161,000 0% 0% 484,000 1,425,000 2,371,000 50% 596,000 241,000 274,000 298% 347% 096 0% 0% 2,371,000 596,000-241,000 274,000 298% 347% 2.371.000 596,000 241,000 274,000 298% 347%