This hint performs the calculation and interpretation of basic financial analysis, including common size profit and loss statements and financial ratios. It emphasizes relationships between financial results and operational strategy. It uses the results for Starbucks Corporation for the fiscal year 2010-2012 to provide context for interpreting financial analysis. Starbucks’ global presence and well-known business model make it a particularly useful vehicle for illustrating interpretation of financial … Read more »

This hint performs the calculation and interpretation of basic financial analysis, including common size profit and loss statements and financial ratios. It emphasizes relationships between financial results and operational strategy. It uses the results for Starbucks Corporation for the fiscal year 2010-2012 to provide context for interpreting financial analysis. Starbucks’ global presence and well-known business model make it a particularly useful vehicle for illustrating interpretation of financial analysis. Besides profitability ratios, asset management ratios and financial leverage ratios, DuPont analysis of return on equity (ROE) is introduced to represent, such as profitability, asset utilization, and financial leverage come together to measure the ability to return to its shareholders to generate. This tag does not draw definitive conclusions about whether Starbucks is managed effectively, but it shows how Starbucks’ operating strategy in its financial results reflected. It shows that the financial results of an intuitive story to tell about a company’s business model and operating strategy. This note takes a good knowledge of profit and loss accounts and balance sheets. Its target audience are non-financial managers in an executive program to understand how their corporate-level operating decisions affect financial performance. It is also useful for MBA students in a core finance or accounting course.
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Kathleen Hevert
Source: Babson College
18 pages.
Release Date: 1 July 2013. Prod #: BAB036-PDF-ENG
Starbucks Corporation: Financial Analysis of Business Strategy HBR case solution

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