Starbucks and Dunkin Brands financial analysis

Document Type:Thesis

Subject Area:Finance

Document 1

a. Starbucks Income statement analysis The total revenue for Starbuck increased by 13% from to $ 6. 7 billion in the year 2016 as compared to $ 5. 96 billion that of the previous fiscal year 2015. This figure recorded a percent growth for the year 2017 by a small positive margin of 1. 6% rise. The Recurrent operations revenue in the year 2015 was $ 2. 76 billion, $ 2. 82 billion in the fiscal year 2016 and finally, $ 2. 88 billion in the year 2017 (Yahoo. The net income increased by 4. 7% to $2. 88 billion in the fiscal year 2017, $ 2. 82 billion in the year 2016 and $ 2. 76 billion in the year 2015. 78 billion from 2015 to 2016 and that from 2016-2017 was $ 0. 12 billion while Dunkin’ Brand realized revenue increase of $ 0. 03 billion between the years 2015-2016 and an increase of $ 0. 04 billion in the fiscal year 2016-2017. Concerning the revenue, Dunkin’ brand is considerably smaller as compared to Starbucks, which can reduce its financial stability and volatile with lots of growth opportunities.

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Dunkin’, on the other hand, registered an increase of $ 0. 1 billion from 2015 to 2016 and a significant improvement of $ 6. 6 billion from the fiscal year 2016 to 2017. These are the business most liquid assets, meaning Dunkin has more liquid assets as compared to Starbucks (Nasdaq. The total revenue for Starbuck rose by $ 780 million from the fiscal year 2015 to 2016, followed by another increase of $ 120 million from 2016 to 2017 as compared to that of the Dunkin’ that realized total revenue growth of $17. 88 billion in the year 2017, which represents a percentage increase of 4. 65 while that of Dunkin’ stands at a positive growth of $ 245. 68 million. The situation in the two organizations might be as a result of increased earnings and taxes (Nasdaq. In both Starbuck and Dunkin’, there was no expenditure data for the non-recurrent operations this might indicate that the two organizations are profit oriented and they only maximize on the essential and profit-generating activities.

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6 million in the years 2016 to 2017. Considering the balance sheet of competitors like Dunkin’, brands, Starbucks companies has registered a positive growth in their net receivables by 21. 1% and while Dunkin’ has been struggling to stabilize their net receivables, with the company realizing a decrease of 20. 1%: the favorable improvements in Dunkin’ Brands is due to the suitable changes in the current liabilities and assets as well as the high net income (Yahoo. The balance sheet of Starbucks is excellent as far as cash flow is concerned. The long-term debt of Dunkin’ is has been increasing over the year and currently it is $ 2. 42 billion representing 75. 7 % of the total assets for the year 2015, $ 2. 40 billion which is 74. 4% of the total assets for the financial year 2016 and $ 3.

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