Assessment of Financial Performance of Starbucks during Fiscal Years
2005 – 2009

Assessment of the financial performance of an organization is very important for both the internal as well as external stakeholders. The management of an organization analyzes its financial performance in order to understand present financial of the company. Additionally, the information obtained from the analysis is used for planning and controlling various business activities of the organization. In order to make right decisions for achieving the organizational goals, the analysis of the financial performance is essential. The external users creditors, debtors, investors, analysts and auditor also analyze the financial performance of an organization in order to understand the trend of the past performance as well as present financial position of the company. On the basis of the profitability and solvency of the company, the stakeholders will determine their position regarding relationship with the company. In this paper, the financial position of Starbucks is analyzed for five financial years between 2005 and 2009.
Financial statements of Starbucks are used for analyzing the financial position of the organization for the years 2005, 2006, 2007, 2008, 2008 and 2009. Different ratios will be calculated to explain different aspects of the financial performance such as profitability, investment, liquidity etc. In this paper significant ratios of Starbucks are calculated for consecutive five years in order to assess the financial performance of the organization.
Ratio Analysis
Ratio analysis is a quantitative technique used for analyzing the financial statements of a company. In this method, relevant, information is collected from the financial statements:

balance sheet, income statement and cash flow statement. Ratio analysis can be carried out if the