2- Financial Ratios

C0VOID-19, and Starbucks Corporation (NASDAQ:SBUX) was no exception. The stock fell to well under $60 a share, then rebounded to a 52-week high of over $126. Unfortunately for those with a stake in the company, it now trades for less than one hundred bucks. Increased union activity, an uncertain outlook for the China business, rising labor costs, supply-chain challenges, and increased competition are weighing on the stock.

So why did Starbucks fall, and what are the chances it will recover?
There were several positives to be found in the most recent quarterly report. Even so, a nascent union movement, management’s moves to raise wages, rising inflation, and a less than stellar report from the firm’s Chinese business have some investors worried.

Starbucks inventory shows no changes from 2020 to 2021 which indicates an average of 4.3 weeks per turnover which is the standard measurement. However, QSR has a 1.5 inventory turnover which is due to saleable inventory
After an issue finding industry averages, I compared Starbucks to a single competitor, Restaurant Brands International (RBI). RBI owns Tim Hortons and Burger King. I did not use Dunkin Donuts because it is privately held, and financials are not available.
Quick ratio ,Current ratio
Liquidity ratios include the current ratio and the quick ratio. For Starbucks, the liquidity ratios are similar for fiscal years 2021 and 2020. FY 2021, Starbucks is like RBI for the most recent fiscal year. Starbucks quick ratio
Asset management ratios include inventory turnover and account receivable turnover ratios. Starbucks inventory turnover shows is steady from 2020 to 2021. The number of weeks to turnover inventory equals 52 weeks divided by the inventory turnover ratios (1.5). Starbucks takes 4 weeks to turn over its inventory. RBI has a shorter turnover which is significantly better than Starbucks 52 weeks divided by 34.80 equals a 1.5 turnover of inventory. Higher inventory turnover is better, because of the cost of purchasing and storing inventory. Starbuck has may have too much inventory based on a comparison to RBI. Debt exceeds liabilities which is not new for Starbucks, because of expansion and licensee.
Starbucks is lease concerned with inventory because inventory generates sales and turns sales into cash. Starbucks’ quick ratio is not a concern, again they generate cash.
Move through our inventory,

Solvency is debt (leverage) (Long -term Solvency) ratios

Account receivables turnover is not meaningful for these two companies they are cash businesses. Starbucks account receivables represent three percent of sales. RBI account receivables are ten percent of sales. Receivables consist of license fees and sales of equipment to the licensee.
Solvency Ratio: Debt to assets
Debt to Equity
The debt to the asset of Starbucks improved from 22012 to 2013(0.38 to 0.61), deteriorated from 2013 to 2014(0.61 to 0.51), and before a slight improvement from 2014 to 2015 (1.0 to 1.1). Debt to equity ratio expresses the total

Profitability ratio
Return to equity
Return on assets