Evaluating Starbucks Financial History
The Starbucks that is known by all today was first founded in Seattle, Washington in 1985, but before the name was changed in 1987 to Starbucks from Giornale Coffee Company. It was founded by Howard Schultz, who is the chairman, president, and chief executive office. Though the first Starbucks was actually opened back in 1971, it was different than what is around today and was bought out by Howard Schultz and other investors in 1987 (Starbucks Investor Relations, 2013). The Starbucks headquarters is located in Seattle.

Many things can be found inside of a Starbucks, not just coffee, though it is the main specialty of the company. The company purchases, roasts, and sells its whole been coffee to consumers. Starbucks also sells a big variety of fresh brewed coffee, espressos, specialty teas, and of course cold blended coffee drinks called Frappuccino’s. Food items are sold at the locations also like baked treats, sandwiches, and even fruit. There are also Starbucks specialty coffee mugs, travel mugs, and a line of coffee brewing accessories that can be purchased through the company operated stores. Though that is still not the end of the Starbucks product line, supermarkets, grocery stores, etc. also carry Starbucks ready to drink beverages.

Summary of Starbucks current financial performance
Going through the Starbucks income statements, the company had an increase of 13.7% in revenue from 2011 to 2012, but even a higher increase in the cost of goods sold at 18.3% telling me that the cost of product went up. They still had an increase in the gross profit of 10.3% from the previous year. Going on to the operating expenses the company’s selling general and administrative expenses have gone up a little bit, which makes it look like the company is working to find new ways to improve the company, but that did not mess with the operating income which is at 15.6% higher than the year before, but in proportion to the company’s revenue it has a steady percentage of about 37% going to expenses each year. It does seem like Starbucks has found what works for the company and if continued it will most likely keep seeing increases in profit. The net income of the company has gone up $138.1 million from 2011 to 2012 which gives the company about an 11% increase, but the net profit margin seems to stay close to the same as the previous year at about a 10.5%.

Looking at Starbuck’s Balance sheet, the company looks like they are doing well. The cash on hand from the company has increase a little bit from 2011, as well as the account receivables. The inventory has increased $275.7 million from the year before, which makes me think that they are planning on selling much more product through the next year. It does look like a good decision since the company looks like it will continue having an increase in profit. The company’s current and long-term assets both had increases

Get Your Essay

Cite this page

Giornale Coffee Company And Main Specialty Of The Company. (April 2, 2021). Retrieved from https://www.freeessays.education/giornale-coffee-company-and-main-specialty-of-the-company-essay/