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Annual Report Analyze: Star Bucks - Essay Example
The overall condition of liquidity position of the company is looking quite suitable and stable. Firm is looking completely in situation to solve all of its problems in the form of any kind of crisis…
But the overall performance of the firm in year 2005 was much more unreliable, because the firm is not doing its job satisfactorily. If we look at all three ratios for the year 2005,.becauze current ratio and acid test ratio are are going down and in the year 2005 the current ratio is very unreliable as total current liabilities exceeds the total current assets. Working capital ratio explains the strength of a company it has been evident that the company’s strength is good in past years but now in 2005 the firm is in financial distress. As we have seen that the stock prices of the company is performing good in the market and in 2002 the stock price starts from 10$ and making growth in the profitability the stock price goes to 25$ in the year 2005. the stock price is performing well in the market but we have seen that in the year 2003 the volume of the stock are quite high which have some fall in the year 2004 and 2005 it shows that the interest of investors fall down which is not good for future transactions
If we analyzed that the company is performing good in its profitability area and have much profit for the share holder and we have analyzed that share holder equity is increasing from 2002 to 2004 but in the year 2005 the situation is not in the favor of share holder.