This rate is twice the market value for a pound of coffee. Under this arrangement buyers such as Starbucks also provide technology transfer, technical assistance, and monetary loans to finance the agricultural operation. Starbucks Café is helping raise the standard of living of the agricultural workers.
Starbucks Café opened up its first store in 1971 in Seattle’s Pike Place Market (Starbucks, 2009). The company expanded rapidly and by the end of the decade the firm had 84 establishments. Once the company became a publicly traded firm in 1992 its CEO implemented an organic growth model. The results were amazing. By the turn of the century the corporation had over 3,500 stores. Today Starbucks Café operates over 7,000 stores worldwide. The financial results of the company for fiscal year 2008 are discussed in the paragraph below.
During 2008 the company achieved global revenues of $10,383 million. The net income of the company was $315.5 million. The net margin of the corporation was 3.03%. The earnings per share of Starbucks Café was $0.43. At the end of 2008 the company had $5,672.6 million in total assets. The total liabilities of the corporation were $3,181.7 million. The total equity of the corporation was $2,490.9 million. The debt to equity ratio of the company was 1.28. The metric is a little high since a healthy debt to equity ratio should be 1.0 or below.
The fiscal year of the company started on October 1, 2007 and ended September 30, 2008. The management discussion and analysis section of the annual report discussed the sales activity of the company in 2008. The US marketplace generated 76% of the company’s revenues. During 2008 the sales of individual US stores declined due to lower customer traffic. The stores in Canada and the United Kingdom behaved in a similar manner. The sales declined at these stores by about 5%. The global economic recession was one of the primary reasons for the lower revenue results. The independent auditors