FINANCIAL STATEMENT ANALYSIS PROJECT
BAT4M1

Grayden M. Garside.

Starbucks is the largest coffeehouse company in the world and originates from Seattle, Washington. The first Starbucks was opened in Seattle on March 30, 1971. The three founders met while they were students at the University of San Francisco: English teacher Jerry Baldwin, history teacher Zev Siegl, and writer Gordon Bowker. The founders were inspired by Alfred Peet, coffee roasting entrepreneur, to sell his high-quality coffee beans and equipment. Since the first Starbucks opening in 1971, 18,065 stores have followed. Starbucks is the premier roaster, marketer and retailer of specialty coffee in the world, operating in 60 countries. Starbucks is also a very profitable company; it has steadily made money each year since 2008 and has been increasing the amount of money made each year substantially. Last year, 2012, Starbucks had almost two billion dollars in profit, which is almost four times as much as what they made it 2008. This increase in income was caused by the massive growth of the company and all the new coffeehouses being opened in emerging markets such as China and Japan. On top of record high profits Starbucks also had record high profit margins, being 15%, so every one dollar in revenue they received they made fifteen cents off that dollar. Starbucks came out with a lot of new innovations such as Starbucks’ own coffee brewer for the home, the Verissimo. Also new varieties of drinks and food were introduced that provide the customer with more variety and choices, which generate more revenue.

Horizontal Analysis
Horizontal Analysis is used to evaluate a series of financial data by determining if an increase or decrease has taken place. Amount $ | Change % | 40.5 | 3.5 | (54.2) | (6.0) | 99.4 | 25.7 | 275.7 | 28.5 | 35 | 21.7 | 8.3 | 3.6 | 404.7 | 10.7