Starbucks – financial ratios | Business & Finance homework help
My organization’s financial performance during the past two years has been strong. We have increased our current ratio from 2.4 to 2.7 and our debt ratio from 0.7 to 0.6 over the same period of time, indicating that we are becoming more financially secure and liquid. Our return on equity has also improved, increasing from 19% in year 1 to 25% in year 2, reflecting higher returns for shareholders as well as evidence of sound management decisions regarding investments and capital structure. Finally, our days receivable has decreased from 33 days in year 1 to 30 days in year 2, indicating that our customers are paying their accounts on time and that we are able to efficiently collect payment for services rendered.
Overall, I am pleased with my organization’s recent financial performance based on these four ratios which show positive trends across the board over the past two years. We have been able to increase profitability while becoming more fiscally responsible and efficient when it comes to collecting payments due us by customers, creating a winning combination of healthy bottom line results while improving customer satisfaction at the same time!