Evaluate cash flow - whole food market and starbucks coffee

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Reference no: EM131792085

Choose Whole Food Market and Starbucks Coffee

Guidelines

Overview: In Milestone Two, you evaluated the recent cash flow and other working capital cash flow management practices of the two firms for your final project. For this last milestone, which is due in Module Seven, you will now evaluate the liquidity and financial ratios of both companies; using the financial ratio calculations you make, you will identify the strengths and weakness of each firm.

Prompt: Review your work on Milestones One and Two, read Chapter 2 in your textbook on working capital ratios and other metrics, and then, in a 2- to 3-page paper, analyze the activity, financial leverage, liquidity, profitability, and market ratios for each company you are researching for your final project. Conclude your paper by discussing each firm's strengths and weaknesses.

The following critical elements must be addressed:

Evaluation of the Firms
C. Evaluate both companies' liquidity. Cite specific examples and figures that support your evaluation.
D. Calculate both companies' financial ratios:
  1. Activity ratios, including inventory turnover ratios
  2. Debt ratios (financial leverage)
  3. Profitability and market ratios
E. Using the financial ratio calculations above, identify strengths and weaknesses for each firm, citing specific examples and figures to support your response.

As you work on this milestone, consider the recommendations you will make in your final project submission to improve the weaknesses you identified in each firm. Be sure to incorporate instructor feedback in your final project, which is due in Module Nine.

Verified Expert

In the given assignment, on the basis of annual reports of the selected firms, the questions in the assignment were answered having regard to evaluation of liquidity of both the firms. Indication of financial ratios of both the firms on the basis of financials and identification of strength and weakness of the firms on basis of the ratios.

Reference no: EM131792085

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Evaluate cash flow - whole food market and starbucks coffee : FIN 610 - evaluated the recent cash flow and other working capital cash flow management practices of the two firms for your final project
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inf1792085

7/5/2018 5:44:08 AM

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len1792085

1/2/2018 1:32:52 AM

Evaluation of the Firms: Strengths and Weaknesses Identifies strengths and weaknesses for each firm based on the financial ratio calculations, citing specific examples and figures to support response Identifies strengths and weaknesses for each firm based on the financial ratio calculations, but response lacks clarity or is missing elements, or specific examples and figures are not relevant or are nonexistent Does not identify strengths and weaknesses for each firm based on financial ratio calculations 18 Articulation of Response Submission has no major errors related to citations, grammar, spelling, syntax, or organization Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas 10 Total 100%

len1792085

1/2/2018 1:32:45 AM

Evaluation of the Firms: Financial Ratios: Activity Accurately calculates the activity ratios for both companies, including inventory turnover ratios Calculates the activity ratios for both companies, including inventory turnover ratios, but calculations contain inaccuracies Does not calculate the activity ratios for both companies 18 Evaluation of the Firms: Financial Ratios: Debt Ratio Accurately calculates the debt ratio for both companies Calculates the debt ratio for both companies, but calculations contain inaccuracies Does not calculate the debt ratio for both companies 18 Evaluation of the Firms: Financial Ratios: Profitability Accurately calculates the profitability and market ratios for both companies Calculates the profitability and market ratios for both companies, but calculations contain inaccuracies Does not calculate the profitability and market ratios for both companies 18

len1792085

1/2/2018 1:32:28 AM

As you work on this milestone, consider the recommendations you will make in your final project submission to improve the weaknesses you identified in each firm. Be sure to incorporate instructor feedback in your final project, which is due in Module Nine. Rubric Guidelines for Submission: Milestone Three should be a 2- to 3-page Microsoft Word document, double-spaced, using 12-point Times New Roman font, one- inch margins, and APA formatting for citations. Critical Elements Proficient (100%) Needs Improvement (75%) Not Evident (0%) Value Evaluation of the Firms: Liquidity Evaluates both companies’ liquidity, citing specific examples and figures to support the evaluation Evaluates both companies’ liquidity, but evaluation is illogical or contains inaccuracies, or specific examples and figures are not appropriate or are nonexistent Does not evaluate both companies‘ liquidity 18

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