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Accounts receivables 1. Horizontal Analysis Gross accounts receivables increased in 2015 by 14. Net accounts receivables increased in the fiscal.

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  1. Accounts receivables
  2. Horizontal Analysis

Gross accounts receivables increased in 2015 by 14.44%. Net accounts receivables increased in the fiscal year ending 2015 by $88 million. This represents an increase by 13.95% on net accounts receivables. Allowance for doubtful debts increased in 2015 by 6.12%. This implies that more goods were sold on credit in the fiscal year ending September 27, 2015 than in the previous fiscal year. This also implies that the company’s risk increased as the number of debtor’s increases.

  • Vertical Analysis

Using assets total as the baseline for analysis on accounts receivable for Starbucks, there was a slight decline in gross accounts receivable from 5.93% in 2014 to 5.86% in 2015. Allowance for doubtful debts increased by 0.03% in 2015. Net accounts receivables slightly dropped in 2015 relative to that of 2014 by 0.09%. This represents negligible change in accounts receivable for Starbucks.     

  • Asset Acquisition, Depreciation, and Amortization:
  • Horizontal Analysis

Starbucks’ Gross fixed assets increased in the fiscal year ending September 2015, by 12.36%. Accumulated depreciation also increased by 9.72%. Net fixed assets reported in 2015 increased by 16.17% as well. It means that the company expanded its investment in the fiscal year ending September 27, 2015 by 12.36%.

  • Vertical Analysis

Using the total assets as a baseline, gross fixed assets are 77.47% of total assets in 2015, which represents a drop relative to that of 2014 (79.80%). Accumulated depreciation of fixed assets dropped from 47.08% in the fiscal year ending 2014 to 44.62% in 2015. Net fixed assets on the other hand increased from 32.73% in 2014 to 32.85% in 2015.

  • Debt financing
  • Horizontal Analysis

Starbucks’ debt financing increased in the fiscal year ending 2015 by 14.65% from that of 2014. This mean that the firm is riskier that it was in 2014 due to additional debt because of the commitment to service debt has increased.

  • Vertical Analysis

Here, we will express the amount of debt financing as a percentage of total assets. Debt financing dropped from 19.05% in the fiscal year ending 2014 to 18.87% in the fiscal year ending 2015. This drop represents -0.18%. The reduction in debt is negligible.

 
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