Current, Debt, Return on equity and Days receivable.

Starbucks – financial ratios | Business & Finance homework help

My organization’s financial performance during the past two years has been strong. Our debt ratio has decreased from 0.7 down to 0.6% and we’ve increased our current from 2.4 up to 2.7. These increases indicate that the organization is becoming financially more secure. The return on equity of the company has increased from 19% to 25%, reflecting better returns for investors and evidence that sound decisions were made regarding capital structure and investments. Finaly, the days receivable have decreased from 33 to 30 in year 2. This shows that customers pay their bills on time.

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. In the past two years, we have increased profitability and become more efficient at collecting payment due from our customers. We are able to achieve a combination of healthy results on both sides: a healthier bottom line while increasing customer satisfaction.