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.