Home / Street Sector / Stocks with critical Profitability Analyses: Starbucks Corporation (NASDAQ:SBUX), Regal Entertainment (NYSE:RGC)

Stocks with critical Profitability Analyses: Starbucks Corporation (NASDAQ:SBUX), Regal Entertainment (NYSE:RGC)

By tracking previous views Starbucks Corporation (NASDAQ:SBUX) also in plain sight to attract passive investors, shares in most recent trading session showed upbeat performance 1.82% after traded at $57.12. Ticker has price to earnings growth of 1.79, which is a valuation metric for determining relative trade-off among price of a stock.

Starbucks reported its most profitable year in its 24 years as a publicly traded company when it released its fiscal 2016 financial results earlier this month. The Seattle-based coffee company submitted its annual report to the Securities and Exchange Commission Friday. Here are a few interesting details plucked from the 97-page filing.

Starbucks has purchase obligations for $1.1 billion worth of green coffee. The retailer purchases green coffee beans from regions about the world and custom roasts them. Of that, $466 million is in fixed-price contracts while an estimated $641 million is under price-to-be-fixed contracts.

For trailing twelve months, SBUX attains gross profit margin of 60.10% and operating margin stands at 19.60%, that are showing consistency of trends in firm’s earnings. While to figure out more clear vision, firm’s returns on investment calculated as 29.40%; it gives answer about efficiency of different investments in different securities. The returns on assets of firm also presenting perceptible condition of profitability, it has ROA of 21.00%, the very positive ratio starts from >+15% and very negative hits to <-15%.

The firm has noticeable volatility credentials, price volatility of stock was 1.71% for a week and 2.04% for a month. The performance of firm for the quarter recorded as 0.52% and for year stands at -7.45%, while the YTD performance was -3.42%. The co attains 1.01 for Average True Range for 14 days. The stock price of SBUX is moving up from its 20 days moving average with 6.08% and isolated positively from 50 days moving average with 6.69%.

Regal Entertainment Group (NYSE:RGC) persists its position slightly strong in context of buying side, while shares price knocked up 0.72% during latest trading session.

Profitability Ratio Analysis; to measure firm’s performance and profitability, we focus on ordinary profitability ratio, RGC has gross profit margin of 61.40% for trailing twelve months these are a better detectors to find consistency or positive/negative trends in a firm’s earnings. Following in trace line, returns on investment amplify the findings, the firm’s ROI concludes as 14.90%; it gives idea for personal financial decisions, to compare a firm’s profitability or to compare the efficiency of different investments.

To make strengthen this views, the active industry firm has Quick Ratio of 0.70, which indicates firm has sufficient short-term assets to cover its immediate liabilities. Taking notice on volatility measures, price volatility of stock was 2.68% for a week and 2.72% for a month.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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