In this analysis you should take a look at the cash flow statement of Starbucks.

Question

In this analysis you should take a look at the cash flow statement of Starbucks. Break down the three components-operations, investment, and financing- and draw some conclusions about the way that the business is generating and using cash: Does the business have strong cash flow, and, if so, why? What are the primary uses of cash and what is the logic behind them? How valid is the policy adopted by many companies of aggressively using cash to buy back stock or pay dividends? Would the company be able to make more effective use of its cash reserves -if it has them; if not, how can it improve its cash position? . . .

Explanation / Answer

PART 1

Yes, company have positive cashflows, reason for the same being

PART 2

Primary uses of cash:

PART C

4 reasons why company opt to park their excess cash in dividends or buy back are:

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