Answer:
Spanish King Philip II was outraged that Queen Elizabeth would not punish Sir Francis Drake and other English lubbers for pillaging Spanish ships. Philip was a devout Catholic. He saw it as his duty to conquer and invade England in order to reclaim the nation for the Church of Rome.
Spain incurred huge debt while constructing ships and recruiting sailors for the armada. The loss of the majority of this investment was devastating. England gained naval prestige as a result, making it more committed to become Europe's leading naval force. With Dutch shallow water barges preventing Parma's army from embarking, I don't believe a Spanish invasion of England would have been possible otherwise, but the loss of such a big fleet harmed the Spanish situation and weakened their grip in the Netherlands. The English won the combat portion by obtaining the weather gauge, which allowed them to calculate the time of the battle. They then launched long-range cannons against the Spanish ships, which the Spanish had not invested in. Ammunition was an issue for both sides, but the English could readily reload, so they hounded the Spanish, exhausting their supplies before attacking the grounded Spanish fleet with fireships. In order to get away from these ships, the Spaniards cut their anchors, but this meant they had no anchors to use as they withdrew across the entire British Isles. With their repair supplies already exhausted from mending cannon holes, they were a sitting duck when the storms arrived.
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