Discuss Starbucks' long-term solvency using (1) various debt ratios, (2) interest coverage ratios, and (3) operating cash flow to total liabilities. Be sure to calculate these for each year 2017 & 2018.

Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions

1 2 Months Ended

Sep. 30, 2018 Oct. 01, 2017 Oct. 02, 2016

Net Revenues:

Revenues $ 24,719.5 $ 22,386.8 $ 21,315.9

Cost of sales including occupancy costs 10,174.5 9,034.3 8,509

Store operating expenses 7,193.2 6,493.3 6,064.3

Other operating expenses 539.3 500.3 499.2

Depreciation and amortization expenses 1,247 1,011.4 980.8

General and administrative expenses 1,759 1,450.7 1,408.9

Restructuring Charges 224.4 153.5 0

Total operating expenses 21,137.4 18,643.5 17,462.2

Income from equity investees 301.2 391.4 318.2

Operating income 3,883.3 4,134.7 4,171.9

Gain resulting from acquisition of joint venture 1,376.4 0 0

Gain (Loss) on Disposition of Business 499.2 93.5 5.4

Interest income and other, net 191.4 181.8 102.6

Interest expense (170.3) (92.5) (81.3)

Earnings before income taxes 5,780 4,317.5 4,198.6

Income Tax Expense (Benefit) 1,262 1,432.6 1,379.7

Net earnings including noncontrolling interests 4,518 2,884.9 2,818.9

Net earnings/(loss) attributable to noncontrolling interests (0.3) 0.2 1.2

Net earnings attributable to Starbucks $ 4,518.3 $ 2,884.7 $ 2,817.7

Earnings Per Share, Basic $ 3.27 $ 1.99 $ 1.91

Earnings Per Share, Diluted $ 3.24 $ 1.97 $ 1.90

Weighted average shares outstanding:

Basic 1,382.7 1,449.5 1,471.6

Diluted 1,394.6 1,461.5 1,486.7

HistoricalMarket Date (all Fridays) 9/28/2018 9/29/2017 9/30/2016

Historical Market Price 56.84 53.71 54.14

CSHO 1,309.10 1,431.60

Market Value of Equity 74,409.24 76,891.24