Part A Integrative case 1.1 introduced the industry economics of coffee shops and the business strategy of Starbucks to compete in this industry. Exhibit 1.26 presents balance sheets for Starbucks for the years ending 2009 - 2012. Exhibit 1.27 presents its income statements and Exhibit 1.28 presents the statement of cash flows for the same years. Exhibit 1.29 presents common-size balance sheets and Exhibit 1.30 presents common-size income statements for Starbucks. Before beginning preparation of Integrative Case 4.1, we recommend that you review Integrative Case 1.1 in Chapter 1. Part A of Integrative Case 4.1 analyzes changes in the profitability of Starbucks.

B. What are the most important reasons for Starbucks' ROA fluctuation during the three-year period? Analyze the financial ratios to the maximum depth possible with the information given. Using the nomenclature from the schematic in Exhibit 4.21 (page 298) Exhibit 4.44 (Page 320) provides information for analyzing profitability at Level 1, Level 2, and Level 3. Exhibit 4.44 presents additional information for Starbucks at a business segment level to permit analysis at Level 4. Differences between the sum of segment expenses and total expenses reflect corporate-level expenses not allocated to the individual segments. Additionally, if necessary, access Starbuck's annual report or form 10-k, which you should be able to access at the company's investor relations website.

C.c. What are the most important reasons for Starbucks ROCE fluctuation during the three-year period?