Question #1

Using the Starbucks financial statements provided, calculate and interpret the long-term liabilities ratios we discussed in class. Ratios: Total Debt, Long-term Debt, Debt-to-assets, Debt-to-Equity, interest coverage (times interest earned)

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STARBUCKS CORP
10-K
Balance Sheet
in millions of dollars
As of	9/30/2018	10/1/2017	10/2/2016	9/27/2015
ASSETS
Total current assets	$12,494.2	$5,283.4	$4,757.9	$3,971.0
TOTAL ASSETS	$24,156.4	$14,365.6	$14,312.5	$12,416.3
LIABILITIES AND SHAREHOLDERS EQUITY
Total current liabilities	$5,684.2	$4,220.7	$4,546.8	$3,648.1
Long-term debt	9,090.2	3,932.6	3,185.3	2,347.5
Deferred revenue	6,775.7	4.4	0.0	0.0
Other long-term liabilities	1,430.5	750.9	689.7	600.9
Total liabilities	$22,980.6	$8,908.6	$8,421.8	$6,596.5
Total equity	1,175.8	5,457.0	5,890.7	5,819.8
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY	$24,156.4	$14,365.6	$14,312.5	$12,416.3

STARBUCKS CORP
10-K
Income Statement
in millions of dollars, except for per share figures
Fiscal Year Ended	9/30/2018	10/1/2017	10/2/2016	9/27/2015
Operating income	$3,883.3	$4,134.7	$4,171.9	$3,601.0
Gain from acquisition of joint venture	1,376.4	0.0	0.0	390.6
Net gain resulting from divestiture of certain operations	499.2	93.5	5.4	0.0
Loss on extinguishment of debt	0.0	0.0	0.0	(61.1)
Interest income and other, net	191.4	181.8	102.6	43.0
Interest expense	(170.3)	(92.5)	(81.3)	(70.5)
Net earnings attributable to Starbucks	$4,518.3	$2,884.7	$2,817.7	$2,757.4