sing the ratio analysis knowledge learnt in class yesterday, calculate $3$ ratios each for the ratio categories: Liquidity Ratios, Financial Leverage Ratios, Asset Utilization Ratios and Profitability Ratios of Starbucks using its $2022$ and $2023$ financial statement and interpret the ratio results obtained for October $2022$ and $2023.$

The Financial report of Starbucks is posted in the Assignment section of Populi. Refer to Page $42$ and $44$ of the documents for the income statement and Statement of financial position.

Note: Total Net Revenue $=$ Total Sales

Research and state the industry average for each ratio to aid your interpretation.

STARBUCKS CORPORATRR ION

CONSOLIDATED STATEMENTS OF EARNINGS

$($in millions, except per share data$)$

Fiscal Y ear Ended Oct $1,2023$ Oct $2,2022$ Oct $3,2021$

Net revenues:

Company$-$operated stores $ $29,462\mathrm{.}3$ $ $26,576\mathrm{.}1$ $ $24,607\mathrm{.}0$

Licensed stores $4,512\mathrm{.}73,655\mathrm{.}52,683\mathrm{.}6$

Other $2,000\mathrm{.}62,018\mathrm{.}71,770\mathrm{.}0$

Total net revenues $35,975\mathrm{.}632,250\mathrm{.}329,060\mathrm{.}6$

Product and distribution costs $11,409\mathrm{.}110,317\mathrm{.}48,738\mathrm{.}7$

Store operating expenses $14,720\mathrm{.}313,561\mathrm{.}811,930\mathrm{.}9$

Other operating expenses $539\mathrm{.}4461\mathrm{.}5359\mathrm{.}5$

Depreciation and amortization expenses $1,362\mathrm{.}61,447\mathrm{.}91,441\mathrm{.}7$

General and administrative expenses $2,441\mathrm{.}32,032\mathrm{.}01,932\mathrm{.}6$

Restructurt ing and impairments $21\mathrm{.}846\mathrm{.}0170\mathrm{.}4$

Total operating expenses $30,494\mathrm{.}527,866\mathrm{.}624,573\mathrm{.}8$

Income from equity investees $298\mathrm{.}4234\mathrm{.}1385\mathrm{.}3$

Gain from sale of assets $91\mathrm{.}3$

Operating income $5,870\mathrm{.}84,617\mathrm{.}84,872\mathrm{.}1$

Net gain resulting from divestiturt e of certain operations $864\mathrm{.}5$

Interest income and other, net $81\mathrm{.}297\mathrm{.}090\mathrm{.}1$

Interest expense $(550\mathrm{.}1)(482\mathrm{.}9)(469\mathrm{.}8)$

Earnings before income taxes $5,401\mathrm{.}94,231\mathrm{.}95,356\mathrm{.}9$

Income tax expense $1,277\mathrm{.}2948\mathrm{.}51,156\mathrm{.}6$

Net earnings including noncontrolling interests $4,124\mathrm{.}73,283\mathrm{.}44,200\mathrm{.}3$

Net earnings attributable to noncontrolling interests $0\mathrm{.}21\mathrm{.}81\mathrm{.}0$

Net earnings attributable to Starbucr ks $ $4,124\mathrm{.}5$ $ $3,281\mathrm{.}6$ $ $4,199\mathrm{.}3$

Earnings per share $$ basic $ $3\mathrm{.}60$ $ $2\mathrm{.}85$ $ $3\mathrm{.}57$

Earnings per share $$ diluted $ $3\mathrm{.}58$ $ $2\mathrm{.}83$ $ $3\mathrm{.}54$

Weighted average shares outstanding:

Basic $1,146\mathrm{.}81,153\mathrm{.}31,177\mathrm{.}6$

Diluted $1,151\mathrm{.}31,158\mathrm{.}51,185\mathrm{.}5$

See Notes to Consolidated Financial Statements.

Item $8.$ Financial Statements and Supplementary Data

$42$

STARBUCKS CORPORATRR ION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

$($in millions$)$s

Fiscal Y ear Ended Oct $1,2023$ Oct $2,2022$ Oct $3,2021$

Net earnings including noncontrolling interests $ $4,124\mathrm{.}7$ $ $3,283\mathrm{.}4$ $ $4,200\mathrm{.}3$

Other comprehensive income$/($loss$),$ net of tax:

Unrealized holding gains$/($losses$)$ on availabla e$-$for$-$sale debtsecurities $3\mathrm{.}3(22\mathrm{.}8)(3\mathrm{.}4)$

Tax $($expense$)/$benefitff $(0\mathrm{.}8)5\mathrm{.}60\mathrm{.}7$

Unrealized gains$/($losses$)$ on cash flow hedging instruments $(149\mathrm{.}4)259\mathrm{.}5283\mathrm{.}8$

Tax $($expense$)/$benefitff $17\mathrm{.}2(52\mathrm{.}8)(43\mathrm{.}6)$

Unrealized gains$/($losses$)$ on net investment hedging instruments $73\mathrm{.}2229\mathrm{.}063\mathrm{.}1$

Tax $($expense$)/$benefitff $(18\mathrm{.}5)(57\mathrm{.}9)(16\mathrm{.}0)$

Translation adjud stment and other $(109\mathrm{.}0)(794\mathrm{.}7)188\mathrm{.}2$

Tax $($expense$)/$benefitff $1\mathrm{.}82\mathrm{.}2$

Reclassification adjud stment for net $($gains$)/$losses realized in netearnings for availabla e$-$for$-$sale securities$,$ hedging instruments,translation adjud stment and other $(158\mathrm{.}9)(210\mathrm{.}5)41\mathrm{.}8$

Tax expense$/($benefitff $)26\mathrm{.}134\mathrm{.}2(5\mathrm{.}0)$

Other comprehensive income$/($loss$)(315\mathrm{.}0)(610\mathrm{.}4)511\mathrm{.}8$

Comprehensive income including noncontrolling interests $3,809\mathrm{.}72,673\mathrm{.}04,712\mathrm{.}1$

Comprehensive income$/($loss$)$ attributable to noncontrollinginterests $(0\mathrm{.}5)1\mathrm{.}81\mathrm{.}0$

Comprehensive income attributable to Starbucr ks $ $3,810\mathrm{.}2$ $ $2,671\mathrm{.}2$ $ $4,711\mathrm{.}1$

See Notes to Consolidated Financial Statements.

$43$