TASK 3: ANALYZE THE RESULTS
How has the mix of assets changed over the-year period? What changes did you observe in the proportions of liability and equity? What are likely explanations for those changes?
How has the revenue mix of Starbucks changed over the three-year period? Relate these changes to Starbucks' business strategy.
Are there any noteworthy changes in the nature of expenses recorded in the income statement? EXHIBIT 2 Starbucks Corporation Consolidated Balance Sheets (amounts in millions) Data from Edgar Database (SEC) Percentage Change Balance Sheet Balance Sheet Sep, 30 Sep, 29 Sep, 27 Oct, 3 Sep, 29 Sep, 27 Oct, 3 Sep, 27 Oct, 3 2018 2019 2020 2021 2019 2020 2021 2020 2021 Assets Current assets: 14.8% 20.8% 61.9% 48.4% Cash and cash equivalents $ 8,758.30 $ 2,686.60 $ 4.350.20 $ 6,455.70 14.0% Short-term investments 181.50 70.50 281.20 182 20 0.4% 1.0% 0.5% 298.9% -42.3% Accounts receivable, net 603.10 879.20 883.40 940.00 4.6% 3.0% 3.09 0.5% 6.4% 1.400.50 1.529.40 1.551.40 7.803.90 8.0% 5.3% 5.1% 1.4% 3.4% Inventories 1,462.80 488.20 739.50 594.60 2.5% 2.5% 1.9% 51.5% 19.6% Prepaid expenses and other current assets Deferred income taxes.net $ 12,404.2 5 5.653.0 $ 7.806.4 $ 9,756.4 29.4% 28.0% 31.1% 38.1% 25.0% Total current assets Long-term investments - available-for-sale securities 267.70 220.00 206.10 281.70 1.1% 0.7% 0.9% -6.3% 36.7% 2.1% 1.8% 0.9% 20.9% -43.9% Equity and cost investments 334.70 306.00 478.70 268.50 20.3% -3.0% 2.1% Property. plant, and equipment, net 5,920.10 8.431.70 6.241.40 6,389.50 33.5% 21.2% 8.134.10 8,238.00 0.0% 27.7% 26.2% 1.3% Operating Lease. Right of Use 8.1% 6.0% 1.4% 4.7% Deferred income taxes, net 134.70 1,765.80 1.780.20 1.874.80 9.2% 412.20 479.60 568.60 578.50 2.5% 1.9% 1.8% 18.6% 1.79 Other assets Other intangible assets 1,042.20 781.80 552.10 349.90 4.1% 1.9% 1.1% 29.4% 36.6% Goodwi 3.541.60 3.490.80 3.597.20 3.677.30 18.25 12.2% 11.7% 3.0% 2.2% 68.9% 59.0% 0.3% Total non-current assets $ 11,862.2 $ 13.565.7 $ 21,568.1 $21,838 20 70.6% 73.4% $ 24,156.4 $ 19 210.6 $ 29,374.5 $31,392.60 100.0% 100.0% 100.0% 52 8% 5.9% Total Assets Liabilities and Shareholders' Equity Current liabilities: 907.20 $ 1,211.60 6.19% 3.40% 3.86% -16.1% 21.4% Accounts payable $ 1,179.30 $ 1.180.70 $ -23.2% 47.9% Accrued liabilities (including compensation & occupancy) 2.208.40 2.418.30 1856.7 2,745.50 12.58% 6.32% 8.75% 213.70 1.201.70 98.20 348.00 8.72% 0.335 1.11% -92.4% 254.4% Income taxes payable 1.248.80 1,251.30 0.00% 4.25% 3.99% 0.2% Deferred revenue 1.642.90 1.269.00 1.456.50 1,596.10 8.80% 4.869 5.08% 14.8% 9.67% 0.00% 1.40% 0.00% 100.0% Short-term Debt 438.80 340.9 1,249 8 998.90 0.00% 4.26% 3.18% 20.1% Current portion of long-term debt Total current liabilities $ 5,684.2 5 6.168.7 5 7.346.8 5 8, 151.4 32.10% 25.01% 25.97% 19.1% 11.0% 9,020.20 11.167.00 $ 14.659.80 58.10% 43.38% 31.3%% -7.1% Long-term debt 13,616.90 40.91% $ 7 661.00 7,738.DO 0.00% 26.08% 24.65% 1.0% Operating Lease Liability Other long term liabilities 8,208.2 8.114.0 $ 7.505.80 7,200.80 42.22% 25.55% 22.04% -7.5% 4.1% $ 22,080.6 $ 25.450.6 $ 37,1732 $ 36,707.1 132 42% 126.55% 118.93% 46.1% 1.3% Total liabilities Shareholders' equity. 0.0% 1.30 1.20 1.20 1.20 0.01% 0.00% 0.00% 0.0% Common Stock Additional paid-in capital 41.10 41.10 373.80 846.10 0.21% 1.27% 2.70% 809.7% 126.3%% 1.457.40 (7.815.60) (8,315.70) 30.03% 35.4% -19.2% Retained earnings (5.771.20) -26.61% -20.12% Accumulated other comprehensive income (330.3) (503.3) (364.60) 147 20 -2.62% -1.24% -27.6% 140.4% $ 1.160.5 $ (8.232.2) $ (7,805.1) $ (5,321.2) 32.43% -28.57% -16.95% 25.2% 31.8% Total shareholders' equity 6.30 1.20 5.70 8.70 0.01% 0.02% 1.02%% 375.0% 17.5% Noncontrolling interests $ 1,175.8 5 (8 231.0) $ (7.790.4) 5 (5,314.5) -32.42% 28.55% -16.93% 25.2% 31.9% Total equity Total Liabilities and Shareholders' Equity $ 24, 158.4 $ 19 210.6 $ 29.3738 $ 31,392.6 100 00% 100100 100.00%% 52 8% 6.9%EXHIBIT 1 Starbucks Corporation Consolidated Statements of Earnings [amounts in millions) Percentage Change Income Statement Income Statement Sep, 30 Sep, 29 Sep, 27 Oct, 3 Sep, 29 Sep, 27 Oct, 3 Sep, 27 Oct, 3 Fiscal Year Ended 2018 2019 2020 2021 2019 2020 2021 2020 2021 Net revenues: Company-operated stores $ 10,620.3 $21.544.4 $10,164.6 $ 24,607.00 31.27% 81.40% 84.67% -11.0% 28.4% Licensed stores 2.852.2 2.875.0 $2,327.1 2,683.60 10.85% 9.80% 9.23% 19.1% 15.3% CPG, foodservice and other 2,377.0 2.080.2 $2,026.3 1,770.00 7.88% 8.62% 8.09% 3.0% 12.6% Total net revenues $ 24,719.5 $ 26.508.6 $ 23.5180 $ 29,060.6 100.00% 100.00% 100.00% -11.3% 23.6% Cost of sales including occupancy costs $ 10,174.5 $ 8.526.9 $ 7.694.8 8,738.70 32.17% 32.72%% 30.07% -9.8% 13.6%% 10.493.6 10,764.0 39.59% 41.06% 10.8% Store operating expenses 7.183.2 11,930.90 45.77%% 2.6% 530.3 371.0 430.3 359.50 Other operating expenses 1.40% 1.83% 1.24% 16.0% -16.5% Depreciation and amortization expenses 1,247.0 1.377.3 1,431.3 1.441.70 5.20% 6.09% 4.96% 3.9% 0.7% General and administrative expenses 1,750.0 1 824.1 1,680 1.932 60 6.88% 7.14% 8.65% -7.9% 15.1% Restructuring and impairments 224.4 135.8 279 170.40 0.51% 1.10% 0.59% 105.2% 38.9% Total operating expenses $ 21,137.4 $ 22 728.7 $ 22 278.8 $ 24.573.8 85.74% 94.73%% 84.56% -2.0% 10.3% Gain on sale of properties $ $ Income from equity investees 301.20 $ 208.00 322.50 385.30 1.12% 1.37% 1.33% 8.2% 19.5%% Operating income (loss) $ 3,883.3 $ 4.077.9 $ 1,5617 $ 4,872.1 15.38% 6.64% 16.77% -61.7% 212.0% Gain resulting from acquisition of joint venture $ 1,376.4 0.00% 0.00% 0.00% Loss on extinguishment of debt 490.2 622.8 864.50 2.35% 0.00% 2.97% -100.0% Interest income and other, net 191.4 96.5 30.7 90.10 0.38% 0.17% 0.31% -58.9% 127.0% 32 0% 7.5% Interest expense (170.3) (331.0 (437.0) (489 80) -1.25% -1.88% -1.62% Earnings (loss) before income taxes $ 5,780.0 $ 4,466.2 $ 1,164.4 $ 5,356.9 16.85% 4.95% 18.43% -73.9% 360.1% 1,262.0 871.8 239.7 1,156.60 3.20 1.02% 3.98% -72.5 382.5% Income taxes (benefit) Net earnings including non-controlling interests $ 4,518.0 $ 3.504.6 $ 024.7 $ 4,200.3 13.56% 3.93% 14.45% -74.3% 354.2%% Net earnings (loss) attributable to noncontrolling interests (0.3) (4.6) 3.6) 1.0 -0.02% -0.02 0.00% -21.7% -127.8% Net earnings attributable to Starbucks 5 4,518.3 $ 3.509.2 $ 028.3 $ 4.199.3 13.58% 8.05% 14.45% -74.2% 352.4% Earnings per share - basic 3.27 5 2.85 $ 0.79 5 3.57 0.01% 0.00% 0.01% -73.2% 351.9% 3.24 2.02 0.79 3.54 0.01% 0.00% -72.9% Earnings per share - diluted 0.01% 348.1% Weighted average shares outstanding Basic 1,382.7 1.221.2 1,172 8 1.177.60 4.81% 4.90% 4.05% -4.0% 0.4% 1,185.50 Diluted 1,304.6 1 233.2 1,181.8 4.85% 5.03% 4.08% -4.2% 0.3% 9.5% Cash dividends declared per share S 1.32 1.49 1.68 1 84 0.01% 0.01% 0.01% 12 8% September 30 stock price (rounded to nearest $) 57 110 0.33% 0.36% 0.38% -3.3% 28.6%
