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Using the Starbucks financial statements provided on Blackboard, calculate and interpret the days to sell and gross profit ratios STARBUCKS CORP 10-K Income Statement in
Using the Starbucks financial statements provided on Blackboard, calculate and interpret the days to sell and gross profit ratios
STARBUCKS CORP | ||||
10-K | ||||
Income Statement | ||||
in millions of dollars, except for per share figures | ||||
Fiscal Year Ended | 10/1/2017 | 10/2/2016 | 9/27/2015 | 9/28/2014 |
Net revenues: | ||||
Company-operated stores | $17,650.7 | $16,844.1 | $15,197.3 | $12,977.9 |
Licensed stores | 2,355.0 | 2,154.2 | 1,861.9 | 1,588.6 |
CPG, food service and other | 2,381.1 | 2,317.6 | 2,103.5 | 1,881.3 |
Total net revenues | $22,386.8 | $21,315.9 | $19,162.7 | $16,447.8 |
Cost of sales including occupancy costs | 9,038.2 | 8,511.1 | 7,787.5 | 6,858.8 |
Store operating expenses | 6,493.3 | 6,064.3 | 5,411.1 | 4,638.2 |
Other operating expenses | 553.8 | 545.4 | 522.4 | 457.3 |
Depreciation and amortization expenses | 1,011.4 | 980.8 | 893.9 | 709.6 |
General and administrative expenses | 1,393.3 | 1,360.6 | 1,196.7 | 991.3 |
Litigation charge (credit) | 0.0 | 0.0 | 0.0 | (20.2) |
Restructuring & impairments | 153.5 | 0.0 | 0.0 | 0.0 |
Total operating expenses | 18,643.5 | 17,462.2 | 15,811.6 | 13,635.0 |
Income from equity investees | 391.4 | 318.2 | 249.9 | 268.3 |
Operating income | $4,134.7 | $4,171.9 | $3,601.0 | $3,081.1 |
Gain from the acquisition of joint venture | 0.0 | 0.0 | 390.6 | 0.0 |
Loss on extinguishment of debt | 0.0 | 0.0 | (61.1) | 0.0 |
Interest income and other, net | 275.3 | 108.0 | 43.0 | 142.7 |
Interest expense | (92.5) | (81.3) | (70.5) | (64.1) |
Earnings before income taxes | $4,317.5 | $4,198.6 | $3,903.0 | $3,159.7 |
Income taxes (benefit) | 1,432.6 | 1,379.7 | 1,143.7 | 1,092.0 |
Net earnings including noncontrolling earnings | $2,884.9 | $2,818.9 | $2,759.3 | $2,067.7 |
Net earnings (loss) attributable to noncontrolling interests | 0.2 | 1.2 | 1.9 | (0.4) |
Net earnings attributable to Starbucks | $2,884.7 | $2,817.7 | $2,757.4 | $2,068.1 |
Earnings per share - basic | $1.99 | $1.91 | $1.84 | $1.37 |
Earnings per share - diluted | $1.97 | $1.90 | $1.82 | $1.35 |
Weighted average shares outstanding: | ||||
Basic (adjusted for split) | 1,449.5 | 1,471.6 | 1,495.9 | 1,506.3 |
Diluted (adjusted for split) | 1,461.5 | 1,486.7 | 1,513.4 | 1,526.3 |
Cash dividends declared per share | $1.05 | $0.85 | $0.68 | $0.55 |
STARBUCKS CORP | ||||
10-K | ||||
Balance Sheet | ||||
in millions of dollars | ||||
As of | 10/1/2017 | 10/2/2016 | 9/27/2015 | 9/28/2014 |
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $2,462.3 | $2,128.8 | $1,530.1 | $1,708.4 |
Short-term investments | 228.6 | 134.4 | 81.3 | 135.4 |
Accounts receivable, net | 870.4 | 768.8 | 719.0 | 631.0 |
Inventories | 1,364.0 | 1,378.5 | 1,306.4 | 1,090.9 |
Prepaid expenses and other current assets | 358.1 | 347.4 | 334.2 | 285.6 |
Total current assets | $5,283.4 | $4,757.9 | $3,971.0 | $3,851.3 |
Long-term investments | 542.3 | 1,141.7 | 312.5 | 318.4 |
Equity and cost investments | 481.6 | 354.5 | 352.0 | 514.9 |
Property, plant and equipment, net | 4,919.5 | 4,533.8 | 4,088.3 | 3,519.0 |
Deferred income taxes, net | 795.4 | 885.4 | 1,180.8 | 1,220.7 |
Other long-term assets | 362.8 | 403.3 | 415.9 | 198.9 |
Other intangible assets | 441.4 | 516.3 | 520.4 | 273.5 |
Goodwill | 1,539.2 | 1,719.6 | 1,575.4 | 856.2 |
TOTAL ASSETS | $14,365.6 | $14,312.5 | $12,416.3 | $10,752.9 |
LIABILITIES AND SHAREHOLDERS EQUITY | ||||
Current liabilities: | ||||
Accounts payable | $782.5 | $730.6 | $684.2 | $533.7 |
Accrued liabilities | 1,934.5 | 1,999.1 | 1,755.3 | 1,514.4 |
Insurance reserves | 215.2 | 246.0 | 224.8 | 196.1 |
Stored value card liability | 1,288.5 | 1,171.2 | 983.8 | 794.5 |
Current portion of long-term debt | 0.0 | 399.9 | 0.0 | 0.0 |
Total current liabilities | $4,220.7 | $4,546.8 | $3,648.1 | $3,038.7 |
Long-term debt | 3,932.6 | 3,185.3 | 2,347.5 | 2,048.3 |
Other long-term liabilities | 755.3 | 689.7 | 600.9 | 392.2 |
Total liabilities | $8,908.6 | $8,421.8 | $6,596.5 | $5,479.2 |
Shareholders equity: | ||||
Common stock ($0.001 par value) | 1.4 | 1.5 | 1.5 | 0.7 |
Additional paid-in capital | 41.1 | 41.1 | 41.1 | 39.4 |
Retained earnings | 5,563.2 | 5,949.8 | 5,974.8 | 5,206.6 |
Accumulated other comprehensive income/(loss) | (155.6) | (108.4) | (199.4) | 25.3 |
Total shareholders equity | 5,450.1 | 5,884.0 | 5,818.0 | 5,272.0 |
Noncontrolling interests | 6.9 | 6.7 | 1.8 | 1.7 |
Total equity | 5,457.0 | 5,890.7 | 5,819.8 | 5,273.7 |
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY | $14,365.6 | $14,312.5 | $12,416.3 | $10,752.9 |
STARBUCKS CORP | ||||
10-K | ||||
Cash Flows | ||||
in millions of dollars | ||||
Fiscal Year Ended | 10/1/2017 | 10/2/2016 | 9/27/2015 | 9/28/2014 |
OPERATING ACTIVITIES: | ||||
Net earnings including noncontrolling interests | $2,884.9 | $2,818.9 | $2,759.3 | $2,067.7 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
Depreciation and amortization | 1,067.1 | 1,030.1 | 933.8 | 748.4 |
Deferred income taxes, net | 95.1 | 265.7 | 21.2 | 10.2 |
Income earned from equity method investees | (310.2) | (250.2) | (190.2) | (182.7) |
Distributions received from equity method investees | 186.6 | 223.3 | 148.2 | 139.2 |
Gain resulting from acquisition/sale of equity in joint ventures & certain retail operations | (93.5) | (6.1) | (394.3) | (70.2) |
Loss on extinguishment of debt | 0.0 | 0.0 | 61.1 | 0.0 |
Stock-based compensation | 176.0 | 218.1 | 209.8 | 183.2 |
Excess tax benefit on share-based awards | (77.5) | (122.8) | (132.4) | (114.4) |
Goodwill impairment | 87.2 | |||
Other | 68.9 | 45.1 | 53.8 | 36.2 |
Cash provided/(used) by changes in operating assets and liabilities: | ||||
Accounts receivable | (96.8) | (55.6) | (82.8) | (79.7) |
Inventories | 14.0 | (67.5) | (207.9) | 14.3 |
Accounts payable | 46.4 | 46.9 | 137.7 | 60.4 |
Accrued litigation charge | 0.0 | 0.0 | 0.0 | (2,763.9) |
Stored value card liability | 130.8 | 180.4 | 170.3 | 140.8 |
Other operating assets and liabilities | (4.7) | 248.8 | 261.5 | 418.3 |
Net cash provided by operating activities | $4,174.3 | $4,575.1 | $3,749.1 | $607.8 |
INVESTING ACTIVITIES: | ||||
Purchase of investments | (674.4) | (1,585.7) | (567.4) | (1,652.5) |
Sales of investments | 1,054.5 | 680.7 | 600.6 | 1,454.8 |
Maturity and calls of investments | 149.6 | 27.9 | 18.8 | 456.1 |
Acquisitions, net of cash acquired | 0.0 | 0.0 | (284.3) | 0.0 |
Additions to property, plant and equipment | (1,519.4) | (1,440.3) | (1,303.7) | (1,160.9) |
Cash proceeds from sale of equity in joint ventures | 85.4 | 69.6 | 8.9 | 103.9 |
Other | 54.3 | 24.9 | 6.8 | (19.1) |
Net cash used by investing activities | ($850.0) | ($2,222.9) | ($1,520.3) | ($817.7) |
FINANCING ACTIVITIES: | ||||
Proceeds from issuance of long-tem debt | 750.2 | 1,254.5 | 848.5 | 748.5 |
Principal payments on long-term debt | (400.0) | 0.0 | (610.1) | 0.0 |
Cash used for purchase of noncontrolling interest | 0.0 | 0.0 | (360.8) | 0.0 |
Proceeds from issuance of common stock | 150.8 | 160.7 | 191.8 | 139.7 |
Excess tax benefit from exercise of stock options | 77.5 | 122.8 | 132.4 | 114.4 |
Cash dividends paid | (1,450.4) | (1,178.0) | (928.6) | (783.1) |
Repurchase of common stock | (2,042.5) | (1,995.6) | (1,436.1) | (758.6) |
Minimum tax withholdings on share-based awards | (82.8) | (106.0) | (75.5) | (77.3) |
Other | (4.4) | (8.4) | (18.1) | (6.9) |
Net cash used by financing activities | ($3,001.6) | ($1,750.0) | ($2,256.5) | ($623.3) |
Effect of exchange rate changes on cash and cash equivalents | 10.8 | (3.5) | (150.6) | (34.1) |
Net increase/(decrease) in cash and cash equivalents | $333.5 | $598.7 | ($178.3) | ($867.3) |
CASH AND CASH EQUIVALENTS: | ||||
Beginning of period | 2,128.8 | 1,530.1 | 1,708.4 | 2,575.7 |
End of the period | $2,462.3 | $2,128.8 | $1,530.1 | $1,708.4 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||
Cash paid during the period for: | ||||
Interest, net of capitalized interest | $96.6 | $74.7 | $69.5 | $56.2 |
Income taxes, net of refunds | $1,389.1 | $878.7 | $1,072.2 | $766.3 |
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