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ACT5060Spring22015AppendixAstarbucksanalysis.xlsIS
| STARBUCKS CORP | ||||
| 10-K | ||||
| Income Statement | ||||
| in millions of dollars, except for per share figures | ||||
| Fiscal Year Ended | 9/28/14 | 9/29/13 | 9/30/12 | 10/2/11 |
| Net revenues: | ||||
| Company-operated stores | $12,977.9 | $11,793.2 | $10,534.5 | $9,632.4 |
| Licensed stores | 1,588.6 | 1,360.5 | 1,210.3 | 1,007.5 |
| CPG, foodservice and other | 1,881.3 | 1,713.1 | 1,532.0 | 1,060.5 |
| Total net revenues | $16,447.8 | $14,866.8 | $13,276.8 | $11,700.4 |
| Cost of sales including occupancy costs | 6,858.8 | 6,382.3 | 5,813.3 | 4,915.5 |
| Store operating expenses | 4,638.2 | 4,286.1 | 3,918.1 | 3,594.9 |
| Other operating expenses | 457.3 | 431.8 | 407.2 | 392.8 |
| Depreciation and amortization expenses | 709.6 | 621.4 | 550.3 | 523.3 |
| General and administrative expenses | 991.3 | 937.9 | 801.2 | 749.3 |
| Litigation charge (credit) | (20.2) | 2,784.1 | 0.0 | 0.0 |
| Total operating expenses | 13,635.0 | 15,443.6 | 11,490.1 | 10,175.8 |
| Gain on sale of properties | 0.0 | 0.0 | 0.0 | 30.2 |
| Income from equity investees | 268.3 | 251.4 | 210.7 | 173.7 |
| Operating income | $3,081.1 | ($325.4) | $1,997.4 | $1,728.5 |
| Interest income and other, net | (142.7) | (123.6) | (94.4) | (115.9) |
| Interest expense | 64.1 | 28.1 | 32.7 | 33.3 |
| Earnings before income taxes | $3,159.7 | ($229.9) | $2,059.1 | $1,811.1 |
| Income taxes (benefit) | 1,092.0 | (238.7) | 674.4 | 563.1 |
| Net earnings including noncontrolling earnings | $2,067.7 | $8.8 | $1,384.7 | $1,248.0 |
| Net earnings (loss) attributable to noncontrolling interests | (0.4) | 0.5 | 0.9 | 2.3 |
| Net earnings attributable to Starbucks | $2,068.1 | $8.3 | $1,383.8 | $1,245.7 |
| Earnings per share - basic | $2.75 | $0.01 | $1.83 | $1.66 |
| Earnings per share - diluted | $2.71 | $0.01 | $1.79 | $1.62 |
| Weighted average shares outstanding: | ||||
| Basic | 753.1 | 749.3 | 754.4 | 748.3 |
| Diluted | 763.1 | 762.3 | 773.0 | 769.7 |
| Cash dividends declared per share | $1.10 | $0.89 | $0.72 | $0.56 |
BS
| STARBUCKS CORP | ||||
| 10-K | ||||
| Balance Sheet | ||||
| in millions of dollars, except for per share figures | ||||
| As of | 9/28/14 | 9/29/13 | 9/30/12 | 10/2/11 |
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | $1,708.4 | $2,575.7 | $1,188.6 | $1,148.1 |
| Short-term investments | 135.4 | 658.1 | 848.4 | 902.6 |
| Accounts receivable, net | 631.0 | 561.4 | 485.9 | 386.5 |
| Inventories | 1,090.9 | 1,111.2 | 1,241.5 | 965.8 |
| Prepaid expenses and other current assets | 285.6 | 287.7 | 196.5 | 161.5 |
| Deferred income taxes, net | 317.4 | 277.3 | 238.7 | 230.4 |
| Total current assets | $4,168.7 | $5,471.4 | $4,199.6 | $3,794.9 |
| Long-term investments available-for-sale securities | 318.4 | 58.3 | 116.0 | 107.0 |
| Equity and cost investments | 514.9 | 496.5 | 459.9 | 372.3 |
| Property, plant and equipment, net | 3,519.0 | 3,200.5 | 2,658.9 | 2,355.0 |
| Deferred income taxes, net | 903.3 | 967.0 | 97.3 | 0.0 |
| Other assets | 198.9 | 185.3 | 144.7 | 409.6 |
| Other intangible assets | 273.5 | 274.8 | 143.7 | 0.0 |
| Goodwill | 856.2 | 862.9 | 399.1 | 321.6 |
| TOTAL ASSETS | $10,752.9 | $11,516.7 | $8,219.2 | $7,360.4 |
| LIABILITIES AND SHAREHOLDERS EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | $533.7 | $491.7 | $398.1 | $540.0 |
| Accrued litigation charge | 0.0 | 2,784.1 | 0.0 | 0.0 |
| Accrued liabilities | 1,514.4 | 1,269.3 | 1,133.8 | 940.9 |
| Insurance reserves | 196.1 | 178.5 | 167.7 | 145.6 |
| Deferred revenue | 794.5 | 653.7 | 510.2 | 449.3 |
| Total current liabilities | $3,038.7 | $5,377.3 | $2,209.8 | $2,075.8 |
| Long-term debt | 2,048.3 | 1,299.4 | 549.6 | 549.5 |
| Other long-term liabilities | 392.2 | 357.7 | 345.3 | 347.8 |
| Total liabilities | $5,479.2 | $7,034.4 | $3,104.7 | $2,973.1 |
| Shareholders equity: | ||||
| Common stock ($0.001 par value) | 0.7 | 0.8 | 0.7 | 0.7 |
| Additional paid-in capital | 39.4 | 282.1 | 39.4 | 40.5 |
| Retained earnings | 5,206.6 | 4,130.3 | 5,046.2 | 4,297.4 |
| Accumulated other comprehensive income | 25.3 | 67.0 | 22.7 | 46.3 |
| Total shareholders equity | 5,272.0 | 4,480.2 | 5,109.0 | 4,384.9 |
| Noncontrolling interests | 1.7 | 2.1 | 5.5 | 2.4 |
| Total equity | 5,273.7 | 4,482.3 | 5,114.5 | 4,387.3 |
| TOTAL LIABILITIES AND SHAREHOLDERS EQUITY | $10,752.9 | $11,516.7 | $8,219.2 | $7,360.4 |
SCF
| STARBUCKS CORP | ||||
| 10-K | ||||
| Cash Flows | ||||
| in millions of dollars, except for per share figures | ||||
| Fiscal Year Ended | 9/28/14 | 9/29/13 | 9/30/12 | 10/2/11 |
| OPERATING ACTIVITIES: | ||||
| Net earnings including noncontrolling interests | $2,067.7 | $8.8 | $1,384.7 | $1,248.0 |
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||
| Depreciation and amortization | 748.4 | 655.6 | 580.6 | 550.0 |
| Litigation charge | 0.0 | 2,784.1 | 0.0 | 0.0 |
| Gain on sale of properties | 0.0 | 0.0 | 0.0 | (30.2) |
| Deferred income taxes, net | 10.2 | (1,045.9) | 61.1 | 106.2 |
| Equity in income of investees, net of distributions | (43.5) | (56.2) | (49.3) | (32.9) |
| Gain resulting from acquisition of joint ventures | (70.2) | (80.1) | 0.0 | (55.2) |
| Stock-based compensation | 183.2 | 142.3 | 153.6 | 145.2 |
| Excess tax benefit on share-based awards | (114.4) | (258.1) | (169.8) | (103.9) |
| Other | 36.2 | 23.0 | 23.6 | 33.3 |
| Cash provided/(used) by changes in operating assets and liabilities: | ||||
| Accounts receivable | (79.7) | (68.3) | (90.3) | (88.7) |
| Inventories | 14.3 | 152.5 | (273.3) | (422.3) |
| Accounts payable | 60.4 | 88.7 | (105.2) | 227.5 |
| Accrued litigation charge | (2,763.9) | 0.0 | 0.0 | 0.0 |
| Income taxes payable, net | 309.8 | 298.4 | 201.6 | 103.9 |
| Accrued liabilities and insurance reserves | 103.9 | 47.3 | (8.1) | (81.8) |
| Deferred revenue | 140.8 | 139.9 | 60.8 | 35.8 |
| Prepaid expenses, other current assets, and other assets | 4.6 | 76.3 | (19.7) | (22.5) |
| Net cash provided by operating activities | $607.8 | $2,908.3 | $1,750.3 | $1,612.4 |
| INVESTING ACTIVITIES: | ||||
| Purchase of investments | (1,652.5) | (785.9) | (1,748.6) | (966.0) |
| Sales of investments | 1,454.8 | 60.2 | 0.0 | 0.0 |
| Maturity and calls of investments | 456.1 | 980.0 | 1,796.4 | 430.0 |
| Acquisitions, net of cash acquired | 0.0 | (610.4) | (129.1) | (55.8) |
| Additions to property, plant and equipment | (1,160.9) | (1,151.2) | (856.2) | (531.9) |
| Cash proceeds from sale of equity in joint ventures | 103.9 | 108.0 | 0.0 | 0.0 |
| Other | (19.1) | (11.9) | (36.5) | 104.2 |
| Net cash used by investing activities | ($817.7) | ($1,411.2) | ($974.0) | ($1,019.5) |
| FINANCING ACTIVITIES: | ||||
| Proceeds from issuance of long-tem debt | 748.5 | 749.7 | 0.0 | 0.0 |
| Principal payments on long-term debt | 0.0 | (35.2) | 0.0 | 0.0 |
| (Payments) / Proceeds from short-term borrowings | 0.0 | 0.0 | (30.8) | 30.8 |
| Purchase of noncontrolling interest | 0.0 | 0.0 | 0.0 | (27.5) |
| Proceeds from issuance of common stock | 139.7 | 247.2 | 236.6 | 250.4 |
| Excess tax benefit from exercise of stock options | 114.4 | 258.1 | 169.8 | 103.9 |
| Cash dividends paid | (783.1) | (628.9) | (513.0) | (389.5) |
| Repurchase of common stock | (758.6) | (588.1) | (549.1) | (555.9) |
| Minimum tax withholdings on share-based awards | (77.3) | (121.4) | (58.5) | (15.0) |
| Other | (6.9) | 10.4 | (0.5) | (5.2) |
| Net cash used by financing activities | ($623.3) | ($108.2) | ($745.5) | ($608.0) |
| Effect of exchange rate changes on cash and cash equivalents | (34.1) | (1.8) | 9.7 | (0.8) |
| Net increase/(decrease) in cash and cash equivalents | ($867.3) | $1,387.1 | $40.5 | ($15.9) |
| CASH AND CASH EQUIVALENTS: | ||||
| Beginning of period | 2,575.7 | 1,188.6 | 1,148.1 | 1,164.0 |
| End of the period | $1,708.4 | $2,575.7 | $1,188.6 | $1,148.1 |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||
| Cash paid during the period for: | ||||
| Interest, net of capitalized interest | $56.2 | $34.4 | $34.4 | $34.4 |
| Income taxes, net of refunds | $766.3 | $539.1 | $416.9 | $350.1 |
IS Common
| STARBUCKS CORP | ||||
| 10-K | ||||
| Vertical Income Statement | ||||
| Fiscal Year Ended | 9/28/14 | 9/29/13 | 9/30/12 | 10/2/11 |
| Net revenues: | ||||
| Company-operated stores | 78.90% | 79.33% | 79.35% | 82.33% |
| Licensed stores | 9.66% | 9.15% | 9.12% | 8.61% |
| CPG, foodservice and other | 11.44% | 11.52% | 11.54% | 9.06% |
| Total net revenues | 100.00% | 100.00% | 100.00% | 100.00% |
| Cost of sales including occupancy costs | 41.70% | 42.93% | 43.79% | 42.01% |
| Store operating expenses | 28.20% | 28.83% | 29.51% | 30.72% |
| Other operating expenses | 2.78% | 2.90% | 3.07% | 3.36% |
| Depreciation and amortization expenses | 4.31% | 4.18% | 4.14% | 4.47% |
| General and administrative expenses | 6.03% | 6.31% | 6.03% | 6.40% |
| Litigation charge (credit) | -0.12% | 18.73% | 0.00% | 0.00% |
| Total operating expenses | 82.90% | 103.88% | 86.54% | 86.97% |
| Gain on sale of properties | 0.00% | 0.00% | 0.00% | 0.26% |
| Income from equity investees | 1.63% | 1.69% | 1.59% | 1.48% |
| Operating income | 18.73% | -2.19% | 15.04% | 14.77% |
| Interest income and other, net | -0.87% | -0.83% | -0.71% | -0.99% |
| Interest expense | 0.39% | 0.19% | 0.25% | 0.28% |
| Earnings before income taxes | 19.21% | -1.55% | 15.51% | 15.48% |
| Income taxes (benefit) | 6.64% | -1.61% | 5.08% | 4.81% |
| Net earnings including noncontrolling earnings | 12.57% | 0.06% | 10.43% | 10.67% |
| Net earnings (loss) attributable to noncontrolling interests | -0.00% | 0.00% | 0.01% | 0.02% |
| Net earnings attributable to Starbucks | 12.57% | 0.06% | 10.42% | 10.65% |
BS Common
| STARBUCKS CORP | ||||
| 10-K | ||||
| Vertical Balance Sheet | ||||
| As of | 9/28/14 | 9/29/13 | 9/30/12 | 10/2/11 |
| ASSETS | ||||
| Current assets: | ||||
| Cash and cash equivalents | 15.89% | 22.36% | 14.46% | 15.60% |
| Short-term investments | 1.26% | 5.71% | 10.32% | 12.26% |
| Accounts receivable, net | 5.87% | 4.87% | 5.91% | 5.25% |
| Inventories | 10.15% | 9.65% | 15.10% | 13.12% |
| Prepaid expenses and other current assets | 2.66% | 2.50% | 2.39% | 2.19% |
| Deferred income taxes, net | 2.95% | 2.41% | 2.90% | 3.13% |
| Total current assets | 38.77% | 47.51% | 51.09% | 51.56% |
| Long-term investments available-for-sale securities | 2.96% | 0.51% | 1.41% | 1.45% |
| Equity and cost investments | 4.79% | 4.31% | 5.60% | 5.06% |
| Property, plant and equipment, net | 32.73% | 27.79% | 32.35% | 32.00% |
| Deferred income taxes, net | 8.40% | 8.40% | 1.18% | 0.00% |
| Other assets | 1.85% | 1.61% | 1.76% | 5.56% |
| Other intangible assets | 2.54% | 2.39% | 1.75% | 0.00% |
| Goodwill | 7.96% | 7.49% | 4.86% | 4.37% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| LIABILITIES AND SHAREHOLDERS EQUITY | ||||
| Current liabilities: | ||||
| Accounts payable | 4.96% | 4.27% | 4.84% | 7.34% |
| Accrued litigation charge | 0.00% | 24.17% | 0.00% | 0.00% |
| Accrued liabilities | 14.08% | 11.02% | 13.79% | 12.78% |
| Insurance reserves | 1.82% | 1.55% | 2.04% | 1.98% |
| Deferred revenue | 7.39% | 5.68% | 6.21% | 6.10% |
| Total current liabilities | 28.26% | 46.69% | 26.89% | 28.20% |
| Long-term debt | 19.05% | 11.28% | 6.69% | 7.47% |
| Other long-term liabilities | 3.65% | 3.11% | 4.20% | 4.73% |
| Total liabilities | 50.96% | 61.08% | 37.77% | 40.39% |
| Shareholders equity: | ||||
| Common stock ($0.001 par value) | 0.01% | 0.01% | 0.01% | 0.01% |
| Additional paid-in capital | 0.37% | 2.45% | 0.48% | 0.55% |
| Retained earnings | 48.42% | 35.86% | 61.40% | 58.39% |
| Accumulated other comprehensive income | 0.24% | 0.58% | 0.28% | 0.63% |
| Total shareholders equity | 49.03% | 38.90% | 62.16% | 59.57% |
| Noncontrolling interests | 0.02% | 0.02% | 0.07% | 0.03% |
| Total equity | 49.04% | 38.92% | 62.23% | 59.61% |
| TOTAL LIABILITIES AND SHAREHOLDERS EQUITY | 100.00% | 100.00% | 100.00% | 100.00% |
short-term
| Liquidity Ratios | ||||
| Fiscal Year Ended | 9/28/14 | 9/29/13 | 9/30/12 | 10/2/11 |
| Current ratio | 1.372 | 1.017 | 1.900 | 1.828 |
| Working capital | $1,130.0 | $94.1 | $1,989.8 | $1,719.1 |
| Acid-test ratio | 0.814 | 0.706 | 1.142 | 1.174 |
| Inventory turnover (times) | 6.23 | 5.43 | 5.27 | |
| Days sales in inventory | 58.59 | 67.27 | 69.29 | |
| Accounts receivable turnover (times) | 27.59 | 28.39 | 30.44 | |
| Days sales in receivables | 13.23 | 12.86 | 11.99 | |
| Free cash flow | -$553.1 | $1,757.1 | $894.1 | $1,080.5 |
| Average inventory | $1,101.05 | $1,176.35 | $1,103.65 | |
| Average A/R | $596.20 | $523.65 | $436.20 |
long-term
| Solvency Ratios | ||||
| Fiscal Year Ended | 9/28/14 | 9/29/13 | 9/30/12 | 10/2/11 |
| Debt to equity | 0.463 | 0.370 | 0.175 | 0.205 |
| Interest coverage | 48.07 | -11.58 | 61.08 | 51.91 |
| Adjusted coverage | 47.75 | 87.50 | 61.08 | 51.91 |
| Long term liabilities | $2,440.5 | $1,657.1 | $894.9 | $897.3 |
profitability
| Profitability Ratios | ||||
| Fiscal Year Ended | 9/28/14 | 9/29/13 | 9/30/12 | 10/2/11 |
| Asset turnover | $1.48 | $1.51 | $1.70 | |
| Return on sales | 12.83% | 0.18% | 10.59% | 10.84% |
| ROS - Adjusted for litigation | 12.75% | 12.78% | 10.59% | 10.84% |
| Gross margin % | 58.30% | 57.07% | 56.21% | 57.99% |
| Return on assets | 18.95% | 0.28% | 18.05% | |
| ROA - Adjusted for litigation | 18.83% | 19.25% | 18.05% | |
| Return on equity | 42.41% | 0.17% | 29.15% | |
| ROE - Adjusted for litigation | 42.14% | 39.22% | 29.15% | |
| Average interest rate | 1.02% | 0.55% | 1.08% | |
| Average total assets | $11,134.80 | $9,867.95 | $7,789.80 | |
| Income tax rate | 34.56% | 32.75% | 32.75% | 31.09% |
| Net of tax interest expense | $41.95 | $18.90 | $21.99 | $22.95 |
| Adjusted net income | $2,110.05 | $27.20 | $1,405.79 | $1,268.65 |
| Average equity | $4,876.10 | $4,794.60 | $4,746.95 | |
| Average total liabilities | $6,256.80 | $5,069.55 | $3,038.90 | |
| Income adjusted for litigation | $2,096.83 | $1,899.44 | $1,405.79 | $1,268.65 |
| Net income adjusted for litigation | $2,054.88 | $1,880.55 | $1,383.80 | $1,245.70 |
DuPont
| DuPont Analysis of ROA | |||
| Fiscal Year Ended | 9/28/14 | 9/29/13 | 9/30/12 |
| Return on assets (calculated) | 18.95% | 0.28% | 18.05% |
| Return on sales | 12.83% | 0.18% | 10.59% |
| Asset turnover | $1.48 | $1.51 | $1.70 |
| Product | 18.95% | 0.28% | 18.05% |
| Adjusted return on assets (calculated) | 18.83% | 19.25% | 18.05% |
| Adjusted return on sales | 12.75% | 12.78% | 10.59% |
| Asset turnover | $1.48 | $1.51 | $1.70 |
| Product | 18.83% | 19.25% | 18.05% |
stock
| Stock Ratios | ||||
| Fiscal Year Ended | 9/28/14 | 9/29/13 | 9/30/12 | 10/2/11 |
| Book value per common share | $7.00 | $6.03 | $6.86 | $5.93 |
| Earnings per share (basic) | $2.75 | $0.01 | $1.83 | $1.66 |
| Earnings per share (diluted) | $2.71 | $0.01 | $1.79 | $1.62 |
| P/E Ratio | 27.68 | 7594.00 | 27.43 | 21.97 |
| Dividend yield | 1.47% | 1.17% | 1.47% | 1.57% |
| Dividend payout | 40.59% | 8900.00% | 40.22% | 34.57% |
| Adjusted Basic EPS | $2.73 | $2.51 | $1.83 | $1.66 |
| Adjusted Diluted EPS | $2.69 | $2.47 | $1.79 | $1.62 |
| Adjusted P/E Ratio | 27.86 | 30.78 | 27.43 | 21.99 |
| Adjusted dividend payout | 40.85% | 36.08% | 40.22% | 34.60% |
| Book value of equity | $5,273.7 | $4,482.3 | $5,114.5 | $4,387.3 |
| Common shares outstanding | 753.6 | 743.6 | 745.4 | 740.2 |
| Adjusted closing price | $75.01 | $75.94 | $49.10 | $35.59 |
| Dividends per share | $1.10 | $0.89 | $0.72 | $0.56 |
