Question

Calculate the following financial ratios for fiscal year 2018 only using the "Consolidated Statements of Earn" and "Consolidated Balance Sheets" worksheets in Starbucks 2017 and 2018 Annual Financial Statements: Current Ratio, Cash Ratio, Inventory Turnover, Days Sales in Inventory, Long Term Debt Ratio, Times Interest Earned, Gross Profit Margin, Net Profit Margin, Return on Equity, Return on Assets.

12 Months Ended Oct. 01, 2017 Sep. 30, 2018 Oct. 02, 2016 $ 22,386.8 9,034,3 6,493.3 500.3 1,011.4 1,450.7 153.5 18,643.5 $ 21,315.9 8,509 6,064.3 499.2 980.8 1,408.9 0 17,462.2 391.4 318.2 Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions Net Revenues: Revenues Cost of sales including occupancy costs Store operating expenses Other operating expenses Depreciation and amortization expenses General and administrative expenses Restructuring Charges Total operating expenses Income from equity investees Operating income Gain resulting from acquisition of joint venture Gain (Loss) on Disposition of Business Interest income and other, net Interest expense Earnings before income taxes Income Tax Expense (Benefit) Net earnings including noncontrolling interests Net earnings/(loss) attributable to noncontrolling interests Net earnings attributable to Starbucks Earnings Per Share, Basic Earnings Per Share, Diluted Weighted average shares outstanding: Basic Diluted $ 24,719.5 10,174.5 7,193.2 539.3 1,247 1,759 224.4 21,137.4 301.2 3,883.3 1,376.4 499.2 191.4 (170.3) 5,780 1,262 4,518 (0.3) $4,518.3 $ 3.27 $ 3.24 4,134.7 0 4,171.9 0 5.4 93.5 181.8 (92.5) 4,317.5 1,432.6 2,884.9 0.2 $ 2,884.7 $ 1.99 $ 1.97 102.6 (81.3) 4,198.6 1,379.7 2,818.9 1.2 $ 2,817.7 $ 1.91 $ 1.90 1,382.7 1,449.5 1,461.5 1,471.6 1,486.7 1,394.6

Answer 1

Current ratio =current asset/current liability =12494.2/5684.2=2.198

Cash ratio= (cash & cash equivalents)/current liability =8756.3/5684.2=1.54

Inventory turnover= cogs/avg inventory =10174.5/[(1400.5+1364)/2]=7.36

Days sales in inventory =365/inventory turnover=49.59 days

Long term debt ratio= long term debt /assets =9090.2/22980.6 =.395=39.55%

Time interest earned=EBIT/int expense =(5780+170.3)/170.3 =34.94

Gross profit margin=gross income/sales = (24719.5-10174.5)/24719.5=58.8%

Net profit margin=net income/sales=4518.3/24719.5 =18.27%

ROE=net income/equity=4518.3/(1175.8-6.3) =3.86

ROA= net income/total assets =4518.3/24156.4 =18.7%