For these questions, you will need Starbucks 2012 financial statements. Round to
ID: 2654340 • Letter: F
Question
For these questions, you will need Starbucks 2012 financial statements. Round to 2 decimals
Link for financial statements:
http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-reportsannual
or search 2012 financial statement starbucks
QUESTIONS
1. Calculate the free cash flow for all
2. Calculate Return on Assets
3. Calculate Return on Equity
4. Calculate Asset Turnover Ratio (note that Total net revenues correspond to sales)
5. Calculate the Quick ratio
6. Calculate the market to book ratio, use a price of $55.69 per share.
7. Calculate operating profit margin
8. Calculate debt to equity ratio, use total debt.
9. Calculate payout ratio
Explanation / Answer
Note 1: All the below answers are based on Starbucks FY 2012 filings which are for the fiscal year ending 30 Sep’12.
Note 2: All numbers are in million dollars, except share price, dividend per share, earnings per share are actual numbers and No. of shares is in millions
1. Free Cash Flow = Operating Cash Flow – Capital Expenditure
1,750.30 - 856.20 = 894.10
2. Return on Assets = Net Income / Total Assets
1,384.70 / 8,219.20 = 16.85%
3. Return on Equity = Net Income / Total Equity
1,384.70 / 5,114.50 = 27.07%
4. Asset turnover ratio = Total Net Sales / Total Assets
13,299.50 / 8,219.20 = 161.81%
5. Quick ratio = (Current Assets – Inventories) / Current Liabilities
(4,199.60 - 1,241.50) / 2,209.80 = 133.86%
6. Market to book ratio = Market price of a share / book value of a share
Book value = Total Equity / No. of shares outstanding =
Market to book ratio = 55.69 / 6.78 = 8.21
7. Operating profit margin = Operating Income / Total Net Sales
1,997.40 / 13,299.50 = 15.02%
8. Debt to equity ratio = Total Debt / Total Equity
549.60 / 5,114.50 = 10.75%
9. Payout ratio = Dividend per share / Earnings per share
0.72 / 1.83 = 39.34 %