Use cost of sales including occupancy costs for numerator


Profit Margin for ROA

Assets Turnover

Return on Assets

Profit Margin for ROCE

Capital Structure Leverage

Return on Common Shareholders’ Equity

Cost of Sales/Operating Revenues

Stores Operating Expenses/Operating Revenues

Other Operating Expenses/Operating Revenues

Depreciation and Amortization Expenses/Operating Revenues

General and Administrative Expense/Operating Revenues

Restructuring Charge/Operating Revenues

Income from Equity Investees/Operating Revenues

Interest Revenue/Operating Revenues

Income Tax Expense (excluding tax effects of interest expense)/Operating Revenues

Accounts Receivable Turnover

Inventory Turnover

Fixed Asset Turnover

Using the financial statement data in Exhibits 1.26 and 1.27, compute the values of the following 18 ratios for fiscal 2012 based on an income tax rate of 35%. For accounts receivable turnover, use only specialty revenues for the numerator, because the accounts receivable are primarily related to licensing and food service operations, not the retail operations. Use cost of sales, including occupancy costs for the numerator of the inventory turnover because Starbucks does not disclose separately the cost of products sold (the appropriate numerator) and occupancy costs.

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Financial Management: Use cost of sales including occupancy costs for numerator
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