Week 2: Financial Forecast Using Excel Financial Forecasting For Target Corporation
Introduction
Target Corporation has had weak sales forecasts this year as compared to prior year. Despite this, Target Corporation is expected to outperform in next year. The purpose of this paper is to describe the financial projections of Target Corporation next year over the current balances. The paper shall specifically discuss the growth rates projected using Prof. Steven’s Model as well, explain all other assumptions, provide explanations and interpretation of the projected financial statements, as well as discuss the overall forecast and financial ratios under this model. The methodology in this analysis was basically the use of Excel financial forecasting techniques with the aid of Prof. Steven’s model of financial forecasting. Data was obtained through secondary data sources, specifically online resources. The data analysis shall be presented in table format.
Explanation of Growth Rates
Target’s growth rates for sales revenue for the current quarter had declined by 5.6% over the last quarter’s sales. Target Corporation’s revenues for the 12 month trailing period ending 30 Jul, 2016 are reported to have increased by 1.6% over the prior year’s revenues. The decline in the quarterly sales revenues since the first quarter which ended in 30 April, 2016 is a clear indication that the revenues for next year will increase slightly over the current year’s sales. It’s therefore not likely that the sales revenue for Target Corp. can increase greatly by more than 2% next year, 2017. Some analysts are even stipulating a decline of revenues but Target’s consensus panel of analysts are estimating a slight increase. It was reported that Target Corp. itself had cut its own sales forecasts after the last quarter’s results fell below the expectations. The growth rate of other revenues is expected to increase by about 1.46% similar to the current year’s estimated increase of 1.4% compared to prior year. The overall average sustained earnings growth rate for the company is however projected to increase by about 6.8% in 2017.
Explanation of All Other Assumptions
Inputs (First Page)
% of Current Balance OR Forecast If Different
Explanation of Assumptions
Cost of Sales %
70.00%
Target's current cost of sales are $50321 while the sales are $71603 for the past trailing 12 months ending July 30.
Selling/General/Administrative Expenses %
66.00%
If the SGA is less than 30% of the gross profit, the company is in less competitive industry. If SGA is close to 100%, it's operating in a very competitive industry.
Other Expenses %
11.00%
Other expenses in the 12 month trailing period ending 30 Jul, 2016 was 11% of the total gross profit.
Other Expenses%
6.80%
Income tax expense was 6.8% of the total gross profit in the 12 month trailing period ending 30 Jul, 2016
Cash %
7.00%
The cash & cash equivalents for Target Corp in the last 4 quarters ending July 30 is 7% of the total assets.
Financial analysis assignment: Analyzing the Business Strategies of Various C...Total Assignment Help
The major part of operations as discussed in this financial analysis assignment of
Woolworth's Limited is in Australia and New Zealand. The company belongs to consumer goods
industry (Woolworth's, 2019)
Quest Diagnostics held a conference call to discuss its financial results for the second quarter of 2008. The call began with introductory remarks noting some statements may be forward-looking and cautioning investors. Surya Mohapatra then stated the business performed well, with double digit revenue and earnings growth. Revenue was $1.8 billion, up 12%, and earnings per share increased 14%. Cash flow also improved. Bob Hagemann then reviewed the financial results in more detail, noting continued revenue, volume, and earnings growth. He also provided an update on cost reduction initiatives and guidance for the full year.
Running Head: FINANCIAL ANALYSIS
1
FINANCIAL ANALYSIS
7
Financial Analysis
Students Name
Institutional Affiliation
Executive summaryThis report created from the financial statements of The Coca-Cola Company (KO) provides an analysis and evaluation of the actual and the prospective liquidity, profitability and the financial stability of the company. The methods that have been used in the analysis include trend analysis, the vertical analysis and the horizontal analysis. Also we have used certain analysis such as Quick ratio, debt ratio, and the current ratios. More calculations that have been used includes the returns on the owners equity, the earning per share, net operating working capital, total operating capital, net operating capital, net operating profit after taxes, operating cash flow and free cash flow. A result from the data reveals that, all the company ratios are above the industries averages. Comparative performance is good in the area of the liquidity, credit control and inventory management.
The report finds that the tidings for the company are positive in the near future. The major areas of weakness highlighted require further investigation and immediate action by management. The recommendations that were provided include;
· Improving the average accounts receivable collection period,
· Raising/ increasing the inventory turnover and reduction of prepayments in order to have enough operating cash for the subsequent periods.
The investigation in this report also had its shortcomings that arose and are highlighted as;
The forecasted figures used are estimates that sometimes maybe arbitrate; we also cannot fully provide data on the position of other companies with the data limitation we have experienced. The monthly details would have given us more information from which we could base a proper in year trend analysis, rather than the blanket whole year analysis provided. Though we had the above mentioned strain in preparation of this report, we still great belief that the analysis provided is best suited to show the standing of the Coca-Cola Company (KO).
In the financial report below, the strengths, weakness, opportunity and threats have been highlighted as we analyze the various financial sub segments.
Identify your company, its industry, and analyze the important segments (percentage of sales or subsidiaries) of your company compared to its industry and its overall business
The Coca-Cola Company (KO) is a multinational American Company that has its headquarters at Atlanta Georgia. The company has got its branches in more than 200 countries in the world and majority of its sales is in America, amounting to 40% of the total sales. The company operates in the non alcoholic beverage industry made up of the following companies as the main rivals, Dr Pepper Snapple Group, Inc, Nestle and Pepsi Inc. the company is the best performer in market capitalization compared to competitors with a capitalization of 169.49billion, higher .
Zichun Gao Professor Karen Accounting 1AIBM FInancial Stat.docxransayo
Zichun Gao Professor Karen Accounting 1A
IBM FInancial Statement Analysis
Financial Ratios 2019 2018 Formula
Current Ratio 1.02 1.29 CA/CL
Profit Margin 12.22% 12.35% Net Income/Total Revenue
Receiveables Turnover 9.80 10.71 Revenue/Average AR
Average Collection Period 36.72 33.62 365/Receiveables Turnover
Inventory Turnover 25.11 25.36 COST/Average Inventory
Days in Inventory 14.53 14.39 365/Inventory Turnover
Debts to Asset Ratio 0.86 0.86 Total Debts/Total Assets
IBM's days in inventory is around two weeks and this means that goods in the inventory
as efficnetly distributed and that there is a consitantly good inventory control for the
company.
The company's debts to assets ratio is the same for two years and this means that the
company has less debt than asset. However, it is still a relatively poor ratio because this
might show that there are potential problems for the company to generate sufficient
revenue.
The current ratio of the company has decreased over the year, and this means that the
company has less liquid assets to cover its short term liabilities. Since the ratio is
currently approaching 1, the company might be having liquidation problem.
The profit margin for IBM is very stable and it has been about 12% for two years. The
company is performing the profit-generating ability at an average level and it is having
an average profit margin in the industry.
The receiveables turnover is good for the company while between these two years, there
is a decline. As the company is collecting its accounts receiveables around 10 times per
year, the collection is frequent.
The company has been collecting money from customers on credit sales approximately
once every month, and the company usually has fast credit collection, which means that
the risk for credit sales is relatively low.
Inventory turnover measures how many times a company sells and replaces inventory
during a year and for IBM, the number of times is stable and it is constantly around 25.
This means that the company has an efficient control of its goods in the inventory.
Free Cash Flow 11.90 11.90 CF_Operation-Capital Expenditures
Return on Assets 0.06 0.08 Net Income/Total Assets
Asset Turnover 0.51 0.65 Revenue/Assets
Figures From Financial Statement
From Income Statement pg.68
Net Income 9431 9828
Total Revenue 77147 79591
Cost 40657 42655
From Consolidated Balance Sheet pg.70
Current Assets 38420 49146
Current Liabilities 37701 38227
Accounts Receiveables 7870 7432
Inventory 1619 1682
Total Assets 152186 123382
Total Liabilities 131202 106452
From Cash Flow Overview pg.59
Net Cash From Op 14.3 15.6
Capital expenditures 2.4 3.7
The company currently has 11.9 billion dollars free cash flow for two years and this is a
relatively high level of free cash flow. With the high free cash flow, the company can
have more oportunity to expand, invest in new projects, pay dividends, or invest the
money into Resea.
Target reported third quarter earnings results that reflected sales and traffic growth but missed profit expectations due to inflationary pressures. Comparable sales increased 2.7% driven by traffic growth, but operating margin fell to 3.9% from 7.8% last year due to higher costs. In response, Target lowered its fourth quarter outlook and announced a new initiative to simplify operations and gain $2-3 billion in efficiencies over three years.
Target reported third quarter earnings results that reflected sales and traffic growth but missed profit expectations due to inflationary pressures. Comparable sales increased 2.7% driven by traffic growth, but operating margin fell to 3.9% from 7.8% last year due to higher costs. In response, Target lowered its fourth quarter guidance and announced a new enterprise initiative estimated to save $2-3 billion over three years through efficiencies.
A comprehensive evaluation of an investor's current and future financial state by using currently known variables to predict future cash flows, asset values and withdrawal plans.
Most individuals work in conjunction with an investment or tax professional and use current net worth, tax liabilities, asset allocation, and future retirement and estate plans in developing the plan. These will be used along with estimates of asset growth to determine if a person's financial goals can be met in the future, or what steps need to be taken to ensure that they are.
Financial analysis assignment: Analyzing the Business Strategies of Various C...Total Assignment Help
The major part of operations as discussed in this financial analysis assignment of
Woolworth's Limited is in Australia and New Zealand. The company belongs to consumer goods
industry (Woolworth's, 2019)
Quest Diagnostics held a conference call to discuss its financial results for the second quarter of 2008. The call began with introductory remarks noting some statements may be forward-looking and cautioning investors. Surya Mohapatra then stated the business performed well, with double digit revenue and earnings growth. Revenue was $1.8 billion, up 12%, and earnings per share increased 14%. Cash flow also improved. Bob Hagemann then reviewed the financial results in more detail, noting continued revenue, volume, and earnings growth. He also provided an update on cost reduction initiatives and guidance for the full year.
Running Head: FINANCIAL ANALYSIS
1
FINANCIAL ANALYSIS
7
Financial Analysis
Students Name
Institutional Affiliation
Executive summaryThis report created from the financial statements of The Coca-Cola Company (KO) provides an analysis and evaluation of the actual and the prospective liquidity, profitability and the financial stability of the company. The methods that have been used in the analysis include trend analysis, the vertical analysis and the horizontal analysis. Also we have used certain analysis such as Quick ratio, debt ratio, and the current ratios. More calculations that have been used includes the returns on the owners equity, the earning per share, net operating working capital, total operating capital, net operating capital, net operating profit after taxes, operating cash flow and free cash flow. A result from the data reveals that, all the company ratios are above the industries averages. Comparative performance is good in the area of the liquidity, credit control and inventory management.
The report finds that the tidings for the company are positive in the near future. The major areas of weakness highlighted require further investigation and immediate action by management. The recommendations that were provided include;
· Improving the average accounts receivable collection period,
· Raising/ increasing the inventory turnover and reduction of prepayments in order to have enough operating cash for the subsequent periods.
The investigation in this report also had its shortcomings that arose and are highlighted as;
The forecasted figures used are estimates that sometimes maybe arbitrate; we also cannot fully provide data on the position of other companies with the data limitation we have experienced. The monthly details would have given us more information from which we could base a proper in year trend analysis, rather than the blanket whole year analysis provided. Though we had the above mentioned strain in preparation of this report, we still great belief that the analysis provided is best suited to show the standing of the Coca-Cola Company (KO).
In the financial report below, the strengths, weakness, opportunity and threats have been highlighted as we analyze the various financial sub segments.
Identify your company, its industry, and analyze the important segments (percentage of sales or subsidiaries) of your company compared to its industry and its overall business
The Coca-Cola Company (KO) is a multinational American Company that has its headquarters at Atlanta Georgia. The company has got its branches in more than 200 countries in the world and majority of its sales is in America, amounting to 40% of the total sales. The company operates in the non alcoholic beverage industry made up of the following companies as the main rivals, Dr Pepper Snapple Group, Inc, Nestle and Pepsi Inc. the company is the best performer in market capitalization compared to competitors with a capitalization of 169.49billion, higher .
Zichun Gao Professor Karen Accounting 1AIBM FInancial Stat.docxransayo
Zichun Gao Professor Karen Accounting 1A
IBM FInancial Statement Analysis
Financial Ratios 2019 2018 Formula
Current Ratio 1.02 1.29 CA/CL
Profit Margin 12.22% 12.35% Net Income/Total Revenue
Receiveables Turnover 9.80 10.71 Revenue/Average AR
Average Collection Period 36.72 33.62 365/Receiveables Turnover
Inventory Turnover 25.11 25.36 COST/Average Inventory
Days in Inventory 14.53 14.39 365/Inventory Turnover
Debts to Asset Ratio 0.86 0.86 Total Debts/Total Assets
IBM's days in inventory is around two weeks and this means that goods in the inventory
as efficnetly distributed and that there is a consitantly good inventory control for the
company.
The company's debts to assets ratio is the same for two years and this means that the
company has less debt than asset. However, it is still a relatively poor ratio because this
might show that there are potential problems for the company to generate sufficient
revenue.
The current ratio of the company has decreased over the year, and this means that the
company has less liquid assets to cover its short term liabilities. Since the ratio is
currently approaching 1, the company might be having liquidation problem.
The profit margin for IBM is very stable and it has been about 12% for two years. The
company is performing the profit-generating ability at an average level and it is having
an average profit margin in the industry.
The receiveables turnover is good for the company while between these two years, there
is a decline. As the company is collecting its accounts receiveables around 10 times per
year, the collection is frequent.
The company has been collecting money from customers on credit sales approximately
once every month, and the company usually has fast credit collection, which means that
the risk for credit sales is relatively low.
Inventory turnover measures how many times a company sells and replaces inventory
during a year and for IBM, the number of times is stable and it is constantly around 25.
This means that the company has an efficient control of its goods in the inventory.
Free Cash Flow 11.90 11.90 CF_Operation-Capital Expenditures
Return on Assets 0.06 0.08 Net Income/Total Assets
Asset Turnover 0.51 0.65 Revenue/Assets
Figures From Financial Statement
From Income Statement pg.68
Net Income 9431 9828
Total Revenue 77147 79591
Cost 40657 42655
From Consolidated Balance Sheet pg.70
Current Assets 38420 49146
Current Liabilities 37701 38227
Accounts Receiveables 7870 7432
Inventory 1619 1682
Total Assets 152186 123382
Total Liabilities 131202 106452
From Cash Flow Overview pg.59
Net Cash From Op 14.3 15.6
Capital expenditures 2.4 3.7
The company currently has 11.9 billion dollars free cash flow for two years and this is a
relatively high level of free cash flow. With the high free cash flow, the company can
have more oportunity to expand, invest in new projects, pay dividends, or invest the
money into Resea.
Target reported third quarter earnings results that reflected sales and traffic growth but missed profit expectations due to inflationary pressures. Comparable sales increased 2.7% driven by traffic growth, but operating margin fell to 3.9% from 7.8% last year due to higher costs. In response, Target lowered its fourth quarter outlook and announced a new initiative to simplify operations and gain $2-3 billion in efficiencies over three years.
Target reported third quarter earnings results that reflected sales and traffic growth but missed profit expectations due to inflationary pressures. Comparable sales increased 2.7% driven by traffic growth, but operating margin fell to 3.9% from 7.8% last year due to higher costs. In response, Target lowered its fourth quarter guidance and announced a new enterprise initiative estimated to save $2-3 billion over three years through efficiencies.
A comprehensive evaluation of an investor's current and future financial state by using currently known variables to predict future cash flows, asset values and withdrawal plans.
Most individuals work in conjunction with an investment or tax professional and use current net worth, tax liabilities, asset allocation, and future retirement and estate plans in developing the plan. These will be used along with estimates of asset growth to determine if a person's financial goals can be met in the future, or what steps need to be taken to ensure that they are.
2/5/2019 https://blackboard.strayer.edu/bbcswebdav/institution/HRM/530/1162/Week6/Week 6 Assignment 3 Grading Rubric.html
https://blackboard.strayer.edu/bbcswebdav/institution/HRM/530/1162/Week6/Week%206%20Assignment%203%20Grading%20Rubric.html 1/1
Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing
skills, using the following rubric.
Points: 150 Assignment 3: Dismissal Meeting
Criteria
Unacceptable
Below 70% F
Fair
70-79% C
Proficient
80-89% B
Exemplary
90-100% A
1. Propose three (3)
ways that a manager
can cope with any
negative emotions that
may accompany an
employee layoff.
Weight: 15%
Did not submit or
incompletely
proposed three (3)
ways that a
manager can cope
with any negative
emotions that may
accompany an
employee layoff.
Partially proposed
three (3) ways that
a manager can
cope with any
negative emotions
that may
accompany an
employee layoff.
Satisfactorily
proposed three (3)
ways that a
manager can cope
with any negative
emotions that may
accompany an
employee layoff.
Thoroughly
proposed three (3)
ways that a
manager can cope
with any negative
emotions that may
accompany an
employee layoff.
2. Describe a step-by-
step process of
conducting the
dismissal meeting.
Weight: 15%
Did not submit or
incompletely
described a step-by-
step process of
conducting the
dismissal meeting.
Partially described
a step-by-step
process of
conducting the
dismissal meeting.
Satisfactorily
described a step-
by-step process of
conducting the
dismissal meeting.
Thoroughly
described a step-
by-step process of
conducting the
dismissal meeting.
3. Determine the
compensation that the
fictitious company may
provide to the
separated employee.
Weight: 20%
Did not submit or
incompletely
determined the
compensation that
the fictitious
company may
provide to the
separated
employee.
Partially determined
the compensation
that the fictitious
company may
provide to the
separated
employee.
Satisfactorily
determined the
compensation that
the fictitious
company may
provide to the
separated
employee.
Thoroughly
determined the
compensation that
the fictitious
company may
provide to the
separated
employee.
4. Using Microsoft
Word or an equivalent
such as OpenOffice,
create a chart that
depicts the timeline of
the disbursement of the
compensation.
Weight: 20%
Did not submit or
incompletely created
a chart that depicts
the timeline of the
disbursement of the
compensation, using
Microsoft Word or
an equivalent such
as OpenOffice.
Partially created a
chart that depicts
the timeline of the
disbursement of the
compensation,
using Microsoft
Word or an
equivalent such as
OpenOffice.
Satisfactorily
created a chart that
depicts the timeline
of the disbursement
of the
compensation,
using Microsoft
Word or an
equivalent such as
OpenOffice.
Thoroughly created
a chart that depicts
the timeline of the
disbursement of the
compensation,
using Microsoft
Word or an
equivalent such as
OpenOf.
Capital structure decisions and profitabilitybappykazi
Group G is analyzing the capital structure and profitability of Square Pharmaceuticals Ltd. The group members are Kazi Tanvirul Islam, S.M. Zayed Siraj, Jannatul Ferdows, Md. Tajmilur Rahman, and Umma Kulsum. Square Pharmaceuticals gets financing from equity, debt, retained earnings and borrowed funds. Its average debt ratio from 2006-2010 was 29% and debt increased 20% while equity increased 80%. Square Pharmaceuticals maintains low debt levels and has sound financial performance with average debt-equity ratio of 0.4. The company has stable profit margins around 18% on average.
Which of the following is considered a hybrid organizational form.docxphilipnelson29183
Which of the following is considered a hybrid organizational form?
limited liability partnership
corporation
sole proprietorship
partnership
Which of the following is a principal within the agency relationship?
the board of directors
the CEO of the firm
a shareholder
a company engineer
Teakap, Inc., has current assets of $ 1,456,312 and total assets of $4,812,369 for the year ending September 30, 2006. It also has current liabilities of $1,041,012, common equity of $1,500,000, and retained earnings of $1,468,347. How much long-term debt does the firm have?
Which of the following presents a summary of the changes in a firm’s balance sheet from the beginning of an accounting period to the end of that accounting period?
The statement of net worth.
The statement of retained earnings.
The statement of working capital.
The statement of cash flows.
Efficiency ratio: Gateway Corp. has an inventory turnover ratio of 5.6. What is the firm's days's sales in inventory?
61.7 days
57.9 days
65.2 days
64.3 days
IE
Leverage ratio: Your firm has an equity multiplier of 2.47. What is its debt-to-equity ratio?
0
1.74
0.60
1.47
Which of the following is not a method of “benchmarking”?
Evaluating a single firm’s performance over time.
Conduct an industry group analysis.
Identify a group of firms that compete with the company being analyzed.
Utilize the DuPont system to analyze a firm’s performance.
Present value: Jack Robbins is saving for a new car. He needs to have $ 21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target? (Round to nearest dollar.)
$26,454
$16,670
$19,444
$22,680
IE
PV of multiple cash flows: Ferris, Inc., has borrowed from their bank at a rate of 8 percent and will repay the loan with interest over the next five years. Their scheduled payments, starting at the end of the year are as follows—$450,000, $560,000, $750,000, $875,000, and
$1,000,000. What is the present value of these payments? (Round to the nearest
dollar.)
$2,815,885
$2,735,200
$2,431,224
$2,615,432
PV of multiple cash flows: Ajax Corp. is expecting the following cash flows—
$79,000, $112,000, $164,000, $84,000, and $242,000—over the next five years.
If the company's opportunity cost is 15 percent, what is the present value of these
cash flows? (Round to the nearest dollar.)
$477,235
$429,560
$414,322
$480,906
IE
Future value of an annuity: Jayadev Athreya has started on his first job.
He plans to start saving for retirement early. He will invest $5,000 at the end
of each year for the next 45 years in a fund that will earn a return of 10 percent.
How much will Jayadev have at the end of 45 years? (Round to the nearest dollar.)
$2,667,904
$5,233,442
$1,745,600
$3,594,524
Serox stock was selling for $20 two years ago. The stock sold for
$25 one year ago, and it is currently selling for $28. Serox pays a $1.10 dividend
per.
After analyzing Primerica's financial statements, the author found some areas of strength and weakness. While revenue and assets grew from 2012-2014, net income grew at a slower rate. Expenses like benefits claims and sales commissions comprised a large percentage of revenue. Liquidity and efficiency ratios showed short-term debt repayment and asset utilization could improve. However, profitability ratios were strong. Further analysis revealed expenses like benefits claims increased slightly, constraining net income growth. The company needs $233 million in external funding to maintain operations.
WuXi Pharma Tech First Quarter 2013 Earnings PresentationCompany Spotlight
WuXi PharmaTech reported first quarter 2013 financial results that exceeded guidance. Total revenues grew 11.7% year-over-year to $131.9 million, driven by 15.5% growth in China-based laboratory services and 9.6% growth in manufacturing services. Non-GAAP diluted EPS grew 7.5% to $0.35. WuXi reconfirmed its full-year 2013 guidance for revenue growth of 13-15% and non-GAAP EPS growth of 6-9%. WuXi expects continued double-digit revenue growth across most business units in 2013 and remains focused on controlling costs and returning cash to shareholders.
DIVIDEND PAYOUT Dividend payout is the amount of cash that a com.docxmadlynplamondon
DIVIDEND PAYOUT
Dividend payout is the amount of cash that a company sends to its shareholders in the form of dividends. The company can decide to send all profits back to its investors, or could keep a portion of it as retained earnings (http://www.investorwords.com). In a dividend payout option, the fund pays out dividend from time to time as and when a dividend is declared
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. HSBC Holdings paid out 79% of its profit as dividends, over the trailing twelve month period. Paying out a majority of its earnings limits the amount that can be reinvested in the business. This may indicate a commitment to paying a dividend, or a dearth of investment opportunities.
HSBC Holdings has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. The dividend has been cut on at least one occasion historically. During the past ten-year period, the first annual payment was US$0.64 in 2010, compared to US$0.51 last year. The dividend has shrunk at around 2.2% a year during that period. HSBC Holdings dividend hasn't shrunk linearly at 2.2% per annum, but the CAGR is a useful estimate of the historical rate of change.
When a company's per-share dividend falls we question if this reflects poorly on either external business conditions, or the company's capital allocation decisions. Either way, we find it hard to get excited about a company with a declining dividend.
Bank of Georgia Group’s 4.6% dividend, as it has only been paying distributions for a year or so. The company also returned around 1.4% of its market capitalization to shareholders in the form of stock buybacks over the past year. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we’ll go through this below.
Payout ratios
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company’s net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Bank of Georgia Group paid out 26% of its profit as dividends. This is a middling range that strikes a nice balance between paying dividends to shareholders and retaining enough earnings to invest in future growth. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend.
Dividend Volatility
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. This company has been paying a dividend for less than 2 years, which we think is too soon to consider it a reli ...
1. As you may have noticed, remote work or work at home (or schoolTatianaMajor22
1. As you may have noticed, remote work or work at home (or school at home) has suddenly become much more frequent! This discussion forum is designed to get you to use what we know about the nature of job satisfaction to think about the possible effects of remote work on employee job satisfaction and ways to manage the new world of remote work.
Job Satisfaction is the emotional state resulting from the appraisal of one's job and job experiences. It is composed appraisals of 5 distinct facets of work. Job characteristics theory explains the factors that contribute to satisfaction with the work itself. Based on this understanding of job satisfaction, do you think working remotely will decrease employees' levels of job satisfaction, on average? What actions or policies and practices should managers and companies implement to maintain or improve employee job satisfaction in the context of remote working?
2. Which of the five competitive forces that shape strategy has the greatest influence on your project company? Explain how?
7
Duke Energy
Warren Salvodon
Ashford University
BUS401
September 10, 2021
Part 1: Dividend Analysis
Date
Name
Price
Dividend
Yield
Annual growth rate
05/05/2021
Duke Energy Corp
100.54
3.82
-
2%
05/06/2020
Duke Energy Corp
80.31
3.75
-
3%
05/01/2019
Duke Energy Corp
89.81
3.64
-
4%
05/02/2018
Duke Energy Corp
79.76
3.49
-
4%
05/03/2017
Duke Energy Corp
82.59
3.36
-
4%
05/04/2016
Duke Energy Corp
80.18
3.24
4.54
3%
05/06/2015
Duke Energy Corp
76.81
3.15
3.77
2%
04/30/2014
Duke Energy Corp
74.58
3.09
4.48
1%
05/01/2013
Duke Energy Corp
74.78
3.03
4.75
4%
05/02/2012
Duke Energy Corp
64.20
2.97
4.50
3%
05/04/2011
Duke Energy Corp
56.16
2.91
5.45
3%
The Most Recent 10, 5 and 3 Years
Date
Annual growth rate
05/05/2021
2%
05/06/2020
3%
05/01/2019
4%
05/02/2018
4%
05/03/2017
4%
05/04/2016
3%
05/06/2015
2%
04/30/2014
1%
05/01/2013
4%
05/04/2011
3%
Period of Years
Average dividend growth rate
10 yrs
3%
5 yrs
3.4%
3 yrs
3%
Summary of the Dividend Growth
The average dividend growth for the company has remained constant at 3% in both periods. However, the average growth over the last five years had a slight increase of 0.4% compared to other periods (Insider, 2021). During the previous ten years, the company’s average growth was impacted by the constant dividends it paid. It continuously inclined from 1% to 4%. Over the last five recent years, the average increased as it stagnated at 4% in about three consecutive years (Thakur, 2021). However, over the previous three recent years, the average dividend growth declined with the decline of dividends it paid during the period of years.
Distinct Estimates of the Future Dividend Growth Rate
Based on the Low-End Growth Rate and its dividend growth rate, the company has reached its minimum, and the only way is forward. It is likely to increase its dividend growth to 3%, and after another, it may jump to 4% when High-End Growth Rate is the concern. Howeve ...
This document discusses a stock market project analyzing Walmart Stores, Inc. It begins with a brief overview of Walmart's history and business model, highlighting its position as the world's largest retailer known for low prices and community involvement. The rest of the document is structured as follows:
1. History and overview of Walmart's founding and growth into the world's largest retailer.
2. Financial analysis comparing Walmart's performance over time to competitors through financial ratios.
3. Discussion of risks and challenges facing Walmart from competition and economic trends that could impact future performance.
4. Recommendation that despite short-term challenges, Walmart remains well positioned for long-term growth.
The document analyzes the financial performance of ELB Company between 2017 and 2018. It finds that while revenue and some asset values increased, costs also rose leading to a decline in net profit. A ratio analysis shows the company's liquidity remains adequate but expenses need reducing to improve profits. It recommends the company lower administrative costs, debt financing, and production expenses to boost performance.
Strategic Financial Analysis JS vs Arif HabibM.Ali Jehangir
The document compares the financial performance and capital structure of two Pakistani non-bank financial institutions, JSCL and AHL. It analyzes key ratios related to capital structure, leverage, working capital management and asset utilization. The analysis finds that JSCL has a lower debt reliance and better current ratio, while AHL has higher leverage, weaker current position and relies more on debt financing. Both companies can improve working capital management and asset intensity to enhance efficiency.
Running head FINANCIAL REPORTS ANALYSIS 2FINANCIAL REPOR.docxjeanettehully
Running head: FINANCIAL REPORTS ANALYSIS 2
FINANCIAL REPORTS ANALYSIS 2
Financial Reports Analysis
Name:
Institution:
Date:
Introduction
This paper will analyze financial reports of the leading giants in the fashion industry located in Europe that are Next PLC, and H&M. The analysis will capture the backgrounds of the two companies and evaluate their financial positions as of 2018. The report will tackle both horizontal and vertical reviews of the company with the inclusion of financial ratios. The companies’ profits will also be given importance in the analysis. Liquidation is an issue of concern to big companies included. The investment and efficiency in both Next PLC and H&M looked at to bring out the strengths and weaknesses of each company in the process of data interpretation. To finish the paper by analysis and review of the limitations to conclude the financial records of the companies presented.
Company Background
Next PLC
Next plc is a company that specializes in clothes and shoe fashion mostly — the company founded in 1864 in Leeds, England. The company has a financial target that aims at generating profits and achieving sustainability in the industry. It has over seven hundred stores, with 500 of them located in the United Kingdom and 200 distributed among European countries, the Middle East, and the continent of Asia. By 2018 statistics the company had about 43, 970 employees with a revenue of $4,055 million (Sabanoglu 2019).
H&M
H&M is a Swedish cloth retailer that focuses on fast-fashion designs for all members of society and ranked second in the industry. Erling Persson founded this company in 1947 in Sweden with women as the only customers. The company by 2015 had already acquired over 4500 stores globally, with about 132,000 individuals employed and income generated by 2016 totaling to $25.191 billion. To date, the company offers internet shopping in 33 countries (O'Connell 2019).
HORIZONTAL AND VERTICAL ANALYSIS
Parallel Analysis
In conducting a horizontal analysis of the companies in the report, their financial statements used by focusing on a specific time frame. In this report, the focus put on the information obtained as of the 2017-2018 fiscal year. Taking a look at Next PLC’s economic data as of 2017 $4097.3 million, and in 2018 the data indicates a drop in the revenues to $4055.5 million that represented a 1.02% decline in revenues. Next, PLC experienced a decrease in revenues, something opposite to their organizational objectives, something attributed to the volatile nature of U.K markets resulting in a high risk of sale (Singh 2018).
Focusing on H&M in 2017, their income was $27696.63 million, considered an increase from the previous years. In 2018 the revenues obtained by H&M totaled up to $23232.37 million a decrease in income compared to the last year by 16.1% in sales revenues. In this regard, found that H&M had the most substantial reduction in sales revenues from 2 ...
This document analyzes the financial performance of ELB Company over 2017-2018 using ratios calculated from the company's income statement, balance sheet, and cash flow statement. It finds that while revenue increased in 2018, costs also rose leading to a small decline in net profit. The company's overall financial position strengthened from 2017-2018 due to increases in assets like property and retained earnings, though cash levels fell. Liquidity and gearing ratios are calculated and analyzed, and recommendations are provided to reduce costs and leverage.
EBL's financial performance declined slightly between 2017 and 2018. While revenues increased 18.3% to $5.3 million due to sales growth, expenses also rose significantly, leading to a 6.85% decrease in net profit to $0.24 million. Asset and liability values increased overall. Current and quick ratios indicate EBL can meet short-term obligations, but the gearing ratio of 49% shows debt utilization near the optimal level. The report recommends reducing debt and implementing strategies to cut costs and boost profits.
20150215 broadspectrum investor presentationT Bone
Broadspectrum reported strong results for the first half of FY2016, with underlying EBITDA of $125 million and underlying NPAT of $28 million. The company has continued to strengthen its balance sheet, reducing net debt to $460 million and improving its leverage ratio to 1.7x. Recent contract wins post half-year, including an extension with the Department of Immigration and Border Protection, are expected to further improve Broadspectrum's financial position in FY2016 and beyond.
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During the quarter, Quest Diagnostics delivered strong growth in revenues and earnings, making progress on their strategic plan. Revenues grew 17% to $1.8 billion and earnings per share increased 31%. They drove organic revenue growth, further aligned AmeriPath, saw double-digit growth in near-patient testing, continued reducing costs, and opened a new lab in India. Guidance for 2008 remains unchanged with expected revenue growth of 9% and earnings per share between $3.00-$3.20, excluding potential special charges.
This document summarizes key aspects of long-term corporate financial planning. It discusses what financial planning involves, including creating sales forecasts, pro forma financial statements, and addressing asset/liability requirements and financing needs. It also covers determining a company's sustainable growth rate and how various factors like profit margins, assets, debt, and equity issuance influence a company's ability to grow. The document cautions that financial planning models simplify reality and changing conditions may alter the best financial policies for a company.
Christina WilliamsFin571 Corporate FinanceJoseph McDonald.docxmccormicknadine86
Christina Williams
Fin/571 Corporate Finance
Joseph McDonald
3/23/2020
FINANCIAL ANALYSIS
The analysis of the key performance of 500 fortune company
The analysis will outline the financial performance
The company description
The applications in the financial analysis
Introduction
The aim of this study is to evaluate the key performance of a 500 fortune company, the analysis focus on analyzing the organization financial performance over the period; the cashflows of the operations, performance ratios, the stock and dividends yields and revenue growth for the last three years. The analysis will also provide the company descriptions as well as the applications of this financial analysis
2
Group 1 Automotive, Inc.; NYSE: GPI
Sell used and new car and trucks
Performs auto maintenance and repairs
Offers auto financial and insurance
Ranked position 458 in 500 fortune list
Company’s description
Group 1 automotive Inc. (NYSE: GPI) deal with the new and used car and trucks, perform and maintenance and report repairs, and offers auto financing and offers auto financing and insurance services. Group 1 automotive Inc. is ranked position 458 in the 500 fortune list, thus this means that company is among the best performing automotive company in US
3
Cash flow from operations
Cash flow in 2019
OperationsCashflow 2019Cashflow 2018Cashflow
2017Operating activities $ 370.9$ 270$ 196.5Investment Activities $ - 291$ - 168$ - 312.6Financial activates $ -67$-109.5$ 121.5Net cash-flow $ 9.3 $ 10.9$ 5.4Stock based compensation $ 18.8$ 18.7 $18.9Common stock dividends $ - 20.3$ -20.8$ 20.5
Group 1 Automotive Cash Flow Statement 2005-2020 | GPI. This statement analysis included the all the operations activities in the organization in the three year from 2017 to 2019.
4
Current and historical p/e ratio
P/E Ratio calculation
Comparison of the p/e ratio
Growth rate and p/e
Debts and p/e
Verdict of Group 1automotive p/e
Price-to-earnings ratio
The current price-to-earning ratio of Group 1 automotive stands at 3.82 in this year. The lowest achieved p/e that has ever been recorded for the organization was 0.00 for year 2009. conversely, the highest p/e that was ever recorded for the company was 23.8 for the upper quarter upper of year 2008. P/E ratios primarily reflect market expectations around earnings growth rates. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. Group 1 Automotive has a P/E of 3.82 that's below the average in the US market, which is 19.0
5
Variation in the purchase of shares
Limited under the terms of the Revolving Credit Facility
$132.3 million in restricted payments
Dividends of $0.22, 0.3 and 0.91 per share
Stock dividends and the yield
The stock purchase program for the vary from time to time depending on the Board of director directives. However, the company stock operations are regulated by Revolving credit facility. For, in this the tr ...
Christina WilliamsFin571 Corporate FinanceJoseph McDonald.docxgordienaysmythe
Christina Williams
Fin/571 Corporate Finance
Joseph McDonald
3/23/2020
FINANCIAL ANALYSIS
The analysis of the key performance of 500 fortune company
The analysis will outline the financial performance
The company description
The applications in the financial analysis
Introduction
The aim of this study is to evaluate the key performance of a 500 fortune company, the analysis focus on analyzing the organization financial performance over the period; the cashflows of the operations, performance ratios, the stock and dividends yields and revenue growth for the last three years. The analysis will also provide the company descriptions as well as the applications of this financial analysis
2
Group 1 Automotive, Inc.; NYSE: GPI
Sell used and new car and trucks
Performs auto maintenance and repairs
Offers auto financial and insurance
Ranked position 458 in 500 fortune list
Company’s description
Group 1 automotive Inc. (NYSE: GPI) deal with the new and used car and trucks, perform and maintenance and report repairs, and offers auto financing and offers auto financing and insurance services. Group 1 automotive Inc. is ranked position 458 in the 500 fortune list, thus this means that company is among the best performing automotive company in US
3
Cash flow from operations
Cash flow in 2019
OperationsCashflow 2019Cashflow 2018Cashflow
2017Operating activities $ 370.9$ 270$ 196.5Investment Activities $ - 291$ - 168$ - 312.6Financial activates $ -67$-109.5$ 121.5Net cash-flow $ 9.3 $ 10.9$ 5.4Stock based compensation $ 18.8$ 18.7 $18.9Common stock dividends $ - 20.3$ -20.8$ 20.5
Group 1 Automotive Cash Flow Statement 2005-2020 | GPI. This statement analysis included the all the operations activities in the organization in the three year from 2017 to 2019.
4
Current and historical p/e ratio
P/E Ratio calculation
Comparison of the p/e ratio
Growth rate and p/e
Debts and p/e
Verdict of Group 1automotive p/e
Price-to-earnings ratio
The current price-to-earning ratio of Group 1 automotive stands at 3.82 in this year. The lowest achieved p/e that has ever been recorded for the organization was 0.00 for year 2009. conversely, the highest p/e that was ever recorded for the company was 23.8 for the upper quarter upper of year 2008. P/E ratios primarily reflect market expectations around earnings growth rates. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. Group 1 Automotive has a P/E of 3.82 that's below the average in the US market, which is 19.0
5
Variation in the purchase of shares
Limited under the terms of the Revolving Credit Facility
$132.3 million in restricted payments
Dividends of $0.22, 0.3 and 0.91 per share
Stock dividends and the yield
The stock purchase program for the vary from time to time depending on the Board of director directives. However, the company stock operations are regulated by Revolving credit facility. For, in this the tr.
Target Corporation operates general merchandise stores in the United States and Canada. The author makes corrections to previous valuation models and calculates an updated intrinsic value per share of $99.32, higher than the current stock price. Based on the higher intrinsic value and an upward stock price trend, the author recommends investors buy Target stock. The author also recommends Target maintain its current distribution policy and capital structure.
·NEWSStates Take Aim at Social Welfare Programs By Ti.docxphilipnelson29183
·
NEWS
States Take Aim at Social Welfare Programs
By
Tierney Sneed
April 9, 2015 | 5:00 a.m. EDT
Bans on steak and tattoos attract national attention, but other provisions raise concerns among advocates for the poor.
A New Jersey woman pays for food using a welfare card in January. Lawmakers in Kansas and Missouri are considering laws that would restrict what welfare recipients can buy using food stamps and other forms of public assistance.
·
·
·
·
State lawmakers attracted national attention this week for seeking to ban the use of welfare funds on lingerie, fortune tellers or even cookies, proposals that reflect a renewed focus on scrutinizing the social safety net as the country rebounds from the Great Recession.
A Missouri bill introduced by Republican state Rep. Rick Brattin would outlaw the use of welfare funds to purchase chips, energy drinks, soft drinks, seafood and steak. Kansas legislation, which has passed both chambers and is on its way to Gov. Sam Brownback’s desk, is a more comprehensive overhaul of how the state administers its benefits.
OPINION
Food Stamps Work A Lot Better Than You Think
Critics say such measures stigmatize the poor and that Republicans, who are often behind the efforts, are simply playing politics in limiting assistance programs – especially since the money is provided by the federal government rather than the state. Proponents point out that states still share the administrative costs and have an interest in pursuing programs that are effective in getting people back to work, regardless of how they’re funded.
According to those who study welfare, recipients usually prioritize the money for essentials. So provisions like those in the Kansas bill – which outlaws spending welfare money at cruise ships, tattoo parlors, casino and strip clubs – are symbolic at best.
“It’s this old idea that the poor and welfare recipients are somehow different than the rest of us, that we need to put in place controls and regulations,” says Mark Rank, a Washington University professor and author of “Living on the Edge: The Realities of Welfare in America.”
“It is also feeding into this stereotype that people have a good life on welfare and are living it up and having lobster and steak,” he says, adding, “most people are struggling to get by and the job of being poor is a very hard job."
The very poor have access to public welfare through a number of federally funded programs administered by the states. Temporary Assistance for Needy Families (TANF) provides short-term funds for families struggling to make ends meet through an Electronic Benefit Transfer (EBT) card that works like a debit card. Through Supplemental Nutrition Assistance Program (SNAP), households bringing in under a certain level of income can receive monthly allotments for food, also administered on an EBT card.
“The interest for state lawmakers has been that, even as as the economy has improved, they continue to see a lot of individuals being ad.
·Analyze HRM legal regulations and learn proper procedures for.docxphilipnelson29183
·
Analyze HRM legal regulations and learn proper procedures for reducing an organization’s liability to HRM legal problems
·
Explain the substance of the relationship between the employer, employee and independent contractor
·
Identify the duties and right of the parties in an employment contract as well as the liabilities of each in the event of non-compliance
·
Discuss issues in discrimination in hiring, Affirmative Action and Civil Rights
·
Explain government regulations of the workplace
·
Analyze and apply various HRM legal requirements
·
Use effective communication techniques.
·
Use team and problem-solving skills to collaborate on a project.
.
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2/5/2019 https://blackboard.strayer.edu/bbcswebdav/institution/HRM/530/1162/Week6/Week 6 Assignment 3 Grading Rubric.html
https://blackboard.strayer.edu/bbcswebdav/institution/HRM/530/1162/Week6/Week%206%20Assignment%203%20Grading%20Rubric.html 1/1
Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing
skills, using the following rubric.
Points: 150 Assignment 3: Dismissal Meeting
Criteria
Unacceptable
Below 70% F
Fair
70-79% C
Proficient
80-89% B
Exemplary
90-100% A
1. Propose three (3)
ways that a manager
can cope with any
negative emotions that
may accompany an
employee layoff.
Weight: 15%
Did not submit or
incompletely
proposed three (3)
ways that a
manager can cope
with any negative
emotions that may
accompany an
employee layoff.
Partially proposed
three (3) ways that
a manager can
cope with any
negative emotions
that may
accompany an
employee layoff.
Satisfactorily
proposed three (3)
ways that a
manager can cope
with any negative
emotions that may
accompany an
employee layoff.
Thoroughly
proposed three (3)
ways that a
manager can cope
with any negative
emotions that may
accompany an
employee layoff.
2. Describe a step-by-
step process of
conducting the
dismissal meeting.
Weight: 15%
Did not submit or
incompletely
described a step-by-
step process of
conducting the
dismissal meeting.
Partially described
a step-by-step
process of
conducting the
dismissal meeting.
Satisfactorily
described a step-
by-step process of
conducting the
dismissal meeting.
Thoroughly
described a step-
by-step process of
conducting the
dismissal meeting.
3. Determine the
compensation that the
fictitious company may
provide to the
separated employee.
Weight: 20%
Did not submit or
incompletely
determined the
compensation that
the fictitious
company may
provide to the
separated
employee.
Partially determined
the compensation
that the fictitious
company may
provide to the
separated
employee.
Satisfactorily
determined the
compensation that
the fictitious
company may
provide to the
separated
employee.
Thoroughly
determined the
compensation that
the fictitious
company may
provide to the
separated
employee.
4. Using Microsoft
Word or an equivalent
such as OpenOffice,
create a chart that
depicts the timeline of
the disbursement of the
compensation.
Weight: 20%
Did not submit or
incompletely created
a chart that depicts
the timeline of the
disbursement of the
compensation, using
Microsoft Word or
an equivalent such
as OpenOffice.
Partially created a
chart that depicts
the timeline of the
disbursement of the
compensation,
using Microsoft
Word or an
equivalent such as
OpenOffice.
Satisfactorily
created a chart that
depicts the timeline
of the disbursement
of the
compensation,
using Microsoft
Word or an
equivalent such as
OpenOffice.
Thoroughly created
a chart that depicts
the timeline of the
disbursement of the
compensation,
using Microsoft
Word or an
equivalent such as
OpenOf.
Capital structure decisions and profitabilitybappykazi
Group G is analyzing the capital structure and profitability of Square Pharmaceuticals Ltd. The group members are Kazi Tanvirul Islam, S.M. Zayed Siraj, Jannatul Ferdows, Md. Tajmilur Rahman, and Umma Kulsum. Square Pharmaceuticals gets financing from equity, debt, retained earnings and borrowed funds. Its average debt ratio from 2006-2010 was 29% and debt increased 20% while equity increased 80%. Square Pharmaceuticals maintains low debt levels and has sound financial performance with average debt-equity ratio of 0.4. The company has stable profit margins around 18% on average.
Which of the following is considered a hybrid organizational form.docxphilipnelson29183
Which of the following is considered a hybrid organizational form?
limited liability partnership
corporation
sole proprietorship
partnership
Which of the following is a principal within the agency relationship?
the board of directors
the CEO of the firm
a shareholder
a company engineer
Teakap, Inc., has current assets of $ 1,456,312 and total assets of $4,812,369 for the year ending September 30, 2006. It also has current liabilities of $1,041,012, common equity of $1,500,000, and retained earnings of $1,468,347. How much long-term debt does the firm have?
Which of the following presents a summary of the changes in a firm’s balance sheet from the beginning of an accounting period to the end of that accounting period?
The statement of net worth.
The statement of retained earnings.
The statement of working capital.
The statement of cash flows.
Efficiency ratio: Gateway Corp. has an inventory turnover ratio of 5.6. What is the firm's days's sales in inventory?
61.7 days
57.9 days
65.2 days
64.3 days
IE
Leverage ratio: Your firm has an equity multiplier of 2.47. What is its debt-to-equity ratio?
0
1.74
0.60
1.47
Which of the following is not a method of “benchmarking”?
Evaluating a single firm’s performance over time.
Conduct an industry group analysis.
Identify a group of firms that compete with the company being analyzed.
Utilize the DuPont system to analyze a firm’s performance.
Present value: Jack Robbins is saving for a new car. He needs to have $ 21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target? (Round to nearest dollar.)
$26,454
$16,670
$19,444
$22,680
IE
PV of multiple cash flows: Ferris, Inc., has borrowed from their bank at a rate of 8 percent and will repay the loan with interest over the next five years. Their scheduled payments, starting at the end of the year are as follows—$450,000, $560,000, $750,000, $875,000, and
$1,000,000. What is the present value of these payments? (Round to the nearest
dollar.)
$2,815,885
$2,735,200
$2,431,224
$2,615,432
PV of multiple cash flows: Ajax Corp. is expecting the following cash flows—
$79,000, $112,000, $164,000, $84,000, and $242,000—over the next five years.
If the company's opportunity cost is 15 percent, what is the present value of these
cash flows? (Round to the nearest dollar.)
$477,235
$429,560
$414,322
$480,906
IE
Future value of an annuity: Jayadev Athreya has started on his first job.
He plans to start saving for retirement early. He will invest $5,000 at the end
of each year for the next 45 years in a fund that will earn a return of 10 percent.
How much will Jayadev have at the end of 45 years? (Round to the nearest dollar.)
$2,667,904
$5,233,442
$1,745,600
$3,594,524
Serox stock was selling for $20 two years ago. The stock sold for
$25 one year ago, and it is currently selling for $28. Serox pays a $1.10 dividend
per.
After analyzing Primerica's financial statements, the author found some areas of strength and weakness. While revenue and assets grew from 2012-2014, net income grew at a slower rate. Expenses like benefits claims and sales commissions comprised a large percentage of revenue. Liquidity and efficiency ratios showed short-term debt repayment and asset utilization could improve. However, profitability ratios were strong. Further analysis revealed expenses like benefits claims increased slightly, constraining net income growth. The company needs $233 million in external funding to maintain operations.
WuXi Pharma Tech First Quarter 2013 Earnings PresentationCompany Spotlight
WuXi PharmaTech reported first quarter 2013 financial results that exceeded guidance. Total revenues grew 11.7% year-over-year to $131.9 million, driven by 15.5% growth in China-based laboratory services and 9.6% growth in manufacturing services. Non-GAAP diluted EPS grew 7.5% to $0.35. WuXi reconfirmed its full-year 2013 guidance for revenue growth of 13-15% and non-GAAP EPS growth of 6-9%. WuXi expects continued double-digit revenue growth across most business units in 2013 and remains focused on controlling costs and returning cash to shareholders.
DIVIDEND PAYOUT Dividend payout is the amount of cash that a com.docxmadlynplamondon
DIVIDEND PAYOUT
Dividend payout is the amount of cash that a company sends to its shareholders in the form of dividends. The company can decide to send all profits back to its investors, or could keep a portion of it as retained earnings (http://www.investorwords.com). In a dividend payout option, the fund pays out dividend from time to time as and when a dividend is declared
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. HSBC Holdings paid out 79% of its profit as dividends, over the trailing twelve month period. Paying out a majority of its earnings limits the amount that can be reinvested in the business. This may indicate a commitment to paying a dividend, or a dearth of investment opportunities.
HSBC Holdings has been paying dividends for a long time, but for the purpose of this analysis, we only examine the past 10 years of payments. The dividend has been cut on at least one occasion historically. During the past ten-year period, the first annual payment was US$0.64 in 2010, compared to US$0.51 last year. The dividend has shrunk at around 2.2% a year during that period. HSBC Holdings dividend hasn't shrunk linearly at 2.2% per annum, but the CAGR is a useful estimate of the historical rate of change.
When a company's per-share dividend falls we question if this reflects poorly on either external business conditions, or the company's capital allocation decisions. Either way, we find it hard to get excited about a company with a declining dividend.
Bank of Georgia Group’s 4.6% dividend, as it has only been paying distributions for a year or so. The company also returned around 1.4% of its market capitalization to shareholders in the form of stock buybacks over the past year. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we’ll go through this below.
Payout ratios
Companies (usually) pay dividends out of their earnings. If a company is paying more than it earns, the dividend might have to be cut. Comparing dividend payments to a company’s net profit after tax is a simple way of reality-checking whether a dividend is sustainable. In the last year, Bank of Georgia Group paid out 26% of its profit as dividends. This is a middling range that strikes a nice balance between paying dividends to shareholders and retaining enough earnings to invest in future growth. One of the risks is that management reinvests the retained capital poorly instead of paying a higher dividend.
Dividend Volatility
Before buying a stock for its income, we want to see if the dividends have been stable in the past, and if the company has a track record of maintaining its dividend. This company has been paying a dividend for less than 2 years, which we think is too soon to consider it a reli ...
1. As you may have noticed, remote work or work at home (or schoolTatianaMajor22
1. As you may have noticed, remote work or work at home (or school at home) has suddenly become much more frequent! This discussion forum is designed to get you to use what we know about the nature of job satisfaction to think about the possible effects of remote work on employee job satisfaction and ways to manage the new world of remote work.
Job Satisfaction is the emotional state resulting from the appraisal of one's job and job experiences. It is composed appraisals of 5 distinct facets of work. Job characteristics theory explains the factors that contribute to satisfaction with the work itself. Based on this understanding of job satisfaction, do you think working remotely will decrease employees' levels of job satisfaction, on average? What actions or policies and practices should managers and companies implement to maintain or improve employee job satisfaction in the context of remote working?
2. Which of the five competitive forces that shape strategy has the greatest influence on your project company? Explain how?
7
Duke Energy
Warren Salvodon
Ashford University
BUS401
September 10, 2021
Part 1: Dividend Analysis
Date
Name
Price
Dividend
Yield
Annual growth rate
05/05/2021
Duke Energy Corp
100.54
3.82
-
2%
05/06/2020
Duke Energy Corp
80.31
3.75
-
3%
05/01/2019
Duke Energy Corp
89.81
3.64
-
4%
05/02/2018
Duke Energy Corp
79.76
3.49
-
4%
05/03/2017
Duke Energy Corp
82.59
3.36
-
4%
05/04/2016
Duke Energy Corp
80.18
3.24
4.54
3%
05/06/2015
Duke Energy Corp
76.81
3.15
3.77
2%
04/30/2014
Duke Energy Corp
74.58
3.09
4.48
1%
05/01/2013
Duke Energy Corp
74.78
3.03
4.75
4%
05/02/2012
Duke Energy Corp
64.20
2.97
4.50
3%
05/04/2011
Duke Energy Corp
56.16
2.91
5.45
3%
The Most Recent 10, 5 and 3 Years
Date
Annual growth rate
05/05/2021
2%
05/06/2020
3%
05/01/2019
4%
05/02/2018
4%
05/03/2017
4%
05/04/2016
3%
05/06/2015
2%
04/30/2014
1%
05/01/2013
4%
05/04/2011
3%
Period of Years
Average dividend growth rate
10 yrs
3%
5 yrs
3.4%
3 yrs
3%
Summary of the Dividend Growth
The average dividend growth for the company has remained constant at 3% in both periods. However, the average growth over the last five years had a slight increase of 0.4% compared to other periods (Insider, 2021). During the previous ten years, the company’s average growth was impacted by the constant dividends it paid. It continuously inclined from 1% to 4%. Over the last five recent years, the average increased as it stagnated at 4% in about three consecutive years (Thakur, 2021). However, over the previous three recent years, the average dividend growth declined with the decline of dividends it paid during the period of years.
Distinct Estimates of the Future Dividend Growth Rate
Based on the Low-End Growth Rate and its dividend growth rate, the company has reached its minimum, and the only way is forward. It is likely to increase its dividend growth to 3%, and after another, it may jump to 4% when High-End Growth Rate is the concern. Howeve ...
This document discusses a stock market project analyzing Walmart Stores, Inc. It begins with a brief overview of Walmart's history and business model, highlighting its position as the world's largest retailer known for low prices and community involvement. The rest of the document is structured as follows:
1. History and overview of Walmart's founding and growth into the world's largest retailer.
2. Financial analysis comparing Walmart's performance over time to competitors through financial ratios.
3. Discussion of risks and challenges facing Walmart from competition and economic trends that could impact future performance.
4. Recommendation that despite short-term challenges, Walmart remains well positioned for long-term growth.
The document analyzes the financial performance of ELB Company between 2017 and 2018. It finds that while revenue and some asset values increased, costs also rose leading to a decline in net profit. A ratio analysis shows the company's liquidity remains adequate but expenses need reducing to improve profits. It recommends the company lower administrative costs, debt financing, and production expenses to boost performance.
Strategic Financial Analysis JS vs Arif HabibM.Ali Jehangir
The document compares the financial performance and capital structure of two Pakistani non-bank financial institutions, JSCL and AHL. It analyzes key ratios related to capital structure, leverage, working capital management and asset utilization. The analysis finds that JSCL has a lower debt reliance and better current ratio, while AHL has higher leverage, weaker current position and relies more on debt financing. Both companies can improve working capital management and asset intensity to enhance efficiency.
Running head FINANCIAL REPORTS ANALYSIS 2FINANCIAL REPOR.docxjeanettehully
Running head: FINANCIAL REPORTS ANALYSIS 2
FINANCIAL REPORTS ANALYSIS 2
Financial Reports Analysis
Name:
Institution:
Date:
Introduction
This paper will analyze financial reports of the leading giants in the fashion industry located in Europe that are Next PLC, and H&M. The analysis will capture the backgrounds of the two companies and evaluate their financial positions as of 2018. The report will tackle both horizontal and vertical reviews of the company with the inclusion of financial ratios. The companies’ profits will also be given importance in the analysis. Liquidation is an issue of concern to big companies included. The investment and efficiency in both Next PLC and H&M looked at to bring out the strengths and weaknesses of each company in the process of data interpretation. To finish the paper by analysis and review of the limitations to conclude the financial records of the companies presented.
Company Background
Next PLC
Next plc is a company that specializes in clothes and shoe fashion mostly — the company founded in 1864 in Leeds, England. The company has a financial target that aims at generating profits and achieving sustainability in the industry. It has over seven hundred stores, with 500 of them located in the United Kingdom and 200 distributed among European countries, the Middle East, and the continent of Asia. By 2018 statistics the company had about 43, 970 employees with a revenue of $4,055 million (Sabanoglu 2019).
H&M
H&M is a Swedish cloth retailer that focuses on fast-fashion designs for all members of society and ranked second in the industry. Erling Persson founded this company in 1947 in Sweden with women as the only customers. The company by 2015 had already acquired over 4500 stores globally, with about 132,000 individuals employed and income generated by 2016 totaling to $25.191 billion. To date, the company offers internet shopping in 33 countries (O'Connell 2019).
HORIZONTAL AND VERTICAL ANALYSIS
Parallel Analysis
In conducting a horizontal analysis of the companies in the report, their financial statements used by focusing on a specific time frame. In this report, the focus put on the information obtained as of the 2017-2018 fiscal year. Taking a look at Next PLC’s economic data as of 2017 $4097.3 million, and in 2018 the data indicates a drop in the revenues to $4055.5 million that represented a 1.02% decline in revenues. Next, PLC experienced a decrease in revenues, something opposite to their organizational objectives, something attributed to the volatile nature of U.K markets resulting in a high risk of sale (Singh 2018).
Focusing on H&M in 2017, their income was $27696.63 million, considered an increase from the previous years. In 2018 the revenues obtained by H&M totaled up to $23232.37 million a decrease in income compared to the last year by 16.1% in sales revenues. In this regard, found that H&M had the most substantial reduction in sales revenues from 2 ...
This document analyzes the financial performance of ELB Company over 2017-2018 using ratios calculated from the company's income statement, balance sheet, and cash flow statement. It finds that while revenue increased in 2018, costs also rose leading to a small decline in net profit. The company's overall financial position strengthened from 2017-2018 due to increases in assets like property and retained earnings, though cash levels fell. Liquidity and gearing ratios are calculated and analyzed, and recommendations are provided to reduce costs and leverage.
EBL's financial performance declined slightly between 2017 and 2018. While revenues increased 18.3% to $5.3 million due to sales growth, expenses also rose significantly, leading to a 6.85% decrease in net profit to $0.24 million. Asset and liability values increased overall. Current and quick ratios indicate EBL can meet short-term obligations, but the gearing ratio of 49% shows debt utilization near the optimal level. The report recommends reducing debt and implementing strategies to cut costs and boost profits.
20150215 broadspectrum investor presentationT Bone
Broadspectrum reported strong results for the first half of FY2016, with underlying EBITDA of $125 million and underlying NPAT of $28 million. The company has continued to strengthen its balance sheet, reducing net debt to $460 million and improving its leverage ratio to 1.7x. Recent contract wins post half-year, including an extension with the Department of Immigration and Border Protection, are expected to further improve Broadspectrum's financial position in FY2016 and beyond.
Mien Phi Tai 10 Bai Assignment Mau Tu Moi Chu De
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During the quarter, Quest Diagnostics delivered strong growth in revenues and earnings, making progress on their strategic plan. Revenues grew 17% to $1.8 billion and earnings per share increased 31%. They drove organic revenue growth, further aligned AmeriPath, saw double-digit growth in near-patient testing, continued reducing costs, and opened a new lab in India. Guidance for 2008 remains unchanged with expected revenue growth of 9% and earnings per share between $3.00-$3.20, excluding potential special charges.
This document summarizes key aspects of long-term corporate financial planning. It discusses what financial planning involves, including creating sales forecasts, pro forma financial statements, and addressing asset/liability requirements and financing needs. It also covers determining a company's sustainable growth rate and how various factors like profit margins, assets, debt, and equity issuance influence a company's ability to grow. The document cautions that financial planning models simplify reality and changing conditions may alter the best financial policies for a company.
Christina WilliamsFin571 Corporate FinanceJoseph McDonald.docxmccormicknadine86
Christina Williams
Fin/571 Corporate Finance
Joseph McDonald
3/23/2020
FINANCIAL ANALYSIS
The analysis of the key performance of 500 fortune company
The analysis will outline the financial performance
The company description
The applications in the financial analysis
Introduction
The aim of this study is to evaluate the key performance of a 500 fortune company, the analysis focus on analyzing the organization financial performance over the period; the cashflows of the operations, performance ratios, the stock and dividends yields and revenue growth for the last three years. The analysis will also provide the company descriptions as well as the applications of this financial analysis
2
Group 1 Automotive, Inc.; NYSE: GPI
Sell used and new car and trucks
Performs auto maintenance and repairs
Offers auto financial and insurance
Ranked position 458 in 500 fortune list
Company’s description
Group 1 automotive Inc. (NYSE: GPI) deal with the new and used car and trucks, perform and maintenance and report repairs, and offers auto financing and offers auto financing and insurance services. Group 1 automotive Inc. is ranked position 458 in the 500 fortune list, thus this means that company is among the best performing automotive company in US
3
Cash flow from operations
Cash flow in 2019
OperationsCashflow 2019Cashflow 2018Cashflow
2017Operating activities $ 370.9$ 270$ 196.5Investment Activities $ - 291$ - 168$ - 312.6Financial activates $ -67$-109.5$ 121.5Net cash-flow $ 9.3 $ 10.9$ 5.4Stock based compensation $ 18.8$ 18.7 $18.9Common stock dividends $ - 20.3$ -20.8$ 20.5
Group 1 Automotive Cash Flow Statement 2005-2020 | GPI. This statement analysis included the all the operations activities in the organization in the three year from 2017 to 2019.
4
Current and historical p/e ratio
P/E Ratio calculation
Comparison of the p/e ratio
Growth rate and p/e
Debts and p/e
Verdict of Group 1automotive p/e
Price-to-earnings ratio
The current price-to-earning ratio of Group 1 automotive stands at 3.82 in this year. The lowest achieved p/e that has ever been recorded for the organization was 0.00 for year 2009. conversely, the highest p/e that was ever recorded for the company was 23.8 for the upper quarter upper of year 2008. P/E ratios primarily reflect market expectations around earnings growth rates. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. Group 1 Automotive has a P/E of 3.82 that's below the average in the US market, which is 19.0
5
Variation in the purchase of shares
Limited under the terms of the Revolving Credit Facility
$132.3 million in restricted payments
Dividends of $0.22, 0.3 and 0.91 per share
Stock dividends and the yield
The stock purchase program for the vary from time to time depending on the Board of director directives. However, the company stock operations are regulated by Revolving credit facility. For, in this the tr ...
Christina WilliamsFin571 Corporate FinanceJoseph McDonald.docxgordienaysmythe
Christina Williams
Fin/571 Corporate Finance
Joseph McDonald
3/23/2020
FINANCIAL ANALYSIS
The analysis of the key performance of 500 fortune company
The analysis will outline the financial performance
The company description
The applications in the financial analysis
Introduction
The aim of this study is to evaluate the key performance of a 500 fortune company, the analysis focus on analyzing the organization financial performance over the period; the cashflows of the operations, performance ratios, the stock and dividends yields and revenue growth for the last three years. The analysis will also provide the company descriptions as well as the applications of this financial analysis
2
Group 1 Automotive, Inc.; NYSE: GPI
Sell used and new car and trucks
Performs auto maintenance and repairs
Offers auto financial and insurance
Ranked position 458 in 500 fortune list
Company’s description
Group 1 automotive Inc. (NYSE: GPI) deal with the new and used car and trucks, perform and maintenance and report repairs, and offers auto financing and offers auto financing and insurance services. Group 1 automotive Inc. is ranked position 458 in the 500 fortune list, thus this means that company is among the best performing automotive company in US
3
Cash flow from operations
Cash flow in 2019
OperationsCashflow 2019Cashflow 2018Cashflow
2017Operating activities $ 370.9$ 270$ 196.5Investment Activities $ - 291$ - 168$ - 312.6Financial activates $ -67$-109.5$ 121.5Net cash-flow $ 9.3 $ 10.9$ 5.4Stock based compensation $ 18.8$ 18.7 $18.9Common stock dividends $ - 20.3$ -20.8$ 20.5
Group 1 Automotive Cash Flow Statement 2005-2020 | GPI. This statement analysis included the all the operations activities in the organization in the three year from 2017 to 2019.
4
Current and historical p/e ratio
P/E Ratio calculation
Comparison of the p/e ratio
Growth rate and p/e
Debts and p/e
Verdict of Group 1automotive p/e
Price-to-earnings ratio
The current price-to-earning ratio of Group 1 automotive stands at 3.82 in this year. The lowest achieved p/e that has ever been recorded for the organization was 0.00 for year 2009. conversely, the highest p/e that was ever recorded for the company was 23.8 for the upper quarter upper of year 2008. P/E ratios primarily reflect market expectations around earnings growth rates. If earnings are growing quickly, then the 'E' in the equation will increase faster than it would otherwise. Group 1 Automotive has a P/E of 3.82 that's below the average in the US market, which is 19.0
5
Variation in the purchase of shares
Limited under the terms of the Revolving Credit Facility
$132.3 million in restricted payments
Dividends of $0.22, 0.3 and 0.91 per share
Stock dividends and the yield
The stock purchase program for the vary from time to time depending on the Board of director directives. However, the company stock operations are regulated by Revolving credit facility. For, in this the tr.
Target Corporation operates general merchandise stores in the United States and Canada. The author makes corrections to previous valuation models and calculates an updated intrinsic value per share of $99.32, higher than the current stock price. Based on the higher intrinsic value and an upward stock price trend, the author recommends investors buy Target stock. The author also recommends Target maintain its current distribution policy and capital structure.
Similar to Week 2 Financial Forecast Using Excel Financial Forecasting For T.docx (20)
·NEWSStates Take Aim at Social Welfare Programs By Ti.docxphilipnelson29183
·
NEWS
States Take Aim at Social Welfare Programs
By
Tierney Sneed
April 9, 2015 | 5:00 a.m. EDT
Bans on steak and tattoos attract national attention, but other provisions raise concerns among advocates for the poor.
A New Jersey woman pays for food using a welfare card in January. Lawmakers in Kansas and Missouri are considering laws that would restrict what welfare recipients can buy using food stamps and other forms of public assistance.
·
·
·
·
State lawmakers attracted national attention this week for seeking to ban the use of welfare funds on lingerie, fortune tellers or even cookies, proposals that reflect a renewed focus on scrutinizing the social safety net as the country rebounds from the Great Recession.
A Missouri bill introduced by Republican state Rep. Rick Brattin would outlaw the use of welfare funds to purchase chips, energy drinks, soft drinks, seafood and steak. Kansas legislation, which has passed both chambers and is on its way to Gov. Sam Brownback’s desk, is a more comprehensive overhaul of how the state administers its benefits.
OPINION
Food Stamps Work A Lot Better Than You Think
Critics say such measures stigmatize the poor and that Republicans, who are often behind the efforts, are simply playing politics in limiting assistance programs – especially since the money is provided by the federal government rather than the state. Proponents point out that states still share the administrative costs and have an interest in pursuing programs that are effective in getting people back to work, regardless of how they’re funded.
According to those who study welfare, recipients usually prioritize the money for essentials. So provisions like those in the Kansas bill – which outlaws spending welfare money at cruise ships, tattoo parlors, casino and strip clubs – are symbolic at best.
“It’s this old idea that the poor and welfare recipients are somehow different than the rest of us, that we need to put in place controls and regulations,” says Mark Rank, a Washington University professor and author of “Living on the Edge: The Realities of Welfare in America.”
“It is also feeding into this stereotype that people have a good life on welfare and are living it up and having lobster and steak,” he says, adding, “most people are struggling to get by and the job of being poor is a very hard job."
The very poor have access to public welfare through a number of federally funded programs administered by the states. Temporary Assistance for Needy Families (TANF) provides short-term funds for families struggling to make ends meet through an Electronic Benefit Transfer (EBT) card that works like a debit card. Through Supplemental Nutrition Assistance Program (SNAP), households bringing in under a certain level of income can receive monthly allotments for food, also administered on an EBT card.
“The interest for state lawmakers has been that, even as as the economy has improved, they continue to see a lot of individuals being ad.
·Analyze HRM legal regulations and learn proper procedures for.docxphilipnelson29183
·
Analyze HRM legal regulations and learn proper procedures for reducing an organization’s liability to HRM legal problems
·
Explain the substance of the relationship between the employer, employee and independent contractor
·
Identify the duties and right of the parties in an employment contract as well as the liabilities of each in the event of non-compliance
·
Discuss issues in discrimination in hiring, Affirmative Action and Civil Rights
·
Explain government regulations of the workplace
·
Analyze and apply various HRM legal requirements
·
Use effective communication techniques.
·
Use team and problem-solving skills to collaborate on a project.
.
~GOODWRITER~You have now delivered the project to your customer..docxphilipnelson29183
~GOODWRITER~
You have now delivered the project to your customer. Now, it is time to reflect on what went well and what didn’t go so well. Based on feedback throughout the course, what would you have done differently in terms of scope, resources, and / or schedule, and why?
-ORIGINAL WORK - ONLY
-MUST Pass Originality Report
-MUST Pass SAFEASSIGN Plagiarism Check - 12% or LESS
-List ALL Referenced Material - NO Wikipedia Please
-B or Above Grade
.
__ captures a mother and child at the table in __ Paula Modersohn .docxphilipnelson29183
__ captures a mother and child at the table in __
Paula Modersohn Becker reflects on mothering in her __
Sonia Delaunary embraces cubism with her piece entitled _
Pregnant Maria is by _
_Created the earth Goddess
Essay Identify some of the post modern trends movement that womrn artist have participatewo
.
__ de Dolores son médicos.Dolores tiene un tío que es __.A la ab.docxphilipnelson29183
El resumen habla sobre la familia de Dolores. Menciona que algunos de sus tíos son médicos, que su tío es algo en particular, y que a su abuela le gusta algo. También dice que el padre de Dolores es algo.
[removed]
World’s Biggest Public Companies
Start with the Excel workbook (spreadsheet) World’s Biggest Public Companies
– start.xlsx.
This
data
shows
information
produced
by Forbes
in terms
of the
World’s
Largest
Public
Companies.
In column
B, the
company’s
name
is displayed;
in column
C, the
country;
in
column
D, the
company’s
2013
sales;
in column
E, the
company’s
2013
profits;
in column
F,
the
company’s
2013
assets;
in column
G, the
company’s
2013
market
value.
In the
range
I1:M5,
you
will
see
the
first
matrix
that
you
will
need
to summarize,
where
the
goal
is to determine
the
median
value
of sales,
profits,
assets
and
market
value
respective
to the
corresponding
country.
However,
to date,
Excel
does
not
feature
a MEDIANIFS
function.
Thus,
you
will
have
to use
an array
formula
similar
to our
learning
activity.
Executing
this
statement
correctly
will
produce
a median
of the
desired
values
in the
dataset
for
the
given
country
of interest.
In the
range
I7:M11,
you
will
see
the
second
matrix
that
you
will
need
to sum
marize,
where
the
goal
is to determine
the
min
value
of sales,
profits,
assets
and
market
value
respective
to the
corresponding
country.
However,
to date,
Excel
does
not
feature
a MINIFS
function.
Thus,
you
will
have
to use
an array
formula
similar
to our
learning
activity.
Executing
this
statement
correctly
will
produce
a min
of the
desired
values
in the
dataset
for
the
given
country
of interest.
In the
range
I13:M17,
you
will
see
the
third
matrix
that
you
will
need
to summarize,
where
the
goal
is to deter
mine
the
max
value
of sales,
profits,
assets
and
market
value
respective
to the
corresponding
country.
However,
to date,
Excel
does
not
feature
a MAXIFS
function.
Thus,
you
will
have
to use
an array
formula
similar
to our
learning
activity.
Executing
this
statement
correctly
will
produce
a max
of the
desired
values
in the
dataset
for
the
given
country
of interest.
In the
range
I19:M
23,
you
will
see
the
third
matrix
that
you
will
need
to summarize,
where
the
goal
is to determine
the
standard
deviation
value
of sales,
profits,
assets
and
market
value
respective
to the
corresponding
country.
However,
to date,
Excel
does
not
feature
a
STDEV.S.IFS
function.
Thus,
you
will
have
to use
an array
formula
similar
to our
learning
activity.
Executing
this
statement
correctly
will
produce
a max
of the
desired
values
in the
dataset
for
the
given
country
of interest.
Please
note
that
the
“dot
S” portion
of the
STDEV
function
indicates
that
we
are
taking
the
standard
deviation
of a sample.
This
is a sample
since
we
do not
have
information
from
all
companies
(i.e.
population).
Finally,
ensure
that
all
values
in your
summary
tables
are
formatted
with
an Accounting
style
with
two
decimals
showing
(i.e.
$52.21)
HINT:
Be
very
careful
about
what
cell
references
are
absolute
and
which
are
mixed
(the
row
or column
absolute
and
the
other
relative).
Also, remember that you must use a
Ctrl+Shift+Enter keystroke in order to implement an array form.
[removed]
1
Governmental and Not-for-Profit Accounting
Fall 2016
Project (100 points)
Obtain a copy of Comprehensive A
nnual Financial Report (CAFR) o
nline, either from Blackboard or
on the website of any municipality of your selection. Review t
he CAFR you select and answer the
following questions. Your answers
should be concise but to the
point.
This is an individual project
. You can collaborate with others
but you should submit project answers
individually. If you collaborat
e with your classmate(s), you s
hould indicate the name of persons you
collaborate with in the project.
A word about answering the questio
ns below: Don’t just answer “
yes” or “no”; try to elaborate by
combining the knowledge you learnt
from the class. This certai
nly will help you e
arn better grade
from this project.
You are required to type the ans
wers. Present your answers in
a nice and neat format; just think about
how you would make it easier to
read. A portion of your grade
will be based on the p
resentation of
project.
Part I Overview of report
1.
What are three main sections of the report?
2.
Review the introductory secti
on of the CAFR. What are key issu
es addressed in the letter of
transmittal?
3.
Review the financial section.
a.
Does the report provide a r
econciliation betw
een total governme
ntal net position per the
government-wide statement of net position and total governmenta
l fund balances per the
governmental funds balance sheet? If so, what are the main rec
onciling items?
b.
What are the major governmental
funds maintained by the entity?
c.
Does the report include “require
d supplementary information?”
If so, what are the main
areas addressed?
d.
Does the report include “combin
ing statements?” If so, what is
the nature of these
statements?
4.
Review the statistical section.
a.
What is the population of th
e entity being reported on?
b.
Who is the entity’s major employer?
c.
What is the amount of net debt per
capita? The city’s legal de
bt margin? The amount of
direct and overlapping debt?
5.
Component units
a.
Does the notes to the financial s
tatements indicate the compone
nt units that are included
within the reporting entity? D
o they indicate any units that a
re not included? Do they
explain why these units are
included or excluded?
b.
How are the component units presented in the government-wide fi
nancial statements? In
the fund statements?
2
Part II Budget
1.
In which section of the CAFR are
the budget-to-actual compariso
ns of the major funds?
a.
Which accounting basis did the City follow to prepare its annua
l operating budget?
b.
Are the actual amounts on a GAAP or a budgetary basis? Do the
statements include a
reconciliation of any difference
s between GAAP and budgetary am
ounts? If so, what are
the largest reconciled items?
c.
Are the reported variances base
d on the original budget or the
year-end amended budget?
2.
Does the CAFR include budget-to-
actual comparisons of nonmajor
funds? If so, in what sections?
3.
Do.
Zhibei Wang04172020Page 5Authoritarian or Authoritati.docxphilipnelson29183
Zhibei Wang
04/17/2020
Page: 5
Authoritarian or Authoritative Parenting Style: Which Is in Best Interest for Children
Tough Love has gone viral on internet. It is a fanfic musical production about the stepmothers of Disney princesses. It is quite a mockery for the self-pitying but in fact cruel upbringing of the young girls. It is fictional and the stepmothers don’t love their stepdaughters necessarily, but we have to reflect on it: when we are parents, what are the best method to be taken so that our children can be responsible and positive grownups. Authoritarian or authoritative? It is a hot topic that never grows old; every parent has their reason to act upon. Experiencing quite a mix of harsh and lenient ways in my childhood, I find authoritative one more favorable. In the following paragraphs, I will talk about the advantages and disadvantages of both parenting styles.
Positive authoritative are defined as parents to be instructive and highly responsive to the development of child growth (Baumrind, 1966); On the contrary, authoritarian is control over most aspects of children’s lives, to make sure they stay on track (Kuppens & Ceulemans, 2019). There are pros and cons to both sides.
As of authoritarian, the most important outcome is the high academic performances. Authoritarian parents put a lot of effort into student’s schoolwork and extracurricular activities, such as playing piano or violin. They closely follow children’s daily routine, make sure every minute will not go wasted. They want every investment to give harvests. They take their children to all kinds of competitions, and win loads of certificates to quantify how successful and extraordinary the child is. They see children as another form of themselves, impose their dreams on children. Indeed, children who have worked all day, with all kinds of championships and scholarships could end up in ivy league and possibly win a prestigious job when graduated. It seems they have lived a life everyone desires and so it satisfies the parents.
However, it is not the most favorable approach in academia, and there are a lot of downsides to it. First, it restrains the possibility of cultivating comprehensive personalities. Children become obedient to their parents, they cannot communicate well with their peers, their only profound relationship are with their parents throughout their lives, and it is no sign of a fully grown man. I personally have seen too much of a case. People who grow up under the shadow of their parents tend to be indecisive and too dependent on their parents. It is the consequence of psychological control of the authoritarian parenting. Whenever they speak of their mind, they got turned down or shouted back. Then they don’t speak much about themselves with self-centered parents, who think they are doing the best for kids. Under high pressures from parents and with no one can turn to, children are also bearing overwhelming stress and defeated feelings, which c.
Zinn Ch 14 - http://www.historyisaweapon.com/defcon1/zinnwarhea14.html
In what ways did the United States government sway public opinion to support the war effort? From your own perspective, was it appropriate for the government to employ such methods to build a consensus?
Upon passage of the Espionage and Sedition Acts, many people felt that their civil liberties were under attack as the government sought to stifle dissent. Do you think these measures were an appropriate domestic policy during a time of war? Explain. Do you think they were constitutional? Why or why not?
When Eugene Debs was in prison serving his term for violating the Espionage Act of 1917, he ran for president during the 1918 presidential election. While he was in prison, he won almost one million votes. Ho was that possible? What does this tell you about American society in 1918?
Explain how Americans used the language of freedom when discussing foreign policy. Look specifically at the foreign policies of Roosevelt, Taft, and Wilson in your answer. Did the meaning of freedom change with each administration or stay constant?
Compare Roosevelt’s and Wilson’s attitudes toward blacks. How significant were the actions of the federal government in advancing freedoms for blacks during the early twentieth century?
Explain and analyze W. E. B. Du Bois’s political ideas. How did he attempt to expand civil rights for African-Americans?
Progressives continued to make strides during the war. Discuss the various Progressive accomplishments between 1916 and 1920. Comment on why the movement declined by 1920.
.
Zeno of Elea.Heres the assignment Write a double-spaced paper .docxphilipnelson29183
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Here's the assignment: Write a double-spaced paper and submit it online.
In your paper, give a short biography of the philosopher and include his views on at least two of these subjects: REALITY, DIVINITY, HUMANITY, KNOWLEDGE or SOCIETY.
Please make this paper approximately 500 words long.
Make sure you spell and grammar check your papers.
And try using the Hemingwayapp!
I assume you will be doing some research, so cite your sources!
I do not care about the format of your citations.
Use whatever way is comfortable for you.
.
Yo los libros en la mochila.Ana y Salvador la ta.docxphilipnelson29183
Yo los libros en la mochila.
Ana y Salvador la tarea.
La profesora Álvarez matemáticas.
Celinda y yo a la cafetería.
Tú a la residencia estudiantil.
Usted el autobús.
Lisa y Ángel inglés en la biblioteca.
Esperanza un libro.
Yo un diccionario en la librería.
Nosotros salsa muy bien.
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Youve now read Johnathan Swifts brilliant (it is, trust me) satiri.docxphilipnelson29183
You've now read Johnathan Swift's brilliant (it is, trust me) satirical essay, 'A Modest Proposal.' He was sort of the John Stewart or John Oliver of his day, so...
Write a 2-3 page dialogue between Swift and a comedian of your choice. You can certainly use John Stewart, Trevor Noah. or pick one you like - even the late great Richard Prior. You're going to discuss how comedy and society intersect, how they reflect and impact one other. So have at it and have fun.
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Youre gonna respond to Are too many people going to college by Ch.docxphilipnelson29183
You're gonna respond to "Are too many people going to college" by Charles Murray?
Please disagree with the author with his 4 points:
1. Students don't have the ability to finish tough materials of college.
2. The opportunity cost of going to colleges is too high. People can use the same time to lean things that are helpful for living.
3. College doesn't guarantee good jobs.
4. Finishing colleges doesn't really give people self-satisfication.
Those are points I summarize from Murray's article. If you think they are not good, you can read the article and change them. Then provide evidences to oppose them.
There are 5 pages of the MLA essay. You need to bring all evidences from my posted 4 articles. The prompt and requirement are within the uploaded files. Please read it carefully.
The payment can be negotiated. Please do it nice and neatly. Thank you.
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Your team was invited to present to a high school IT class to explai.docxphilipnelson29183
Your team was invited to present to a high school IT class to explain how cryptography works. In order to explain the basics, you decide to show the class a tool called, CrypTool. This web-based tool allows people to visualize encryption and decryption using common cryptography techniques. In order for the students to follow along with your demonstration, you need to create a tutorial for them.
Together as a team,
access
CrypTool (
http://www.cryptool-online.org/
).
Click
on the CrypTool link, then click
Ciphers
.
Click
and
choose
a type of cipher you would like to use under
Classical Ciphers
.
Use
CrypTool to do the following:
Determine at least five pieces of data to encrypt and decrypt
Determine a key (or a set of keys) that is different from the samples provided in CrypTool.
Attempt to break the encrypted ciphertext data using the cryptanalysis tools provided by CrypTool.
Note:
It may not always be possible to break the ciphertext. Regardless of the attempt's outcome. Document the steps taken and relevant observation notes.
Create
a tutorial with text and images (screenshots) on how to use CrypTool.
Include
the following:
Steps needed to encypt data
Steps needed to decrypt data
Steps taken to attempt to break the encrypted data using the cryptanalysis tools provided by CryptTool
Submit
the tutorial to the Assignment Files tab above.
.
Your Paper (8 pages) should include the following areas1. Cover P.docxphilipnelson29183
This document outlines the required sections for an 8-page paper, including a cover page, introduction, reasons for selecting the topic, stance, supporting/opposing groups, importance, and conclusion. It notes that the writer has the paper completed except for the cover page and reference page, so those sections need to be added to fulfill the assignment requirements.
Your organization is expanding globally and you will no longer have .docxphilipnelson29183
Your organization is expanding globally and you will no longer have direct contact with members of your team. It is important to be able to communicate effectively so that the project can be executed effectively. The team is tasked with presenting their ideas for working effectively with global and virtual teams.
Create
an 2 - slide presentation regarding global and virtual teams. In the presentation include the following:
Analyze the effects of globalization of project teams on project execution.
.
Your outline should be a detailed overview of the Service Learning .docxphilipnelson29183
Your outline should be a detailed overview of the "Service Learning Research and Reflection Essay." Use complete sentences. The outline should be approx. 2 pages in length, not including the reference page.
Also, upload your properly formatted (ASA or APA) reference page.
I have attached
Service Learning Reflection and Research Paper Guidelines
.
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A Visual Guide to 1 Samuel | A Tale of Two HeartsSteve Thomason
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تتميز هذهِ الملزمة بعِدة مُميزات :
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5- الملزمة تشرح نفسها ب نفسها بس تكلك تعال اقراني
6- تحتوي الملزمة في اول سلايد على خارطة تتضمن جميع تفرُعات معلومات الجهاز الهيكلي المذكورة في هذهِ الملزمة
واخيراً هذهِ الملزمة حلالٌ عليكم وإتمنى منكم إن تدعولي بالخير والصحة والعافية فقط
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Week 2 Financial Forecast Using Excel Financial Forecasting For T.docx
1. Week 2: Financial Forecast Using Excel Financial Forecasting
For Target Corporation
Introduction
Target Corporation has had weak sales forecasts this year as
compared to prior year. Despite this, Target Corporation is
expected to outperform in next year. The purpose of this paper
is to describe the financial projections of Target Corporation
next year over the current balances. The paper shall specifically
discuss the growth rates projected using Prof. Steven’s Model
as well, explain all other assumptions, provide explanations and
interpretation of the projected financial statements, as well as
discuss the overall forecast and financial ratios under this
model. The methodology in this analysis was basically the use
of Excel financial forecasting techniques with the aid of Prof.
Steven’s model of financial forecasting. Data was obtained
through secondary data sources, specifically online resources.
The data analysis shall be presented in table format.
Explanation of Growth Rates
Target’s growth rates for sales revenue for the current quarter
had declined by 5.6% over the last quarter’s sales. Target
Corporation’s revenues for the 12 month trailing period ending
30 Jul, 2016 are reported to have increased by 1.6% over the
prior year’s revenues. The decline in the quarterly sales
revenues since the first quarter which ended in 30 April, 2016 is
a clear indication that the revenues for next year will increase
slightly over the current year’s sales. It’s therefore not likely
that the sales revenue for Target Corp. can increase greatly by
more than 2% next year, 2017. Some analysts are even
stipulating a decline of revenues but Target’s consensus panel
of analysts are estimating a slight increase. It was reported that
Target Corp. itself had cut its own sales forecasts after the last
quarter’s results fell below the expectations. The growth rate of
other revenues is expected to increase by about 1.46% similar to
the current year’s estimated increase of 1.4% compared to prior
2. year. The overall average sustained earnings growth rate for the
company is however projected to increase by about 6.8% in
2017.
Explanation of All Other Assumptions
Inputs (First Page)
% of Current Balance OR Forecast If Different
Explanation of Assumptions
Cost of Sales %
70.00%
Target's current cost of sales are $50321 while the sales are
$71603 for the past trailing 12 months ending July 30.
Selling/General/Administrative Expenses %
66.00%
If the SGA is less than 30% of the gross profit, the company is
in less competitive industry. If SGA is close to 100%, it's
operating in a very competitive industry.
Other Expenses %
11.00%
Other expenses in the 12 month trailing period ending 30 Jul,
2016 was 11% of the total gross profit.
Other Expenses%
6.80%
Income tax expense was 6.8% of the total gross profit in the 12
month trailing period ending 30 Jul, 2016
Cash %
7.00%
The cash & cash equivalents for Target Corp in the last 4
quarters ending July 30 is 7% of the total assets.
Accounts Receivable %
-
There is no issue of accounts receivables in the last 4 Quarters
ended July 30, 2016. This is basically because this is a retail
business. Manufacturing companies however can’t have zero
accounts receivables throughout the year.
Inventories %
23.000%
3. Target's Inventory are only 23% of the total assets but 66% of
the total current liabilities. The inventories have increasing
trend and are therefore likely to increase next year by around
6%.
Other Current Assets %
4.500%
Other current assets were 4.55% of the total assets for the 12
year period ended July 30.
Other Assets %
63.25%
Property, Plant & Equipment was 63.25% of the total assets for
the 4 Quarters ended July 30.
Other Assets %
2.32%
Other assets were 2.32% of the total assets in the last four
quarters.
Accounts Payable %
33.00%
The company has accounts payables amounting to 33% of the
total liabilities in the 12 month period ending July 30, 2016.
Notes Payable %
4.00%
The short-term/current long term debt was 4% as of July 20,
2016.
Other Current Liabilities %
0.50%
Other current liabilities were only 0.5% of the total liabilities in
the last 12 month period ending Jul 30.
Other Long-Term Liabilities %
45.00%
Commercial paper represented the highest percentage of the
company’s debt of 45% in the 12 month period ended July 30,
2016.
Other Long-Term Liabilities %
6.00%
Other long-term debt were 6% of the total liabilities.
4. Other Equity %
-5.00%
The company has been repurchasing stock which has led to the
negative 5% decrease of the total stockholders' equity.
Next Year Forecast
Growth Rate for Sales Revenues (%)
2.0%
The sales are estimated to increase by 2% in next year even
though the current quarter has experienced a decline of 5.7%
from last Quarter's. The current sales revenues for the 12 month
trailing period ended 30 Jul had increased by 1.6% over the
prior year’s sales revenues.
Growth Rate for Other Revenues (%)
1.46%
The growth of other revenues is estimated to be by a slight
increase of 1.46% from the current year's estimated growth rate.
New Long-Term Debt $ (+)
$1,962.0
The company is forecasting a possible increase of $1,962m over
the current long-term debt in 2017. In order for Target to
operate effectively, it basically obtains money for financing
operations through long-term debt.
Common Stock Dividends $ (+)
$2.36
The Company had a 10.55% increase over previous year.
Analysts expect an increase of 7.09% for next year to an
estimated $2.36. The current dividend rate is at $2.2.
(90% to Paid-in Cap. & 10% to Com. Stk.) New Common Stock
Issued $ (+)
$600.0
Target is expected to issue approximately 600 million shares of
common stock in 2017. The company has issued approximately
over 600 million shares of common stock over the last two
fiscal years, currently and it’s expected to be around that next
year.
(90% from Paid-in Cap. & 10% from Com. Stk.) Common Stock
5. Repurchased $ (-)
$106.0
Target would be expected to repurchase approximately 106
million shares of stock by the end of the second or third Quarter
of 2017. The price of the common stock repurchases next year is
likely to be around $70 per share.
Preferred Stock Issued $ (+)
$0.0
The company has 5 m preferred shares outstanding but none has
been issued so far.
Tax Rate % (+)
-0.9%
The tax rate is expected to drop further next year by
approximately 0.94% to around 30.66% due to increased tax
saving incentives. Target Corp. has been performing strategic
planning which would lead to further decrease in the effective
tax rate 2017.
Depreciation Rate as Percent of Gross Fixed Assets % (+)
3.7%
The depreciation rate is likely to increase by approximately
3.68 % as percent of Gross Fixed Assets. The depreciation rate
increases annually by approximately 3.7% using the straight-
line method.
Capital Investments / New Fixed Assets $ (+)
$0.0
It's not likely that the Company would acquire new fixed assets
while it's discontinuing some activities and selling some
invested assets in some regions.
Interest Expense for Short-Term & Long-Term Debt % (+)
0.56%
Target Corp doesn't have a specific trend of changes of interest
but the current interest rate is likely to increase slightly by
0.56% next year. Target Corp. has a good credit rating and a
good financial historical record which enables it to obtain lower
interest debts.
Interest Income % (+)
6. 0.0%
The company has not received any interest income and is thus
not likely to receive it next.
Explanation and Interpretation of Projected Financial
Statements
The cost of sales is currently at 70% of the total sales, this
leaves the company with a Gross profit of only 30%. The high
costs of sales for the trailing 12 months ended 30 Jul, 2016 was
$50,321 while the sales were $71, 603. The SG&A expenses
were 66% which is very high. According to Guru Focus, (2016)
high SG&A expenses above 30% mean the firm operates in a
very competitive environment as is the case with Target. The
inventories represent 23% of the total assets and 66% of the
current assets. Cash is only 7% of the total assets and 21% of
total current assets which shows that the company is not
efficient enough. The accounts payables of the company are
33% of the total liabilities. The notes payables are only 4% of
the total liabilities with a greater portion being other being
long-term debt of 45%.
Explanation an Interpretation of Overall Forecast Results &
Financial Ratios
The gross margin is only 30% which shows that the profitability
is not very high due to high costs of sales. The inventories
turnover ratio is currently at 1.3 which means the company is
overstocking to meet the unexpected demand and for high
seasons. Target and its competitors usually experience changes
in demand as the seasons change. The quick ratio for the
company is currently at 0.26 which is means Target is currently
unable to meet its short-term debts as and when they are due.
ROA is currently 7% which means the assets are utilized well
while the ROE is 22.6% which is also desirable. The ratio of
debt/equity for the company is currently 2.16 which shows that
there’s high leverage. The company majorly relies on the
financing from debt which is the main reason for this high ratio.
8. version 4.00
Russell Lundholm
Richard Sloan
Where to buy the latest 'Equity Valuation and Analysis'
textbook
Supplements to the textbook cases
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Financial StatementsFinancial Statements($000s)Data can be
entered manually in financial statements or as a block cut-and-
paste from the Case Data Sheet to the Raw Data Input section
below.Jump to Raw Data InputCompany Name and
TickerStarbucks CorporationSBUXLink to Form 10-KsCommon
Shares Outstanding1,485,100(in 000s at most recent fiscal year
end)Estimated
Price/Share=$47.53ActualActualActualActualActualForecastFor
ecastForecastForecastForecastForecastForecastForecastForecast
ForecastForecastForecastFiscal Year End (YYYY-MM-
DD)2007/10/012008/09/292009/09/282010/09/272011/09/26201
2/09/262013/09/262014/09/262015/09/262016/09/262017/09/26
2018/09/262019/09/262020/09/262021/09/262022/09/262023/09
/26Income StatementSales
(Net)11,700,40013,276,80014,866,80016,447,80019,162,70022,
090,44025,194,25628,424,83031,720,64035,009,11738,208,658
41,231,47143,987,17546,386,96848,348,13249,798,57651,292,5
33Cost of Goods
Sold(8,483,700)(9,701,100)(10,634,200)(11,458,200)(13,158,70
0)(15,169,129)(17,300,467)(19,518,847)(21,782,024)(24,040,16
5)(26,237,235)(28,312,949)(30,205,245)(31,853,142)(33,199,83
9)(34,195,834)(35,221,709)Gross
Profit3,216,7003,575,7004,232,6004,989,6006,004,0006,921,31
17,893,7898,905,9839,938,61610,968,95211,971,42312,918,521
13,781,93114,533,82715,148,29215,602,74116,070,823R&D
14. (Net)2,355,0002,658,9003,200,5003,519,0004,088,300Investme
nts479,300575,900554,800833,300664,500Intangibles433,50054
2,8001,137,7001,129,7002,095,800Other
Assets297,700242,0001,152,3001,102,2001,244,800Current
Debt00000Accounts
Payable540,000398,100491,700533,700684,200Income Taxes
Payable109,200138,300125,000272,000259,000Other Current
Liabilities1,426,6001,673,4004,760,6002,233,0002,710,300Lon
g-Term Debt549,500549,6001,299,4002,048,3002,347,500Other
Liabilities347,800334,700347,600385,300557,500Deferred
Taxes010,60010,1006,90067,800Minority
Interest2,4005,5002,1001,7001,800Preferred Stock00000Paid in
Common Capital
(Net)41,20040,100282,90040,10042,600Retained
Earnings4,343,7005,068,9004,197,3005,231,9005,775,400Comm
on Dividends0543,700668,600827,0001,016,200
Jump to Raw Data Input
Ratio AnalysisRatio AnalysisCompany NameStarbucks
CorporationActualActualActualActualActualForecastForecastFo
recastForecastForecastForecastForecastForecastForecastForecas
tForecastForecastFiscal Year End
Date2007/10/012008/09/292009/09/282010/09/272011/09/26201
2/09/262013/09/262014/09/262015/09/262016/09/262017/09/26
2018/09/262019/09/262020/09/262021/09/262022/09/262023/09
/26Annual Growth
RatesSales13.5%12.0%10.6%16.5%15.3%14.1%12.8%11.6%10.
4%9.1%7.9%6.7%5.5%4.2%3.0%3.0%Assets11.7%40.1%-
6.6%15.7%15.3%14.1%12.8%11.6%10.4%9.1%7.9%6.7%5.5%4
.2%3.0%3.0%Common Equity16.5%-
12.3%17.7%10.4%15.3%14.1%12.8%11.6%10.4%9.1%7.9%6.7
%5.5%4.2%3.0%3.0%Earnings11.1%-
99.4%24816.9%33.3%13.5%13.9%12.7%11.4%10.2%9.0%7.7%
6.5%5.3%4.1%2.8%3.0%Free Cash Flow to Investors-
156.8%0.0%111.1%153.2%19.0%17.6%16.2%14.9%13.5%12.2
%10.8%9.5%8.2%6.8%3.0%Sustainable Growth Rate-
13.8%25.5%31.4%31.5%31.3%31.1%30.9%30.7%30.5%30.3%3
15. 0.1%29.9%29.7%29.4%29.4%ProfitabilityReturn on
Equity0.2920.0020.4240.4970.5000.4960.4930.4900.4870.4830.
4800.4770.4730.4700.4660.466Return on Equity (b4 non-
recurring)0.248(0.018)0.3660.4190.4200.4170.4150.4120.4090.
4060.4030.4000.3970.3940.3910.391Return on Net Operating
Assets0.2650.0010.3220.3630.3630.3600.3580.3560.3530.3510.
3490.3460.3440.3410.3390.339Basic Dupont ModelNet Profit
Margin0.1060.1040.0010.1260.1440.1420.1410.1410.1410.1410.
1410.1400.1400.1400.1400.1390.139x Total Asset
Turnover1.7041.5071.4771.6521.6491.6411.6321.6241.6161.60
71.5981.5891.5811.5721.5621.562x Total
Leverage1.6412.0582.2842.0922.1392.1392.1392.1392.1392.139
2.1392.1392.1392.1392.1392.139= Return on
Equity0.2920.0020.4240.4970.5000.4960.4930.4900.4870.4830.
4800.4770.4730.4700.4660.466Advanced Dupont ModelNet
Operating
Margin0.1080.1060.0010.1280.1470.1440.1440.1440.1440.1440.
1430.1430.1430.1430.1430.1420.142x Net Operating Asset
Turnover2.5052.5982.5102.4742.5132.5002.4882.4752.4622.44
92.4362.4222.4092.3952.3812.381= Return on Net Operating
Assets0.2650.0010.3220.3630.3630.3600.3580.3560.3530.3510.
3490.3460.3440.3410.3390.339Net Borrowing Cost
(NBC)0.041(0.000)0.0250.0240.0240.0240.0240.0230.0230.023
0.0230.0230.0230.0230.0230.023Spread (RNOA -
NBC)0.2240.0020.2970.3390.3390.3370.3350.3320.3300.3280.3
250.3230.3200.3180.3150.315Financial Leverage
(LEV)0.1170.1940.3440.3970.4040.4040.4040.4040.4040.4040.
4040.4040.4040.4040.4040.404ROE = RNOA +
LEV*Spread0.2920.0020.4240.4970.5000.4960.4930.4900.4870.
4830.4800.4770.4730.4700.4660.466Margin AnalysisGross
Margin0.2750.2690.2850.3030.3130.3130.3130.3130.3130.3130.
3130.3130.3130.3130.3130.3130.313EBITDA
Margin0.1770.1780.1930.2150.2240.2240.2240.2240.2240.2240.
2240.2240.2240.2240.2240.2240.224EBIT
Margin0.1300.1350.1480.1700.1750.1720.1720.1720.1710.1710.
1710.1710.1700.1700.1700.1690.169Net Operating Margin (b4
16. non-
rec.)0.0900.090(0.006)0.1110.1240.1220.1220.1210.1210.1210.
1210.1210.1200.1200.1200.1200.120Net Operating
Margin0.1080.1060.0010.1280.1470.1440.1440.1440.1440.1440.
1430.1430.1430.1430.1430.1420.142Turnover AnalysisNet
Operating Asset
Turnover2.5052.5982.5102.4742.5132.5002.4882.4752.4622.44
92.4362.4222.4092.3952.3812.381Net Working Capital
Turnover7.15914.26826.87320.95229.35229.20629.05828.90828
.75728.60428.44928.29328.13427.97427.81227.812Avge Days
to Collect
Receivables11.99212.85613.23112.85712.78812.85212.91712.9
8413.05213.12213.19313.26613.34113.41713.49613.496Avge
Inventory Holding
Period41.52440.37635.07433.24933.83634.00534.17834.35534.
53534.72034.90935.10235.30035.50235.71035.710Avge Days to
Pay
Payables17.16015.46016.36116.61917.49117.59417.70017.8091
7.92018.03418.15118.27018.39318.51918.64818.648PP&E
Turnover5.2965.0754.8965.0385.0204.9954.9704.9444.9184.89
24.8664.8394.8124.7844.7564.756Analysis of Leverage- Long-
Term Capital StructureDebt to Equity
Ratio0.1250.1080.2900.3890.4030.4030.4030.4030.4030.4030.4
030.4030.4030.4030.4030.4030.403FFO to Total
Debt3.5720.7321.7031.7861.7311.7201.7091.6981.6871.6761.66
51.6531.6421.6301.6181.618CFO to Total
Debt3.0544.0770.2541.8771.7861.7711.7561.7411.7261.7101.69
41.6781.6621.6461.6291.629Analysis of Leverage- Short-Term
LiquidityCurrent
Ratio1.8281.9001.0171.3721.1911.1911.1911.1911.1911.1911.1
911.1911.1911.1911.1911.1911.191Quick
Ratio1.1741.1420.7060.8140.6380.6380.6380.6380.6380.6380.6
380.6380.6380.6380.6380.6380.638EBIT Interest
Coverage78.18554.639125.41543.56647.70246.95446.65046.34
346.03145.71745.39845.07644.75044.42044.08643.74843.748E
BITDA Interest
17. Coverage106.39072.394162.66555.24260.94861.11360.80960.5
0260.19059.87659.55759.23558.90958.57958.24557.90757.907
Fiscal
Year2011201220132014201520162017201820192020202120222
0232024202520262027
Cash Flow AnalysisCash Flow Analysis($000)Company
NameStarbucks
CorporationActualActualActualActualForecastForecastForecast
ForecastForecastForecastForecastForecastForecastForecastForec
astForecastFiscal Year End
Date2008/09/292009/09/282010/09/272011/09/262012/09/26201
3/09/262014/09/262015/09/262016/09/262017/09/262018/09/26
2019/09/262020/09/262021/09/262022/09/262023/09/26Pro
Forma Statement of Cash FlowsOperating:Net
Income1,383,8008,3002,068,1002,757,4003,128,5893,563,2204,
014,4134,473,3684,929,7785,372,1235,788,0856,165,0616,490,
7536,753,8076,944,4387,152,771+Depreciation &
Amortization580,600655,600748,400933,8001,147,5981,315,38
71,491,6001,673,1541,856,3182,036,8052,209,9012,370,6512,5
14,0692,635,3842,730,2892,812,198+Increase in Deferred
Taxes10,600(500)(3,200)60,90010,35910,98211,43011,66111,63
511,32010,6959,7508,4916,9395,1325,286+Increase in Other
Liabilities(13,100)12,90037,700172,20085,17790,29993,98795,
88595,67293,08487,94380,17269,81757,05642,19843,464+Mino
rity Interest in
Earnings900500(400)1,9002,1562,4552,7663,0823,3973,7023,9
884,2484,4724,6544,7854,929+Preferred
Dividends0000000000000000=Funds From
Operations1,962,800676,8002,850,6003,926,2004,373,8784,982,
3435,614,1966,257,1506,896,8007,517,0358,100,6138,629,8819
,087,6029,457,8409,726,84210,018,647-Increase in
Receivables(99,400)(75,500)(69,600)(88,000)(109,851)(116,458
)(121,214)(123,661)(123,386)(120,049)(113,418)(103,396)(90,0
42)(73,584)(54,422)(56,054)-Increase in
Inventory(275,700)130,30020,300(215,500)(199,596)(211,600)(
220,242)(224,689)(224,189)(218,126)(206,078)(187,868)(163,6
18. 04)(133,701)(98,883)(101,849)-Increase in Other Current
Assets(43,300)(129,800)(38,000)(112,900)(109,378)(115,956)(1
20,691)(123,128)(122,854)(119,532)(112,929)(102,950)(89,654)
(73,267)(54,187)(55,813)+Increase in Accounts
Payable(141,900)93,60042,000150,500104,534110,821115,3471
17,676117,414114,239107,92998,39285,68470,02351,78853,341
+Increase in Taxes
Payable29,100(13,300)147,000(13,000)39,57141,95143,66444,5
4644,44743,24440,85637,24632,43526,50719,60420,192+Increa
se in Other Curr.
Liabilities246,8003,087,200(2,527,600)477,300414,088438,992
456,920466,147465,110452,531427,535389,756339,418277,380
205,145211,300=Cash From
Operations1,678,4003,769,300424,7004,124,6004,513,2475,130,
0945,767,9816,414,0407,053,3417,669,3428,244,5078,761,0619
,201,8409,551,1979,795,88710,089,764Investing:-Capital
Expenditures(884,500)(1,197,200)(1,066,900)(1,503,100)(1,772
,222)(1,977,576)(2,180,832)(2,376,304)(2,557,904)(2,719,417)(
2,854,809)(2,958,571)(3,026,057)(3,053,792)(3,039,737)(3,130,
929)-Increase in
Investments(96,600)21,100(278,500)168,800(101,524)(107,630)
(112,026)(114,288)(114,034)(110,950)(104,821)(95,559)(83,217
)(68,007)(50,297)(51,806)-Purchases of
Intangibles(109,300)(594,900)8,000(966,100)(320,203)(339,460
)(353,324)(360,459)(359,657)(349,930)(330,601)(301,388)(262,
462)(214,490)(158,633)(163,392)-Increase in Other
Assets55,700(910,300)50,100(142,600)(190,185)(201,622)(209,
857)(214,094)(213,618)(207,841)(196,361)(179,009)(155,889)(
127,396)(94,220)(97,047)=Cash From
Investing(1,034,700)(2,681,300)(1,287,300)(2,443,000)(2,384,1
35)(2,626,289)(2,856,039)(3,065,145)(3,245,213)(3,388,137)(3,
486,592)(3,534,527)(3,527,626)(3,463,685)(3,342,887)(3,443,1
74)Financing:+Increase in
Debt100749,800748,900299,200358,659380,229395,757403,749
402,850391,955370,306337,584293,983240,250177,685183,015
-Dividends Paid to Minority
19. Interest2,200(3,900)0(1,800)(1,881)(2,164)(2,463)(2,773)(3,088
)(3,401)(3,704)(3,989)(4,247)(4,470)(4,649)(4,788)-Dividends
Paid on Preferred0000000000000000+Increase in Pref.
Stock0000000000000000-Dividends Paid on
Common(543,700)(668,600)(827,000)(1,016,200)(1,152,996)(1,
313,173)(1,479,454)(1,648,595)(1,816,799)(1,979,819)(2,133,1
15)(2,272,044)(2,392,074)(2,489,018)(2,559,272)(2,636,050)+/-
Net Issuance of Common
Stock(1,100)242,800(242,800)2,500(1,086,699)(1,307,695)(1,55
4,122)(1,824,130)(2,114,563)(2,420,890)(2,737,212)(3,056,355)
(3,370,077)(3,669,359)(3,944,795)(4,063,139)+/-Clean Surplus
Plug
(Ignore)(114,900)(211,300)(206,500)(1,197,700)000000000000
=Cash From
Financing(657,400)108,800(527,400)(1,914,000)(1,882,918)(2,2
42,804)(2,640,282)(3,071,749)(3,531,599)(4,012,155)(4,503,72
6)(4,994,805)(5,472,414)(5,922,597)(6,331,031)(6,520,962)Net
Change in
Cash(13,700)1,196,800(1,390,000)(232,400)246,195261,001271
,660277,146276,530269,051254,190231,728201,800164,915121,
968125,628+ Beginning Cash
Balance2,050,7002,037,0003,233,8001,843,8001,611,4001,857,
5952,118,5962,390,2572,667,4032,943,9323,212,9833,467,1733
,698,9013,900,7014,065,6164,187,584= Ending Cash
Balance2,037,0003,233,8001,843,8001,611,4001,857,5952,118,
5962,390,2572,667,4032,943,9323,212,9833,467,1733,698,9013
,900,7014,065,6164,187,5844,313,212Free Cash Flow to
Common EquityNet
Income1,383,8008,3002,068,1002,757,4003,128,5893,563,2204,
014,4134,473,3684,929,7785,372,1235,788,0856,165,0616,490,
7536,753,8076,944,4387,152,771- Increase in Common
Equity(724,100)628,800(791,800)(546,000)(888,893)(942,352)(
980,837)(1,000,643)(998,417)(971,415)(917,758)(836,661)(728,
603)(595,430)(440,370)(453,581)+/-Clean Surplus Plug
(Ignore)(114,900)(211,300)(206,500)(1,197,700)000000000000
=Free Cash Flow to Common
20. Equity544,800425,8001,069,8001,013,7002,239,6962,620,8683,
033,5763,472,7253,931,3614,400,7094,870,3275,328,3995,762,
1516,158,3776,504,0676,699,189Computation based on
SCF:+Cash From
Operations1,678,4003,769,300424,7004,124,6004,513,2475,130,
0945,767,9816,414,0407,053,3417,669,3428,244,5078,761,0619
,201,8409,551,1979,795,88710,089,764-Increase in
Cash13,700(1,196,800)1,390,000232,400(246,195)(261,001)(27
1,660)(277,146)(276,530)(269,051)(254,190)(231,728)(201,800)
(164,915)(121,968)(125,628)+Cash From
Investing(1,034,700)(2,681,300)(1,287,300)(2,443,000)(2,384,1
35)(2,626,289)(2,856,039)(3,065,145)(3,245,213)(3,388,137)(3,
486,592)(3,534,527)(3,527,626)(3,463,685)(3,342,887)(3,443,1
74)+Increase in
Debt100749,800748,900299,200358,659380,229395,757403,749
402,850391,955370,306337,584293,983240,250177,685183,015
-Dividends Paid to Minority
Interest2,200(3,900)0(1,800)(1,881)(2,164)(2,463)(2,773)(3,088
)(3,401)(3,704)(3,989)(4,247)(4,470)(4,649)(4,788)-Dividends
Paid on Preferred0000000000000000+Increase in Preferred
Stock0000000000000000+/-Clean Surplus Plug
(Ignore)(114,900)(211,300)(206,500)(1,197,700)000000000000
=Free Cash Flow to Common
Equity544,800425,8001,069,8001,013,7002,239,6962,620,8683,
033,5763,472,7253,931,3614,400,7094,870,3275,328,3995,762,
1516,158,3776,504,0676,699,189Financing Flows:+Dividends
Paid543,700668,600827,0001,016,2001,152,9961,313,1731,479,
4541,648,5951,816,7991,979,8192,133,1152,272,0442,392,0742
,489,0182,559,2722,636,050-Net Issuance of Common
Stock1,100(242,800)242,800(2,500)1,086,6991,307,6951,554,12
21,824,1302,114,5632,420,8902,737,2123,056,3553,370,0773,6
69,3593,944,7954,063,139= Free Cash Flow to Common
Equity544,800425,8001,069,8001,013,7002,239,6962,620,8683,
033,5763,472,7253,931,3614,400,7094,870,3275,328,3995,762,
1516,158,3776,504,0676,699,189Free Cash Flow to all
InvestorsNet Operating
21. Income1,406,6908,1262,109,6472,809,1413,188,0453,631,3534,
091,6554,559,9925,025,8625,477,5245,902,4156,287,6776,620,
7556,890,0487,085,5487,298,114- Increase in Net Operating
Assets(727,300)(117,600)(1,540,300)(845,300)(1,247,827)(1,32
2,872)(1,376,897)(1,404,701)(1,401,576)(1,363,670)(1,288,348)
(1,174,504)(1,022,811)(835,864)(618,191)(636,737)+/-Clean
Surplus Plug
(Ignore)(114,900)(211,300)(206,500)(1,197,700)000000000000
=Free Cash Flow to
Investors564,490(320,774)362,847766,1411,940,2182,308,4822,
714,7583,155,2913,624,2864,113,8544,614,0685,113,1735,597,
9446,054,1846,467,3576,661,377Computation based on
SCF:Cash From
Operations1,678,4003,769,300424,7004,124,6004,513,2475,130,
0945,767,9816,414,0407,053,3417,669,3428,244,5078,761,0619
,201,8409,551,1979,795,88710,089,764-Increase in Operating
Cash13,700(1,196,800)1,390,000232,400(246,195)(261,001)(27
1,660)(277,146)(276,530)(269,051)(254,190)(231,728)(201,800)
(164,915)(121,968)(125,628)+Cash from
Investing(1,034,700)(2,681,300)(1,287,300)(2,443,000)(2,384,1
35)(2,626,289)(2,856,039)(3,065,145)(3,245,213)(3,388,137)(3,
486,592)(3,534,527)(3,527,626)(3,463,685)(3,342,887)(3,443,1
74)+Interest
Expense32,70017,60064,10070,50081,05192,901105,346118,16
9131,105143,852156,077167,431177,560186,128192,831198,61
5-Tax Shield on
Interest(10,710)(18,274)(22,153)(20,659)(23,750)(27,223)(30,8
70)(34,627)(38,418)(42,153)(45,736)(49,062)(52,030)(54,541)(
56,505)(58,200)+/-Clean Surplus Plug
(Ignore)(114,900)(211,300)(206,500)(1,197,700)000000000000
=Free Cash Flow to
Investors564,490(320,774)362,847766,1411,940,2182,308,4822,
714,7583,155,2913,624,2864,113,8544,614,0685,113,1735,597,
9446,054,1846,467,3576,661,377Financing Flows:+Dividends
on Common
Stock543,700668,600827,0001,016,2001,152,9961,313,1731,47
22. 9,4541,648,5951,816,7991,979,8192,133,1152,272,0442,392,07
42,489,0182,559,2722,636,050+Interest
Expense32,70017,60064,10070,50081,05192,901105,346118,16
9131,105143,852156,077167,431177,560186,128192,831198,61
5-Tax Shield on
Interest(10,710)(18,274)(22,153)(20,659)(23,750)(27,223)(30,8
70)(34,627)(38,418)(42,153)(45,736)(49,062)(52,030)(54,541)(
56,505)(58,200)+Dividends on Preferred
Stock0000000000000000+Dividends Paid to Minority
Interest(2,200)3,90001,8001,8812,1642,4632,7733,0883,4013,7
043,9894,2474,4704,6494,788-Net Issuance of Common
Stock1,100(242,800)242,800(2,500)1,086,6991,307,6951,554,12
21,824,1302,114,5632,420,8902,737,2123,056,3553,370,0773,6
69,3593,944,7954,063,139-Net Issuance of
Debt(100)(749,800)(748,900)(299,200)(358,659)(380,229)(395,
757)(403,749)(402,850)(391,955)(370,306)(337,584)(293,983)(
240,250)(177,685)(183,015)-Net Issuance of Preferred
Stock0000000000000000=Free Cash Flow to
Investors564,490(320,774)362,847766,1411,940,2182,308,4822,
714,7583,155,2913,624,2864,113,8544,614,0685,113,1735,597,
9446,054,1846,467,3576,661,377Traditional Computation of
FCF:EBIT1,786,7002,207,3002,792,6003,363,0003,805,6814,33
3,8524,882,0225,439,4795,993,6806,530,6187,035,3197,492,47
47,887,1558,205,5868,435,9108,688,987-Taxes on
EBIT(685,110)220,426(1,114,153)(1,164,359)(1,321,410)(1,505
,157)(1,695,947)(1,890,067)(2,083,166)(2,270,375)(2,446,487)(
2,606,174)(2,744,231)(2,855,850)(2,936,883)(3,024,989)+Incre
ase in Deferred
Taxes10,600(500)(3,200)60,90010,35910,98211,43011,66111,63
511,32010,6959,7508,4916,9395,1325,286=
NOPLAT1,112,1902,427,2261,675,2472,259,5412,494,6292,839
,6773,197,5053,561,0723,922,1504,271,5644,599,5274,896,050
5,151,4145,356,6755,504,1585,669,283+Depreciation &
Amortization580,600655,600748,400933,8001,147,5981,315,38
71,491,6001,673,1541,856,3182,036,8052,209,9012,370,6512,5
14,0692,635,3842,730,2892,812,198+Non-Operating Income
23. (Loss)305,100(2,419,600)431,200610,500703,774802,658905,5
801,010,5801,115,3471,217,2811,313,5841,401,3771,477,8321,
540,3121,586,5211,634,117+Other Income
(Loss)0000000000000000+Ext. Items & Disc.
Ops.0000000000000000=Gross Cash
Flow1,997,890663,2262,854,8473,803,8414,346,0024,957,7225,
594,6856,244,8076,893,8167,525,6508,123,0128,668,0789,143,
3159,532,3709,820,96910,115,598-Increase in Working
Capital(270,700)1,895,700(1,035,900)430,800(106,826)(113,25
1)(117,876)(120,256)(119,988)(116,743)(110,295)(100,549)(87,
563)(71,558)(52,923)(54,511)-Capital
Expenditures(884,500)(1,197,200)(1,066,900)(1,503,100)(1,772
,222)(1,977,576)(2,180,832)(2,376,304)(2,557,904)(2,719,417)(
2,854,809)(2,958,571)(3,026,057)(3,053,792)(3,039,737)(3,130,
929)-Increase in
Investments(96,600)21,100(278,500)168,800(101,524)(107,630)
(112,026)(114,288)(114,034)(110,950)(104,821)(95,559)(83,217
)(68,007)(50,297)(51,806)-Purchases of
Intangibles(109,300)(594,900)8,000(966,100)(320,203)(339,460
)(353,324)(360,459)(359,657)(349,930)(330,601)(301,388)(262,
462)(214,490)(158,633)(163,392)-Increase in Other
Assets55,700(910,300)50,100(142,600)(190,185)(201,622)(209,
857)(214,094)(213,618)(207,841)(196,361)(179,009)(155,889)(
127,396)(94,220)(97,047)+Increase in Other
Liabilities(13,100)12,90037,700172,20085,17790,29993,98795,
88595,67293,08487,94380,17269,81757,05642,19843,464+/-
Clean Surplus Plug
(Ignore)(114,900)(211,300)(206,500)(1,197,700)000000000000
=Free Cash Flow to
Investors564,490(320,774)362,847766,1411,940,2182,308,4822,
714,7583,155,2913,624,2864,113,8544,614,0685,113,1735,597,
9446,054,1846,467,3576,661,377Analysis of Earnings
Quality(Red Shading = Quality Flag)Current Op.
Accruals/NOA0.099(0.853)0.952(0.036)(0.021)(0.020)(0.018)(0
.016)(0.014)(0.013)(0.011)(0.009)(0.008)(0.006)(0.004)(0.004)
+ Non-Current Op.
24. Accruals/NOA0.1590.5540.1980.2330.1740.1600.1460.1320.118
0.1040.0900.0760.0620.0480.0340.034= Operating
Accruals/NOA0.257(0.298)1.1500.1970.1530.1410.1280.1160.1
040.0910.0790.0670.0550.0420.0300.030Sales
Growth0.1350.1200.1060.1650.1530.1410.1280.1160.1040.0910
.0790.0670.0550.0420.0300.030- NOA Turnover
Growth0.108(0.373)0.9430.0270.0000.000(0.000)(0.000)0.0000.
000(0.000)0.000(0.000)0.000(0.000)0.000-
Interaction0.014(0.045)0.1000.0040.0000.000(0.000)(0.000)0.0
000.000(0.000)0.000(0.000)0.000(0.000)0.000= Operating
Accruals/NOA0.257(0.298)1.1500.1970.1530.1410.1280.1160.1
040.0910.0790.0670.0550.0420.0300.030Fiscal
Year2012201320142015201620172018201920202021202220232
024202520262027
Credit AnalysisCredit AnalysisCompany NameStarbucks
CorporationActualActualActualActualActualForecastForecastFo
recastForecastForecastForecastForecastForecastForecastForecas
tForecastForecastFiscal Year End
Date2007/10/012008/09/292009/09/282010/09/272011/09/26201
2/09/262013/09/262014/09/262015/09/262016/09/262017/09/26
2018/09/262019/09/262020/09/262021/09/262022/09/262023/09
/26Analysis of Leverage- Long-Term Capital StructureDebt to
Equity
Ratio0.1250.1080.2900.3890.4030.4030.4030.4030.4030.4030.4
030.4030.4030.4030.4030.4030.403FFO to Total
Debt3.5720.7321.7031.7861.7311.7201.7091.6981.6871.6761.66
51.6531.6421.6301.6181.618CFO to Total
Debt3.0544.0770.2541.8771.7861.7711.7561.7411.7261.7101.69
41.6781.6621.6461.6291.629Analysis of Leverage- Short-Term
LiquidityCurrent
Ratio1.8281.9001.0171.3721.1911.1911.1911.1911.1911.1911.1
911.1911.1911.1911.1911.1911.191Quick
Ratio1.1741.1420.7060.8140.6380.6380.6380.6380.6380.6380.6
380.6380.6380.6380.6380.6380.638EBIT Interest
Coverage78.18554.639125.41543.56647.70246.95446.65046.34
346.03145.71745.39845.07644.75044.42044.08643.74843.748E
25. BITDA Interest
Coverage106.39072.394162.66555.24260.94861.11360.80960.5
0260.19059.87659.55759.23558.90958.57958.24557.90757.907
Analysis of Credit RiskNet Income to Total
Assets0.1700.1680.0010.1920.2220.2180.2180.2180.2170.2170.
2170.2160.2160.2160.2150.2150.215implied default
probability2.0%2.0%5.5%2.0%2.0%2.0%2.0%2.0%2.0%2.0%2.0
%2.0%2.0%2.0%2.0%2.0%2.0%Total Liabilities to Total
Assets0.4040.3780.6110.5100.5320.5320.5320.5320.5320.5320.
5320.5320.5320.5320.5320.5320.532implied default
probability3.0%2.5%4.5%3.5%3.5%3.5%3.5%3.5%3.5%3.5%3.5
%3.5%3.5%3.5%3.5%3.5%3.5%Quick
Ratio1.1741.1420.7060.8140.6380.6380.6380.6380.6380.6380.6
380.6380.6380.6380.6380.6380.638implied default
probability4.0%4.0%5.0%4.2%5.0%5.0%5.0%5.0%5.0%5.0%5.0
%5.0%5.0%5.0%5.0%5.0%5.0%EBIT to Interest
Expense78.1854.64125.4143.5747.7046.9546.6546.3446.0345.7
245.4045.0844.7544.4244.0943.7543.75implied default
probability1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0%1.0
%1.0%1.0%1.0%1.0%1.0%1.0%Inventory Holding
Period41.5546.7138.1434.7536.2436.2436.2436.2436.2436.2436
.2436.2436.2436.2436.2436.2436.24implied default
probability4.2%4.2%4.2%4.2%4.2%4.2%4.2%4.2%4.2%4.2%4.2
%4.2%4.2%4.2%4.2%4.2%4.2%Annual Sales
Growth0.0%13.5%12.0%10.6%16.5%15.3%14.1%12.8%11.6%1
0.4%9.1%7.9%6.7%5.5%4.2%3.0%3.0%implied default
probability4.2%3.0%3.0%3.0%3.2%3.0%3.0%3.0%3.0%3.0%3.0
%3.0%3.0%3.0%3.2%3.2%3.2%Average Implied Default
Probability3.1%2.8%3.9%3.0%3.2%3.1%3.1%3.1%3.1%3.1%3.
1%3.1%3.1%3.1%3.2%3.2%3.2%Fiscal
Year2011201220132014201520162017201820192020202120222
0232024202520262027Lookup Table of default
probabilitydecile 1min decile 2min decile 3min decile 4min
decile 5min decile 6min decile 7min decile 8min decile 9min
decile 10NI to TA thresholds-0.448-0.161-
0.0490.0010.0220.0380.0560.0790.118NI to TA default
26. rates0.0830.080.0720.0550.0450.0300.0250.0200.0200.020TL to
TA
thresholds0.1750.2830.3850.4760.5580.6330.7090.8161.030TL
to TA default
rates0.020.0220.0250.0300.0350.0450.0550.0700.0900.100Quic
k Ratio
thresholds0.3820.5220.8090.9941.2001.4701.8902.5304.550Qui
ck Ratio default
rates0.090.0650.050.0420.0400.0350.0250.0200.0150.010EBIT
to Int thresholds-17.4-3.6-
0.1391.252.2103.3805.2109.16023.800EBIT to Int default
rates0.0750.090.0850.0700.0500.0300.0210.0180.0150.010Inv
Holding
thresholds0.3652.5614.2431.395070.08091.980121.540174.470I
nv Holding default
rates0.030.0350.0390.0400.0420.0450.0490.0550.0600.070Sales
Growth thresholds-0.203-
0.0630.0030.050.0980.1580.2440.3980.797Sales Growth default
rates0.0690.0550.0420.0320.0300.0300.0320.0420.0500.065
Forecasting AssumptionsForecasting AssumptionsCompany
NameStarbucks CorporationTERMINALEstimated
Price/Share=$47.53YEARActualActualActualActualActualForec
astForecastForecastForecastForecastForecastForecastForecastFo
recastForecastForecastForecastFiscal Year End
Date2007/10/012008/09/292009/09/282010/09/272011/09/26201
2/09/262013/09/262014/09/262015/09/262016/09/262017/09/26
2018/09/262019/09/262020/09/262021/09/262022/09/262023/09
/26Implied Return on
Equity0.2920.0020.4240.4970.5000.4960.4930.4900.4870.4830.
4800.4770.4730.4700.4660.466Income Statement
AssumptionsSales
Growth13.5%12.0%10.6%16.5%15.3%14.1%12.8%11.6%10.4%
9.1%7.9%6.7%5.5%4.2%3.0%3.0%Cost of Goods
Sold/Sales72.5%73.1%71.5%69.7%68.7%68.7%68.7%68.7%68.
7%68.7%68.7%68.7%68.7%68.7%68.7%68.7%68.7%R&D/Sales
0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0
27. %0.0%0.0%0.0%0.0%SG&A/Sales9.8%9.1%9.2%8.8%8.9%8.9
%8.9%8.9%8.9%8.9%8.9%8.9%8.9%8.9%8.9%8.9%8.9%Dep&
Amort/Avge PP&E and
Intang.19.4%17.4%16.7%17.2%17.2%17.2%17.2%17.2%17.2%1
7.2%17.2%17.2%17.2%17.2%17.2%17.2%Net Interest
Expense/Avge Net
Debt6.0%1.9%3.8%3.2%3.2%3.2%3.2%3.2%3.2%3.2%3.2%3.2
%3.2%3.2%3.2%3.2%Non-Operating Income/Sales2.6%2.3%-
16.3%2.6%3.2%3.2%3.2%3.2%3.2%3.2%3.2%3.2%3.2%3.2%3.
2%3.2%3.2%Effective Tax
Rate31.1%32.8%103.8%34.6%29.3%29.3%29.3%29.3%29.3%29
.3%29.3%29.3%29.3%29.3%29.3%29.3%29.3%Minority
Interest/After Tax Income0.2%0.1%5.7%-
0.0%0.1%0.1%0.1%0.1%0.1%0.1%0.1%0.1%0.1%0.1%0.1%0.1
%0.1%Other
Income/Sales0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
0.0%0.0%0.0%0.0%0.0%0.0%0.0%Ext. Items & Disc.
Ops./Sales0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0
%0.0%0.0%0.0%0.0%0.0%0.0%Pref. Dividends/Avge Pref.
Stock0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0
%0.0%0.0%0.0%0.0%Balance Sheet AssumptionsWorking
Capital AssumptionsEnding Operating
Cash/Sales17.5%15.3%21.8%11.2%8.4%8.4%8.4%8.4%8.4%8.4
%8.4%8.4%8.4%8.4%8.4%8.4%8.4%Ending
Receivables/Sales3.3%3.7%3.8%3.8%3.8%3.8%3.8%3.8%3.8%3
.8%3.8%3.8%3.8%3.8%3.8%3.8%3.8%Ending
Inventories/COGS11.4%12.8%10.4%9.5%9.9%9.9%9.9%9.9%9.
9%9.9%9.9%9.9%9.9%9.9%9.9%9.9%9.9%Ending Other
Current
Assets/Sales3.3%3.3%3.8%3.7%3.7%3.7%3.7%3.7%3.7%3.7%3
.7%3.7%3.7%3.7%3.7%3.7%3.7%Ending Accounts
Payable/COGS6.4%4.1%4.6%4.7%5.2%5.2%5.2%5.2%5.2%5.2
%5.2%5.2%5.2%5.2%5.2%5.2%5.2%Ending Taxes
Payable/Sales0.9%1.0%0.8%1.7%1.4%1.4%1.4%1.4%1.4%1.4%
1.4%1.4%1.4%1.4%1.4%1.4%1.4%Ending Other Current
Liabs/Sales12.2%12.6%32.0%13.6%14.1%14.1%14.1%14.1%14
28. .1%14.1%14.1%14.1%14.1%14.1%14.1%14.1%14.1%Other
Operating Asset AssumptionsEnding Net
PP&E/Sales20.1%20.0%21.5%21.4%21.3%21.3%21.3%21.3%21
.3%21.3%21.3%21.3%21.3%21.3%21.3%21.3%21.3%Ending
Investments/Sales4.1%4.3%3.7%5.1%3.5%3.5%3.5%3.5%3.5%3
.5%3.5%3.5%3.5%3.5%3.5%3.5%3.5%Ending
Intangibles/Sales3.7%4.1%7.7%6.9%10.9%10.9%10.9%10.9%1
0.9%10.9%10.9%10.9%10.9%10.9%10.9%10.9%10.9%Ending
Other
Assets/Sales2.5%1.8%7.8%6.7%6.5%6.5%6.5%6.5%6.5%6.5%6
.5%6.5%6.5%6.5%6.5%6.5%6.5%Other Operating Liability
AssumptionsOther
Liabilities/Sales3.0%2.5%2.3%2.3%2.9%2.9%2.9%2.9%2.9%2.
9%2.9%2.9%2.9%2.9%2.9%2.9%2.9%Deferred
Taxes/Sales0.0%0.1%0.1%0.0%0.4%0.4%0.4%0.4%0.4%0.4%0.
4%0.4%0.4%0.4%0.4%0.4%0.4%Financing AssumptionsCurrent
Debt/Total
Assets0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.
0%0.0%0.0%0.0%0.0%0.0%Long-Term Debt/Total
Assets7.5%6.7%11.3%19.0%18.9%18.9%18.9%18.9%18.9%18.
9%18.9%18.9%18.9%18.9%18.9%18.9%18.9%Minority
Interest/Total
Assets0.0%0.1%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.
0%0.0%0.0%0.0%0.0%0.0%Preferred Stock/Total
Assets0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.
0%0.0%0.0%0.0%0.0%0.0%Dividend Payout
Ratio0.0%39.3%8055.4%40.0%36.9%36.9%36.9%36.9%36.9%3
6.9%36.9%36.9%36.9%36.9%36.9%36.9%36.9%
Valuation ParametersValuation ParametersEstimated
Price/Share=$47.53Company Name:Starbucks
CorporationRequired Valuation Parameters (to compute value of
common equity):Enter Cost of Equity Capital:10.00%Enter
Value of Contingent Claims on Common Equity ($000):0Enter
Date of Valuation:2013/01/20Enter Dilution Factor for Splits
Occurring Since Latest Fiscal Year End:1.00Optional Valuation
Parameters (to compute value to all investors):Enter Cost of Net
29. Debt:8.00%Enter Cost of Preferred Stock:9.00%Enter Cost of
Minority Interest:10.00%Adjust the Weighted Average Cost of
Capital Input9.3720%upsuch that the two equity values below
are approximately equal:Equity Value computed directlyEquity
Value computed indirectlyapproximate weighted averagefrom
flows to equityholders:as the Entity Value less non-equity
claims:cost of capital to use as starting point:47.5352.3910.11%
Residual Income ValuationsResidual Income
Valuation($000)Company NameStarbucks CorporationMost
Recent Fiscal Year End9/26/11Date of Valuation1/20/13Cost of
Common Equity10.00%Teriminal Growth Rate3.00%Fiscal Year
of
Forecast2012/09/262013/09/262014/09/262015/09/262016/09/26
2017/09/262018/09/262019/09/262020/09/262021/09/262022/09
/262023/09/26(6,113,812)Valuation to Common EquityNet
Income3,128,5893,563,2204,014,4134,473,3684,929,7785,372,1
235,788,0856,165,0616,490,7536,753,8076,944,4387,152,771Co
mmon Equity at Beginning of
Year5,818,0006,706,8937,649,2458,630,0819,630,72410,629,14
111,600,55612,518,31413,354,97514,083,57814,679,00815,119,
378Residual
Income2,546,7892,892,5313,249,4883,610,3603,966,7064,309,2
094,628,0304,913,2295,155,2565,345,4505,476,5375,640,833Pr
esent Value of Residual
Income2,315,2622,390,5212,441,3892,465,9242,463,0122,432,4
362,374,9112,292,0582,186,3322,060,9021,919,4931,797,343Pr
esent Value Beyond 10 Years30,163,457Present Value of First
10 Years23,422,748Common Equity as
of9/26/115,818,000Forecast Equity Value Before Time
Adj.59,404,204Forecasted Value as of Valuation
Date70,587,046Less Value of Contingent Equity Claims0Value
Attributable to Common Equity70,587,046Common Shares
Outstanding at BS Date1,485,100Equivalent Shares at Valuation
Date1,485,100Forecast Price/Share$47.53Valuation to All
InvestorsCost of Debt8.00%Cost of Preferred Stock9.00%Cost
of Minority Interest10.00%After Tax Weighted Average Cost of
30. Capital9.37%Net Interest Expense to Net
Debtholders81,05192,901105,346118,169131,105143,852156,07
7167,431177,560186,128192,831198,615Beginning Book Value
of
Debt2,347,5002,706,1593,086,3873,482,1443,885,8934,288,743
4,680,6995,051,0045,388,5885,682,5715,922,8216,100,505Resi
dual Interest
Expense(106,749)(123,592)(141,565)(160,403)(179,766)(199,24
7)(218,378)(236,650)(253,527)(268,478)(280,995)(289,425)Pres
ent Value of Residual Interest
Income(98,842)(105,960)(112,379)(117,901)(122,346)(125,560)
(127,422)(127,855)(126,827)(124,357)(120,514)(114,935)Value
of Debt(1,445,049)Dividends to Preferred
Stockholders000000000000Beginning Book Value of Preferred
Stock000000000000Residual Income to Preferred
Stock000000000000Present Value of Preferred Residual
Income000000000000Value of Preferred Stock0Minority
Interest in
Earnings2,1562,4552,7663,0823,3973,7023,9884,2484,4724,654
4,7854,929Beginning Book Value of Minority
Interest1,8002,0752,3672,6702,9803,2883,5893,8734,1324,3574
,5414,678Residual Income to Minority
Interest1,9762,2482,5292,8153,0993,3733,6293,8614,0594,2184
,3314,461Present Value of MI Residual
Income1,7961,8581,9001,9231,9241,9041,8621,8011,7221,6261
,5181,421Value of Minority Interest43,970Net Operating
Income3,188,0453,631,3534,091,6554,559,9925,025,8625,477,5
245,902,4156,287,6776,620,7556,890,0487,085,5487,298,114Be
ginning Net Operating
Assets8,167,3009,415,12710,737,99912,114,89613,519,59714,9
21,17316,284,84317,573,19118,747,69519,770,50720,606,3702
1,224,562Residual Income to all
Investors2,422,6052,748,9683,085,2903,424,5843,758,8064,079
,1124,376,2004,640,7174,863,7215,037,1565,154,3195,308,948
Present Value of Residual Investor
Income2,215,0142,298,0392,358,1832,393,2232,401,7022,383,0
31. 262,337,5132,266,3962,171,7672,056,4771,923,9931,811,902En
tity Value64,072,967Less Value of Debt1,445,049Less Value of
Preferred Stock0Less Value of Minority
Interest(43,970)Forecast Equity Value Before Time
Adj.65,474,046Forecasted Value as of Valuation
Date77,799,535Less Value of Contingent Equity Claims0Value
Attributable to Common Equity77,799,535Common Shares
Outstanding at BS Date1,485,100Equivalent Shares at Valuation
Date1,485,100Forecast Price/Share$52.39
DCF ValuationsDCF Valuations($000)Company NameStarbucks
CorporationMost Recent Fiscal Year End9/26/11Date of
Valuation1/20/13Cost of Common Equity10.00%Terminal
Growth Rate3.00%Fiscal Year of
Forecast2012/09/262013/09/262014/09/262015/09/262016/09/26
2017/09/262018/09/262019/09/262020/09/262021/09/262022/09
/262023/09/26-6113812.2149Valuation to Common EquityFree
Cash Flow to Common
Equity2,239,6962,620,8683,033,5763,472,7253,931,3614,400,7
094,870,3275,328,3995,762,1516,158,3776,504,0676,699,189Pr
esent Value of
FCF2,036,0872,166,0072,279,1702,371,9182,441,0662,484,085
2,499,2482,485,7382,443,7142,374,3212,279,6362,134,568Pres
ent Value Beyond 10 Years35,822,850Present Value of First 10
Years23,581,354Forecast Equity Value Before Time
Adj.59,404,204Forecasted Value as of Valuation
Date70,587,046Less Value of Contingent Equity Claims0Value
Attributable to Common Equity70,587,046Common Shares
Outstanding at BS Date1,485,100Equivalent Shares at Valuation
Date1,485,100Forecast Price/Share$47.53Valuation to All
InvestorsCost of Net Debt8.00%Cost of Preferred
Stock9.00%Cost of Minority Interest10.00%After Tax Weighted
Average Cost of Capital9.37%Free Cash Flow to
Debt(277,608)(287,328)(290,411)(285,580)(271,745)(248,103)(
214,228)(170,153)(116,424)(54,122)15,14615,600Present Value
of FCF to
Debt(257,044)(246,337)(230,537)(209,910)(184,945)(156,347)(
32. 125,000)(91,928)(58,241)(25,069)6,4966,195Value of
Debt(1,445,049)Free Cash Flow to Preferred
Stock000000000000Present Value of FCF to Preferred
Stock000000000000Value of Preferred Stock0Free Cash Flow to
Minority
Interest1,8812,1642,4632,7733,0883,4013,7043,9894,2474,4704
,6494,788Present Value of FCF to Minority
Interest1,7101,7881,8501,8941,9171,9201,9011,8611,8011,7231
,6291,526Value of Minority Interest43,970Free Cash Flows to
Investors1,940,2182,308,4822,714,7583,155,2913,624,2864,113
,8544,614,0685,113,1735,597,9446,054,1846,467,3576,661,377
Present Value of FCF to
Investors1,773,9621,929,8082,074,9742,205,0312,315,7502,403
,3222,464,5682,497,1312,499,6152,471,6902,414,1212,273,475
Entity Value64,072,967Less Value of Net Debt1,445,049Less
Value of Preferred Stock0Less Value of Minority
Interest(43,970)Forecast Equity Value Before Time
Adj.65,474,046Forecasted Value as of Valuation
Date77,799,535Less Value of Contingent Equity Claims0Value
Attributable to Common Equity77,799,535Common Shares
Outstanding at BS Date1,485,100Equivalent Shares at Valuation
Date1,485,100Forecast Price/Share$52.39
EPS ForecasterEPS Forecaster($000, except per share
amounts)Company NameStarbucks CorporationCommon Shares
Outstanding at BS Date1,485,100Equivalent Shares at Valuation
Date1,485,100Forecasted Price at Valuation
Date$47.53ForecastForecastForecastForecastForecastForecastFo
recastForecastForecastForecastForecastForecastFiscal Year of
Forecast2012/09/262013/09/262014/09/262015/09/262016/09/26
2017/09/262018/09/262019/09/262020/09/262021/09/262022/09
/262023/09/26Net
Income3,128,5893,563,2204,014,4134,473,3684,929,7785,372,1
235,788,0856,165,0616,490,7536,753,8076,944,4387,152,771Co
mmon Equity Issued
(Repurchased)(1,086,699)(1,307,695)(1,554,122)(1,824,130)(2,
114,563)(2,420,890)(2,737,212)(3,056,355)(3,370,077)(3,669,3
33. 59)(3,944,795)(4,063,139)Forecasted Price at Year
End$46.27$50.00$53.97$58.19$62.69$67.49$72.60$78.07$83.9
3$90.23$97.02$104.34New Shares Issued
(Repurchased)(23,486)(26,154)(28,797)(31,346)(33,729)(35,873
)(37,702)(39,150)(40,154)(40,668)(40,659)(38,940)Shares
Outstanding at End of
Year1,461,6141,435,4601,406,6641,375,3181,341,5881,305,716
1,268,0131,228,8641,188,7101,148,0421,107,3831,068,443Fore
cast
EPS$2.12$2.46$2.82$3.22$3.63$4.06$4.50$4.94$5.37$5.78$6.1
6$6.57Consensus Analyst Forecast of EPSForecast Five Year
Growth Rate in EPS14%Consensus Analyst Forecast of Growth
RateTo obtain analyst forecasts, click here
Although not a necessary input for eVal, we recommend that
you find the analyst forecasts for your company and store them
in the yellow-shaded cells for comparison purposes.
Model SummaryModel SummaryHistorical Data For:Starbucks
CorporationMost Recent Fiscal Year End:2011/09/26Average
ROE (last five years)30.37%Sales Growth (last five
years)13.13%Forecast Data:Forecast Horizon10 yearsThis
Year's ROE49.96%Terminal Year's ROE46.61%This Year's
Sales Growth15.28%Terminal Year's Sales Growth3.00%This
Year's Forecast EPS$2.12Forecast 5 Year EPS
Growth13.83%Valuation Data:Cost of Equity
Capital10.00%Valuation Date2013/01/20Estimated
Price/Share$47.53Estimated Price/Earnings
Ratio22.38Estimated Market/Book Ratio12.13
Case DataCut-and-Paste the yellow block of case data into the
Raw Data Input section on the lower part of the eVal financial
statementsAmerica OnlineAmazon.comFour
ModelsIntelCabelasNetflixOverstockRoyal
CaribbeanCarnivalSporting Goods IndustrySaltonCity
ScreensCountry CinemaSiriusVerizonNordstromRoss
StoresKohlsAppleIBMCompany Name and TickerAMERICA
ONLINE INCAOLCommon Shares Outstanding
(000)2,255,000Fiscal Year End (YYYY-MM-
34. DD)1991/06/291992/06/291993/06/291994/06/291995/06/29Sale
s (Net)394,2901,094,0002,197,0003,091,0004,777,000Cost of
Goods
Sold(229,724)(654,000)(1,770,000)(2,434,000)(3,465,000)R&D
Expense(64,598)(75,000)(204,000)(333,000)(286,000)SG&A
Expense(119,764)(293,000)(605,000)(328,000)(408,000)Depreci
ation &
Amortization(1,653)(7,000)(6,000)(24,000)(65,000)Interest
Expense00000Non-Operating Income
(Loss)867(3,000)(87,000)(62,000)543,000Income
Taxes(15,169)(32,000)(10,000)16,000(334,000)Minority
Interest in Earnings00000Other Income (Loss)00000Ext. Items
& Disc. Ops.00000Preferred Dividends00000Operating Cash
and Market.
Sec.64,549129,133124,000823,0001,424,000Receivables32,176
42,93965,000192,000323,000Inventories00000Other Current
Assets36,90898,506134,000248,000232,000PP&E
(Net)70,919101,277233,000503,000657,000Investments0081,00
0531,0002,151,000Intangibles59,93556,63859,000472,000454,0
00Other Assets140,926530,261137,000105,000107,000Current
Debt2,3292,435000Accounts
Payable84,640105,90468,000120,00074,000Income Taxes
Payable00000Other Current
Liabilities46,393181,567485,0001,035,0001,651,000Long-Term
Debt17,36919,30650,000372,000348,000Other
Liabilities2,2431,1684,0007,00015,000Deferred
Taxes35,627135,87286,000344,000227,000Minority
Interest00000Preferred Stock01000Paid in Common Capital
(Net)253,435520,268647,0001,586,0002,882,000Retained
Earnings(36,623)(7,767)(507,000)(590,000)151,000-Common
Dividends0000Company Name and TickerAMAZON.COM
INCAMZNback to topCommon Shares Outstanding
(000)357,140Fiscal Year End (YYYY-MM-
DD)1992/12/301993/12/301994/12/301995/12/301996/12/30Sale
s (Net)15,746147,787609,8191,639,8392,761,983Cost of Goods
Sold(12,287)(118,969)(476,155)(1,349,194)(2,106,206)R&D
35. Expense(2,401)0000SG&A
Expense(7,501)(60,202)(194,696)(643,016)(972,777)Depreciati
on & Amortization00(42,599)(214,694)(321,772)Interest
Expense(5)(326)(26,639)(84,566)(130,921)Non-Operating
Income (Loss)2026908,6298,432(336,984)Income
Taxes00000Minority Interest in Earnings00000Other Income
(Loss)00(2,905)(76,769)(304,596)Ext. Items & Disc.
Ops.00000Preferred Dividends00000Operating Cash and
Market.
Sec.6,248125,375373,445706,1881,100,522Receivables00000In
ventories5718,97129,501220,646174,563Other Current
Assets3213,36321,30879,64386,044PP&E
(Net)9859,72629,791317,613366,416Investments007,740371,46
292,250Intangibles00178,638730,144255,325Other
Assets1462,4098,03740,15460,049Current
Debt01,50080814,32216,577Accounts
Payable2,85233,027113,273463,026485,383Income Taxes
Payable00000Other Current
Liabilities2,01810,02447,494255,886472,996Long-Term
Debt076,521348,1401,466,3382,127,464Other
Liabilities0181000Deferred Taxes00000Minority
Interest00000Preferred Stock60000Paid in Common Capital
(Net)9,42066,105300,8051,148,3061,326,050Retained
Earnings(6,025)(37,514)(162,060)(882,028)(2,293,301)-
Common Dividends0000Company Name and TickerFOUR
MODELSFOURback to topCommon Shares Outstanding
(000)1,000Fiscal Year End (YYYY-MM-
DD)1992/12/301993/12/301994/12/301995/12/301996/12/30Sale
s (Net)20,00020,00020,00020,00020,000Cost of Goods
Sold(12,000)(12,000)(12,000)(12,000)(12,000)R&D
Expense00000SG&A Expense00000Depreciation &
Amortization(2,000)(2,000)(2,000)(2,000)(2,000)Interest
Expense(1,000)(1,000)(1,000)(1,000)(1,000)Non-Operating
Income (Loss)00000Income
Taxes(2,000)(2,000)(2,000)(2,000)(2,000)Minority Interest in
Earnings00000Other Income (Loss)00000Ext. Items & Disc.
36. Ops.00000Preferred Dividends00000Operating Cash and
Market.
Sec.1,0001,0001,0001,0001,000Receivables00000Inventories00
000Other Current Assets00000PP&E
(Net)20,00020,00020,00020,00020,000Investments00000Intangi
bles00000Other Assets00000Current Debt00000Accounts
Payable00000Income Taxes Payable00000Other Current
Liabilities00000Long-Term
Debt10,00010,00010,00010,00010,000Other
Liabilities00000Deferred Taxes00000Minority
Interest00000Preferred Stock00000Paid in Common Capital
(Net)10,00010,00010,00010,00010,000Retained
Earnings1,0001,0001,0001,0001,000-Common
Dividends0000Company Name and TickerINTEL
CORPINTCback to topCommon Shares Outstanding
(000)6,668,000Fiscal Year End (YYYY-MM-
DD)1991/12/301992/12/301993/12/301994/12/301995/12/30Sale
s
(Net)16,202,00020,847,00025,070,00026,273,00029,389,000Cos
t of Goods
Sold(7,811,000)(9,164,000)(9,945,000)(12,144,000)(11,836,000
)R&D
Expense(1,296,000)(1,808,000)(2,347,000)(2,674,000)(3,503,00
0)SG&A
Expense(1,843,000)(2,322,000)(2,891,000)(3,076,000)(3,872,00
0)Depreciation & Amortization0000(411,000)Interest
Expense(29,000)(25,000)(27,000)(34,000)(36,000)Non-
Operating Income
(Loss)415,000406,000799,000792,0001,497,000Income
Taxes(2,072,000)(2,777,000)(3,714,000)(3,069,000)(3,914,000)
Minority Interest in Earnings00000Other Income
(Loss)00000Ext. Items & Disc. Ops.00000Preferred
Dividends00000Operating Cash and Market.
Sec.2,458,0007,907,0009,732,0007,310,00011,400,000Receivab
les3,116,0003,723,0003,438,0003,527,0003,700,000Inventories
2,004,0001,293,0001,697,0001,582,0001,478,000Other Current
38. Payable013,71520,35032,65449,775Income Taxes
Payable00000Other Current
Liabilities09,48118,84529,94945,067Long-Term
Debt03,856460440Other Liabilities0240288241600Deferred
Taxes00000Minority Interest0101,830000Preferred
Stock06000Paid in Common Capital
(Net)046,756248,569266,001287,981Retained
Earnings0(137,266)(159,213)(153,293)(131,698)-Common
Dividends0000Company Name and TickerOVERSTOCK.COM
INCOSTKback to topCommon Shares Outstanding
(000)16,025Fiscal Year End (YYYY-MM-
DD)1997/12/301998/12/301999/12/30Sales
(Net)40,00391,784238,945Cost of Goods
Sold(32,536)(70,953)(211,077)R&D Expense000SG&A
Expense(15,225)(19,494)(37,084)Depreciation &
Amortization(5,809)(5,391)(3,171)Interest
Expense(729)(465)(76)Non-Operating Income
(Loss)490(41)576Income Taxes000Minority Interest in
Earnings000Other Income (Loss)000Ext. Items & Disc.
Ops.000Preferred Dividends0(7,013)(262)Operating Cash and
Market.
Sec.3,72932,66240,346Receivables1,5656,99410,183Inventories
7,58613,95429,926Other Current Assets4762,3334,583PP&E
(Net)5,0184,9459,483Investments000Intangibles02,7842,784Oth
er Assets3,340284427Current Debt4,51212475Accounts
Payable3,68013,73130,363Income Taxes Payable000Other
Current Liabilities2,0936,4099,316Long-Term
Debt1655886Other Liabilities000Deferred Taxes000Minority
Interest5,28400Preferred Stock04,3632,978Paid in Common
Capital (Net)50,07394,937122,729Retained
Earnings(44,093)(55,666)(67,815)-Common
Dividends0(7,013)(262)Company Name and TickerROYAL
CARIBBEAN CRUISES LTDRCLback to topCommon Shares
Outstanding168,591Fiscal Year End (YYYY-MM-
DD)1990/12/301991/12/301992/12/301993/12/301994/12/30Sale
s (Net)1,171,4231,183,9521,357,3251,939,0072,636,291Cost of
39. Goods
Sold(728,760)(742,467)(854,478)(1,219,268)(1,593,728)R&D
Expense00000SG&A
Expense(179,051)(177,481)(194,629)(272,368)(359,214)Depreci
ation &
Amortization(77,892)(80,071)(91,185)(143,816)(194,614)Intere
st Expense(43,349)(54,844)(76,540)(128,531)(167,869)Non-
Operating Income (Loss)(46)19,86910,3737,6619,904Income
Taxes00000Minority Interest in Earnings00000Other Income
(Loss)00000Ext. Items & Disc. Ops.(6)00(7,558)0Preferred
Dividends00000Operating Cash and Market.
Sec.23,92031,25640,419110,793172,921Receivables9,42412,17
115,53522,62836,532Inventories13,55516,83022,66537,27431,8
34Other Current Assets71,23327,56333,74540,45045,044PP&E
(Net)1,384,8141,758,4462,378,9344,785,2915,073,008Investme
nts00000Intangibles351,456341,041330,628320,214309,801Oth
er Assets10,60215,93620,37323,09816,936Current
Debt06,23413,061141,013127,919Accounts
Payable63,18171,52869,091108,474115,833Income Taxes
Payable00000Other Current
Liabilities209,094230,935321,307639,857646,403Long-Term
Debt747,107929,4581,353,9062,431,6832,341,163Other
Liabilities00000Deferred Taxes00000Minority
Interest00000Preferred Stock000172,500172,500Paid in
Common Capital
(Net)545,061546,058549,4221,185,5661,358,567Retained
Earnings300,561419,030535,512660,655923,691-Common
Dividends(30,489)(34,384)(49,984)(67,734)Company Name and
TickerCARNIVAL CORPCCLback to topCommon Shares
Outstanding (000)595,448Fiscal Year End (YYYY-MM-
DD)1990/11/291991/11/291992/11/291993/11/291994/11/29Sale
s (Net)1,806,0161,998,1502,212,5722,447,4683,009,306Cost of
Goods
Sold(1,028,475)(1,131,113)(1,241,269)(1,322,669)(1,619,377)R
&D Expense00000SG&A
Expense(223,272)(248,566)(274,855)(296,533)(369,469)Depreci
40. ation &
Amortization(110,595)(128,433)(144,987)(167,287)(200,668)Int
erest Expense(51,378)(63,080)(64,092)(55,898)(57,772)Non-
Operating Income (Loss)(478)33,50787,97867,20288,782Income
Taxes10,053(9,374)(9,045)(6,233)(3,815)Minority Interest in
Earnings0000(11,102)Other Income (Loss)00000Ext. Items &
Disc. Ops.00000Preferred Dividends00000Operating Cash and
Market.
Sec.124,220103,760124,115149,727143,229Receivables20,7893
3,08038,10957,09060,837Inventories45,12248,82053,28154,970
75,449Other Current
Assets50,31870,71875,42874,23890,764PP&E
(Net)3,071,4313,414,8234,099,0384,327,4135,768,114Investme
nts47,51451,794430,330479,329546,693Intangibles233,553226,
571219,589212,607437,464Other
Assets76,876155,92161,99871,40156,773Current
Debt84,64472,75266,36959,62067,626Accounts
Payable86,75090,23784,748106,783168,546Income Taxes
Payable00000Other Current
Liabilities393,563431,721511,625619,739898,941Long-Term
Debt1,046,9041,035,0311,277,5291,015,2941,563,014Other
Liabilities129,028130,87339,10300Deferred
Taxes0091,63020,24163,036Minority
Interest0000132,684Preferred Stock00000Paid in Common
Capital (Net)538,345592,733823,103873,885905,848Retained
Earnings1,390,5891,752,1402,207,7812,731,2133,379,628-
Common
Dividends(85,098)(103,877)(130,456)(178,458)Company Name
and TickerSALTON INCSFPback to topCommon Shares
Outstanding (000)11,352Fiscal Year End (YYYY-MM-
DD)1992/06/281993/06/281994/06/271995/06/251996/06/30Sale
s (Net)99,202182,806305,599506,116837,302Cost of Goods
Sold(72,780)(129,399)(191,703)(307,147)(504,889)R&D
Expense00000SG&A
Expense(21,343)(42,944)(84,216)(129,588)(156,749)Depreciati
on & Amortization00000Interest
41. Expense(3,934)(4,063)(5,333)(15,518)(28,761)Non-Operating
Income (Loss)007,83900Income
Taxes3,450(2,001)(12,205)(19,320)(55,087)Minority Interest in
Earnings00000Other Income (Loss)00000Ext. Items & Disc.
Ops.00000Preferred Dividends00000Operating Cash and
Market.
Sec.42,61366111,2407,606Receivables15,87125,64743,22596,1
79129,850Inventories28,28841,96876,506144,124219,230Other
Current Assets3,8836,5567,5459,48413,859PP&E
(Net)6,2328,3168,31524,65134,643Investments012,157000Intan
gibles3,6714,8805,14542,638159,088Other
Assets1,532206000Current
Debt24,51238,47750,47532,229112,155Accounts
Payable10,05717,36118,96040,99735,113Income Taxes
Payable006,49904,578Other Current
Liabilities1,2332,9507,23521,86521,028Long-Term
Debt3,7544,9330182,329215,065Other Liabilities00000Deferred
Taxes005171572,529Minority Interest00000Preferred
Stock00000Paid in Common Capital
(Net)29,35843,65642,7641,24932,502Retained
Earnings(9,433)(5,034)14,94749,490141,306-Common
Dividends0000Company Name and TickerCITY
SCREENSCSCRback to topCommon Shares Outstanding
(000)23,469Fiscal Year End (YYYY-MM-
DD)1991/03/301992/03/271993/04/021994/04/011995/03/31Sale
s (Net)564,664657,872752,904852,7551,026,721Cost of Goods
Sold(209,122)(247,740)(295,557)(341,988)(407,124)R&D
Expense00000SG&A
Expense(266,600)(297,577)(344,399)(403,866)(517,066)Depreci
ation &
Amortization(37,913)(43,886)(52,572)(70,117)(89,221)Interest
Expense(35,908)(28,828)(22,022)(35,679)(38,628)Non-
Operating Income
(Loss)9,8576,830(6,459)(42,204)(1,198)Income
Taxes9,000(19,300)(12,900)16,60010,500Minority Interest in
Earnings00000Other Income (Loss)00000Ext. Items & Disc.
42. Ops.0(19,350)000Preferred Dividends00000Operating Cash and
Market.
Sec.140,37710,79524,7159,88113,239Receivables8,57220,5039,
83713,01818,325Inventories00000Other Current
Assets12,06915,17949,96284,22471,024PP&E
(Net)279,904355,485543,058562,158726,025Investments00000I
ntangibles42,92636,48328,67922,06618,723Other
Assets38,30645,01362,804104,433128,394Current
Debt2,5162,9043,4414,01718,017Accounts
Payable29,04764,35361,87672,63369,381Income Taxes
Payable00000Other Current
Liabilities33,79438,31969,79297,186101,658Long-Term
Debt264,988185,268370,283399,595591,603Other
Liabilities34,42133,69643,65182,89479,606Deferred
Taxes00000Minority Interest00000Preferred
Stock2,6672,6672,2021,2000Paid in Common Capital
(Net)118,139118,648117,205117,213110,439Retained
Earnings36,58237,60350,60521,0425,026-Common
Dividends(7,000)(5,993)(5,064)0Company Name and
TickerCOUNTY CINEMACCINback to topCommon Shares
Outstanding (000)11,363Fiscal Year End (YYYY-MM-
DD)1990/12/301991/12/301992/12/301993/12/301994/12/30Sale
s (Net)327,619364,749426,726458,598481,568Cost of Goods
Sold(126,930)(150,613)(174,220)(188,006)(197,665)R&D
Expense00000SG&A
Expense(132,918)(149,164)(170,108)(181,455)(194,985)Depreci
ation &
Amortization(22,544)(27,216)(28,408)(33,443)(37,502)Interest
Expense(17,028)(16,031)(20,289)(23,142)(27,230)Non-
Operating Income (Loss)00(45,447)0(72,999)Income
Taxes(11,246)(8,638)4,469(12,366)18,166Minority Interest in
Earnings00000Other Income (Loss)00000Ext. Items & Disc.
Ops.00000Preferred Dividends00000Operating Cash and
Market.
Sec.22,68718,84713,29519,58718,572Receivables3,81412,2114,
822758522Inventories1,9392,9362,6313,0823,851Other Current
43. Assets5,0255,6325,3637,5485,886PP&E
(Net)293,971371,851387,915497,056573,612Investments4,6314,
97310,32414,14820,334Intangibles43,15659,23162,60868,14956
,954Other Assets2,3752,3312,4259,66917,812Current
Debt9,35212,20515,02619,0771,290Accounts
Payable23,47824,87321,43226,12245,533Income Taxes
Payable00000Other Current
Liabilities11,32719,10217,24017,83337,842Long-Term
Debt143,973218,305253,233341,662350,470Other
Liabilities000036,099Deferred
Taxes17,51218,4334,52212,4310Minority
Interest00000Preferred Stock0000550Paid in Common Capital
(Net)100,098100,149100,262105,018158,884Retained
Earnings71,85884,94577,66897,85466,875-Common
Dividends0000Company Name and TickerKOHL'S
CORPKSSback to topCommon Shares Outstanding
(000)307,000Fiscal Year End (YYYY-MM-
DD)2002/01/302003/01/302004/01/302005/01/302006/01/30Sale
s
(Net)13,402,21715,544,18416,473,73416,389,00017,178,000Cos
t of Goods
Sold(8,670,484)(9,890,513)(10,459,549)(10,334,000)(10,680,00
0)R&D Expense00000SG&A
Expense(3,007,842)(3,451,196)(3,757,563)(3,978,000)(4,196,00
0)Depreciation &
Amortization(307,710)(387,674)(452,145)(541,000)(590,000)Int
erest Expense(79,383)(74,427)(98,712)(140,000)(134,000)Non-
Operating Income
(Loss)8,99234,07136,29629,00010,000Income
Taxes(503,830)(665,764)(658,210)(540,000)(597,000)Minority
Interest in Earnings00000Other Income (Loss)00000Ext. Items
& Disc. Ops.00000Preferred Dividends00000Operating Cash
and Market.
Sec.286,916620,400663,671676,0002,267,000Receivables1,652,
0650000Inventories2,237,5682,588,0992,855,7332,799,0002,92
3,000Other Current
45. 289956,000900,000898,000Other Current
Assets200,829229,794259,000303,000326,000PP&E
(Net)1,773,8711,757,2151,983,0002,221,0002,242,000Investme
nts00000Intangibles140,912135,71453,00053,00053,000Other
Assets132,409186,456203,000170,000230,000Current
Debt306,6186,800261,000299,000356,000Accounts
Payable540,019576,796556,000563,000726,000Income Taxes
Payable81,61776,09558,00000Other Current
Liabilities695,058773,452760,000739,000932,000Long-Term
Debt627,776623,6522,236,0002,214,0002,257,000Other
Liabilities577,580596,262614,000636,000736,000Deferred
Taxes00000Minority Interest00000Preferred Stock00000Paid in
Common Capital
(Net)685,607826,421936,000997,0001,066,000Retained
Earnings1,407,0741,342,100179,000213,000506,000-Common
Dividends(134,000)110,158134,000138,000139,000Company
Name and TickerROSS STORES INCROSTback to topCommon
Shares Outstanding (000)122,929Fiscal Year End (YYYY-MM-
DD)2002/01/272003/02/022004/02/012005/01/302006/01/29Sale
s (Net)4,944,1795,570,2105,975,2126,486,1397,184,213Cost of
Goods
Sold(3,832,296)(4,317,527)(4,618,220)(4,956,576)(5,327,278)R
&D Expense00000SG&A
Expense(786,439)(863,033)(935,901)(1,034,357)(1,130,813)Dep
reciation & Amortization00000Interest
Expense(4,102)(2,873)(9,771)(8,343)(9,393)Non-Operating
Income (Loss)7,00011,50013,8008,5001,800Income
Taxes(128,710)(156,643)(164,069)(189,922)(275,772)Minority
Interest in Earnings00000Other Income (Loss)00000Ext. Items
& Disc. Ops.00000Preferred Dividends00000Operating Cash
and Market.
Sec.204,530372,635263,678322,153770,097Receivables29,1223
0,10537,46896,411102,852Inventories938,0911,051,7291,025,2
95881,058872,498Other Current
Assets57,10460,48771,56014,0930PP&E
(Net)639,852748,233868,315951,656942,999Investments11,202
46. 31,13640,76638,01416,848Intangibles12,08613,91612,79610,97
12,889Other Assets46,75150,35051,44441,15560,450Current
Debt50,0000000Accounts
Payable474,614698,063637,158536,745658,299Income Taxes
Payable25,58633,57721,8189,12054,399Other Current
Liabilities328,783351,617351,629409,394477,816Long-Term
Debt0150,000150,000150,000150,000Other
Liabilities122,92632,51057,34061,99464,883Deferred
Taxes100,657182,994182,728191,889205,943Minority
Interest00000Preferred Stock00000Paid in Common Capital
(Net)476,415524,910554,558595,397646,443Retained
Earnings359,757384,920416,091400,972510,850-Common
Dividends0(33,634)(40,638)(49,838)(55,202)Company Name
and TickerCABELA'S INCCABback to topCommon Shares
Outstanding (000)66,923Fiscal Year End (YYYY-MM-
DD)2000/12/302001/12/302002/12/302003/12/302004/12/30Sale
s (Net)1,555,9741,799,6612,063,5242,349,5992,552,721Cost of
Goods
Sold(895,822)(1,029,410)(1,158,840)(1,318,523)(1,475,541)R&
D Expense00000SG&A
Expense(533,094)(620,376)(715,380)(820,121)(871,468)Depreci
ation &
Amortization(29,843)(34,912)(45,559)(59,863)(64,673)Interest
Expense(8,178)(10,928)(17,947)(20,243)(29,708)Non-Operating
Income (Loss)11,04411,33511,4588,3786,904Income
Taxes(35,085)(42,801)(51,471)(51,348)(41,831)Minority
Interest in Earnings00000Other Income (Loss)00000Ext. Items
& Disc. Ops.00000Preferred Dividends00000Operating Cash
and Market.
Sec.248,18486,923172,903131,182410,104Receivables38,73312
5,000196,359244,270213,014Inventories313,002396,635484,41
4608,159517,657Other Current
Assets128,56885,469100,545110,777133,439PP&E
(Net)294,141459,622600,065904,052920,398Investments00000I
ntangibles4,5553,61708,1235,902Other
Assets201,048209,014196,944206,267195,552Current
47. Debt28,32721,65233,294126,785179,512Accounts
Payable100,826162,305239,285281,391189,766Income Taxes
Payable00000Other Current
Liabilities324,588364,511346,255422,928331,526Long-Term
Debt119,82590,777284,579376,600379,336Other
Liabilities71,68666,99283,519145,454363,514Deferred
Taxes16,62520,19030,44031,11338,707Minority
Interest00000Preferred Stock00000Paid in Common Capital
(Net)239,560240,490248,710257,287266,029Retained
Earnings326,794399,363485,148571,272647,676-Common
Dividends00000Company Name and TickerSporting Goods
StoresMG740back to topCommon Shares Outstanding
(000)36,184Fiscal Year End (YYYY-MM-
DD)2000/12/302001/12/302002/12/302003/12/302004/12/30Sale
s (Net)651,734872,581821,884952,7571,005,890Cost of Goods
Sold(421,579)(563,859)(528,199)(608,868)(654,521)R&D
Expense(16)0000SG&A
Expense(174,364)(233,253)(223,527)(262,510)(277,137)Depreci
ation &
Amortization(12,576)(17,408)(16,495)(20,814)(23,708)Interest
Expense(4,537)(6,317)(5,004)(5,199)(5,933)Non-Operating
Income (Loss)172(2,556)178(3,610)(23,980)Income
Taxes(15,398)(18,753)(19,677)(21,873)(13,577)Minority
Interest in Earnings00000Other Income (Loss)00000Ext. Items
& Disc. Ops.00000Preferred Dividends00000Operating Cash
and Market.
Sec.42,63225,17738,84623,55358,037Receivables11,65625,127
30,56938,12333,992Inventories144,192194,027185,408235,144
220,261Other Current
Assets22,47618,52520,65125,67326,659PP&E
(Net)99,332144,468143,097191,863195,647Investments00000In
tangibles31,89836,12428,49750,14333,253Other
Assets30,88837,68729,62128,50235,707Current
Debt4,8384,4049,04721,65923,772Accounts
Payable62,19185,74482,17999,91479,343Income Taxes
Payable00000Other Current
48. Liabilities75,92797,76683,285105,45385,203Long-Term
Debt70,60466,98462,41375,81281,123Other
Liabilities24,75031,11633,82747,81878,891Deferred
Taxes2,4092,8843,5183,6766,264Minority
Interest00500Preferred Stock3760000Paid in Common Capital
(Net)83,74996,11994,620102,424106,572Retained
Earnings58,23096,118107,797136,246142,389-Common
Dividends198907857898865Company NameSIRIUS
SATELLITE RADIO INCSIRIback to topCommon Shares
Outstanding1,346,227Fiscal Year End (YYYY-MM-
DD)1997/12/301998/12/301999/12/302000/12/302001/12/30Sale
s (Net)080512,87266,854242,245Cost of Goods
Sold(47,464)(69,898)(86,774)(120,914)(184,943)R&D
Expense(47,794)(30,087)(24,534)(30,520)(44,745)SG&A
Expense(64,146)(131,200)(243,741)(498,354)(743,142)Deprecia
tion &
Amortization(9,052)(82,747)(95,353)(95,370)(98,555)Interest
Expense(89,686)(106,163)(50,510)(41,386)(45,361)Non-
Operating Income
(Loss)22,379(3,191)261,82511,72913,815Income
Taxes000(4,201)(2,311)Minority Interest in
Earnings00000Other Income (Loss)00000Ext. Items & Disc.
Ops.00000Preferred Dividends00000Operating Cash and
Market.
Sec.323,742173,702551,880763,874904,422Receivables000031,
688Inventories000014,256Other Current
Assets12,30325,90727,78447,16661,082PP&E
(Net)1,082,9151,032,874941,052881,280828,357Investments7,2
007,2006,75092,61582,450Intangibles83,65483,65483,65483,65
483,654Other Assets17,79117,6036,19789,02479,453Current
Debt00000Accounts
Payable39,83643,33665,9195,5256,829Income Taxes
Payable00000Other Current
Liabilities20,4774,98416,084263,989600,138Long-Term
Debt639,990670,357194,803656,2741,084,437Other
Liabilities19,48554,26411,59315,50112,511Deferred
49. Taxes003,72415,69156,479Minority Interest00000Preferred
Stock485,168531,153000Paid in Common Capital
(Net)827,647964,3252,478,8882,866,4893,053,821Retained
Earnings(504,998)(927,479)(1,153,694)(1,865,856)(2,728,853)C
ommon Dividends00000Company NameVERIZON
COMMUNICATIONSVZback to topCommon Shares
Outstanding1,979,509Fiscal Year End (YYYY-MM-
DD)2000/12/302001/12/302002/12/302003/12/302004/12/30Sale
s
(Net)71,283,00075,112,00088,144,00093,469,00097,354,000Cos
t of Goods
Sold(23,168,000)(25,469,000)(34,994,000)(37,547,000)(39,007,
000)R&D Expense00000SG&A
Expense(21,088,000)(21,312,000)(25,232,000)(25,967,000)(26,
898,000)Depreciation &
Amortization(13,910,000)(14,047,000)(14,545,000)(14,377,000)
(14,565,000)Interest
Expense(2,384,000)(2,180,000)(2,349,000)(1,829,000)(1,819,00
0)Non-Operating Income
(Loss)1,788,0001,548,0001,168,000796,000849,000Income
Taxes(2,851,000)(3,210,000)(2,674,000)(3,982,000)(3,331,000)
Minority Interest in
Earnings(2,409,000)(3,045,000)(4,038,000)(5,053,000)(6,155,0
00)Other Income (Loss)00(42,000)00Ext. Items & Disc.
Ops.570,0000759,00011,0000Preferred
Dividends00000Operating Cash and Market.
Sec.4,547,0003,274,0005,653,0003,397,00010,291,000Receivab
les9,801,0009,171,00010,891,00011,736,00011,703,000Inventor
ies1,535,0001,780,0001,514,0001,729,0002,092,000Other
Current
Assets3,596,0002,223,0004,480,0001,836,0001,989,000PP&E
(Net)74,124,00075,305,00082,356,00085,294,00086,546,000Inv
estments00000Intangibles47,448,00052,933,00061,754,00061,0
29,00073,208,000Other
Assets24,907,00023,444,00022,156,00021,938,00016,523,000C
urrent
50. Debt3,593,0007,141,0007,715,0002,954,0004,993,000Accounts
Payable13,177,00012,351,00014,320,0004,491,0003,856,000Inc
ome Taxes Payable00000Other Current
Liabilities6,359,0005,571,00010,245,00017,296,00017,057,000
Long-Term
Debt35,674,00031,869,00028,646,00028,203,00046,959,000Oth
er
Liabilities22,010,00022,353,00034,736,00036,362,00038,813,00
0Deferred
Taxes22,532,00022,411,00016,270,00014,784,00011,769,000Mi
nority
Interest25,053,00026,754,00028,337,00032,288,00037,199,000P
referred Stock00000Paid in Common Capital
(Net)24,576,00023,775,00031,211,00032,697,00022,456,000Ret
ained
Earnings12,984,00015,905,00017,324,00017,884,00019,250,000
Common
Dividends4,262,0004,427,0004,719,0004,773,0004,994,000Com
pany NameAPPLE INCAAPLback to topCommon Shares
Outstanding899,806Fiscal Year End (YYYY-MM-
DD)2001/09/232002/09/292003/09/282004/09/262005/09/25Sale
s
(Net)13,931,00019,315,00024,006,00032,479,00036,537,000Cos
t of Goods
Sold(9,889,000)(13,717,000)(15,852,000)(21,334,000)(23,397,0
00)R&D
Expense(535,000)(712,000)(782,000)(1,109,000)(1,333,000)SG
&A
Expense(1,864,000)(2,433,000)(2,963,000)(3,761,000)(4,149,00
0)Depreciation & Amortization00000Interest
Expense00000Non-Operating Income
(Loss)165,000365,000599,000620,000326,000Income
Taxes(480,000)(829,000)(1,512,000)(2,061,000)(2,280,000)Min
ority Interest in Earnings00000Other Income (Loss)00000Ext.
Items & Disc. Ops.00000Preferred Dividends00000Operating
Cash and Market.
52. (Loss)00000Ext. Items & Disc. Ops.(60,000)76,000000Preferred
Dividends00000Operating Cash and Market.
Sec.13,686,00010,656,00016,146,00012,907,00014,247,000Rece
ivables24,428,00026,848,00028,789,00031,854,00030,464,000I
nventories2,841,0002,810,0002,664,0002,701,0002,494,000Othe
r Current
Assets4,706,0004,346,0005,578,0001,542,0001,730,000PP&E
(Net)13,756,00014,440,00015,081,00014,305,00014,165,000Inv
estments1,174,0001,618,0001,940,00001,157,000Intangibles11,
104,00015,056,00016,392,00021,104,00023,015,000Other
Assets34,053,00027,460,00033,841,00025,111,00021,750,000C
urrent
Debt7,216,0008,902,00012,235,00011,236,0004,168,000Accoun
ts
Payable7,349,0007,964,0008,054,0007,014,0007,436,000Income
Taxes
Payable4,710,0004,670,0003,673,0002,743,0003,826,000Other
Current
Liabilities15,877,00018,555,00020,348,00021,442,00020,572,00
0Long-Term
Debt15,425,00013,780,00023,039,00022,689,00021,932,000Oth
er
Liabilities18,020,00017,690,00020,489,00030,815,00024,301,00
0Deferred
Taxes4,053,0003,167,0004,124,00004,032,000Minority
Interest00000Preferred Stock00000Paid in Common Capital
(Net)(11,636,000)(23,926,000)(32,171,000)(56,768,000)(58,144
,000)Retained
Earnings44,734,00052,432,00060,640,00070,353,00080,899,000
Common Dividends00000
America Online
Amazon.com
Four Models
Intel
Netflix
Overstock
53. Royal Caribbean
Carnival
Salton
City Screens
Country Cinema
Kohls
Nordstrom
Ross Stores
Cabelas
Sporting Goods Industry
Sirius
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54. Starbucks Corporation
Forecast & Analysis Assignment 1
FINC 430 6380 Financial Management
University of Maryland University College
Jeffrey Peyton
January 17, 2017
Introduction
Starbucks Corporation, who trades its common stock as
“SBUX” on the NASDAQ, is “the premier roaster, marketer and
retailer of specialty coffee in the world” (Starbucks, 2016). The
company is comprised of seven brands, which include:
Starbucks Coffee, Teavana, Tazo, Seattle’s Best Coffee,
Evolution Fresh, La Boulange and Ethos (Starbucks, 2016).
Starbucks operates both company-owned, and licensed stores,
and also operates a sizeable business by selling its products
through third-party accounts. The company has five segments of
business in which it operates 23,043 stores in 68 different
countries, and in fiscal year 2015 those segments represented
the following, as a percentage of total revenues: Americas
(69%), China/Asia Pacific (13%), Europe, Middle East and
55. Africa (6%), Channel Development (9%), and all other segments
(3%) (Starbucks, 2016).
McDonalds and Dunkin Donuts, two of Starbucks’ main
competitors, have not seen the same positive growth across their
key performance indicators in recent years. “Not surprisingly,
investors have caught onto the fact that McDonald’s and
Dunkin’ may be hurting one another – and not Starbucks – as
evidenced by recent moves in Starbucks, Dunkin’, and
McDonald’s shares” (Lim, 2014). However, some challenges
that Starbucks faces in the near future are the rising price of
coffee beans, higher wage payments and the continuing increase
in the price of its products (Team, 2016). With these challenges,
it will be necessary for Starbucks to be strategic in its future
business decisions to protect the historical positive trending
sales growth. The following paper will analyze the outcome of
an eVal financial forecast completed on Starbucks, and will
detail future growth rates, projected financial statements,
financial ratios and other assumptions.
Explanation of Growth Rates
Starbucks has seen positive year-over-year sales growth of
12 %, 10.6%, 16.5% in 2013, 2014, and 2015 respectively, and
eVal forecasts that the company will continue to see positive
growth into 2026. The terminal growth rate forecasted for
Starbucks by eVal is 3%, which is a solid financial outlook for
the company. In the short-term, the company should continue
the process of “leveraging its consumer loyalty and lack of
elasticity among its consumers by continuously passing on
increases in costs…to its customers” (Team, 2016). By
continuously raising the price of its products, the company can
protect its operating margins, and not sacrifice the quality of its
product and/or locations. When the price of products becomes
too high for the consumer, Starbucks can move to maximize the
atmosphere, and offer an experience even better than previously
offered, to offset the price of the product with an experience.
The eVal forecasts sales growth in 2016 to have an
56. increase of 15.3% compared to a forecasted increase of only
4.2% in 2025. The next 10 years are forecasted to be positive,
but not as positive as the previous, leading to a plateau in
business. According to a recent financial press release,
Starbucks plans to “add 12,000 stores globally –to a total of
37,000 – by 2021” (Starbucks, 2016). The expansion of stores
internationally is the biggest opportunity to for the company.
With the planned expansion, Starbucks will gain forecasted net
sales of more than $29 billion from 2015 to 2025 according to
the eVal.
Explanation of All Other Assumptions
Table 1: eVal Assumptions for Financial Forecast Using eVal
As mentioned previously, sales growth is forecasted by
eVal to continue to remain positive into 2025, but slowly
decrease in its velocity from 16.5% to 3% in 2015 and 2025
respectively. The eVal assumes all other indicators above,
referenced in table 1, to remain constant into the future. Cost of
goods sold are forecasted at 68.7% constantly over the next 10
years, showing investors that Starbucks will be able to maintain
healthy relationships with its suppliers, and that buyers and
negotiators will be able to maintain stability as it relates to
costs. In addition, the ending operating cash/sales ratio remains
forecasted at a constant 8.4%, informing investors that
Starbucks will continue to turn the sales it earns into cash to use
for business. Shareholders should also notate the constant
36.9% dividend payout ratio forecasted, as this informs them to
expect a continuous growth of their investment. This high pay-
out ratio will most likely hold true based on the recent
announcement of its intent to open 12,000 stores globally
(Starbucks, 2016). It should also be noted that the eVal forecast
57. did not take into account this announcement, and the financing
assumptions will most likely change. With the planned
expansion of stores, Starbucks will most likely incur increases
in its long-term debt as a result of additional leases. According
to Starbucks’ Form 10k, the company currently has about
“12,235 company-operated stores, almost all of which are
leased” (Starbucks, 2016).
Explanation and Interpretation of Projected Financial
Statements
Net sales of Starbucks were $19 billion in 2015, and are
forecasted by eVal to reach $48 billion by 2025, more than
double its current sales. This large increase in sales will most
likely occur as a result of the company’s expanded footprint
globally, and over the past 5 years, the company has seen
similar growth, increasing net sales from $11 billion in 2011 to
$19 billion in 2015. Net income aligns with net sales, forecasted
at a continuous positive increase. The company also is
forecasted to continue with a healthy 20% EBITDA. The non-
operating income forecasted may be offset by a large litigation
charge of $2,784 million to Kraft that posted to the company’s
income statement in 2013 (Starbucks, 2016). In developing a
strategy for the future, Starbucks should limit its partnerships
with third-party companies on large scale agreements to
diversify its financial risk.
On the historical balance sheet of Starbucks, the company
maintained operating cash of $2 billion in 2011, yet is only
forecasted for $1.8 billion in 2016. The company is forecasted
to eventually reach its 2011 operating cash flow in 2017, with
$2.1 billion, and continue on its positive trend. Other current
liabilities also were also affected by the Kraft litigation
payment, and may have skewed the forecast. When the 2013
other current liabilities were adjusted to reflect no litigation
payment, the eVal forecast was not affected.
Explanation and Interpretation of Overall Forecast Results &
Financial Ratio
Starbucks’ positive sales performance has a trickle effect
58. on the financial ratios forecasted using eVal. As it relates to
annual growth rates, sales, assets and common equity continue
into 2025 positively trending, although slightly decrease year-
over-year. In 2016, a 15.3% sales, asset and common equity
growth is forecasted compared with a 4.2% growth in 2025.
Earnings are about (0.1)% off of sales every year. Free cash
flow to investors is forecasted as a huge spike in 2016, to
153.2% and then decreases to 19% the following year in 2017.
This is most likely a skewed forecast due to the $2.8 billion
arbitration payment made to Kraft Foods in 2014, as a result of
breach of contract (Starbucks, 2016). Starbucks should invest
heavily in its legal and risk departments to avoid future legal
proceedings that may result in similar negative financial
consequences.
As it relates to profitability, the eVal forecasts that
Starbucks will remain consistent with its return on equity at
0.497 in 2015, and forecasted at 0.470 in 2025. The company is
doing well with generating profits from shareholder’s equity,
and in order to continue this trend, the executive leadership
team should continue their growth strategy of expanding the
company’s footprint of stores internationally. From 2015 to
2025, the gross margin, EBITDA margin and net operating
margin are all forecasted at a constant. This forecast will likely
be true for Starbucks if coffee bean prices align with top line
sales. One of the challenges faced by Starbucks is the rising
price of coffee beans, which can be attributed to weather
conditions in the countries where it does business. “The primary
contributor towards the rise in prices of coffee beans is the
drought in Brazil and Vietnam, the largest producers of coffee
beans” (Team, 2016). In order to maintain the constant healthy
margins, Starbucks should seek out alternate, back-up locations
for similar quality beans.
Short-term liquidity is an important aspect of any
organization, as one needs to be able to pay its debts quickly in
order to continue doing business. The current ratio of Starbucks
increased from 2013 to 2015 from 1.017 to 1.191 respectively.
59. The eVal forecasts that the current ratio will continue to remain
at 1.91 until 2025. The quick ratio seen a slight decrease from
2013 to 2015 from 0.706 to 0.638 respectively. According to the
eVal forecast, the quick ratio is also to remain constant through
2025. The consistency in the positive leverage that Starbucks is
forecasted at, allows the company to continue its current daily
operation while being able to protect itself from any financial
need that should arise without notice, such as the Kraft
arbitration.
From a profitability standpoint, Starbucks hits all the marks,
showing effective maximization of assets, equity and
investments. Management should take notice of the company’s
liquidity, as the company has become less liquid over the past
five years. Starbucks has increased its long-term debt but
reduced its overall debt, and indicates to investors that it can
pay its interest payments on time. Starbucks may have found its
most effective asset management strategies as asset management
ratios have maintained relatively neutral over the past five
years. Historically Starbucks has had stellar financial
performance, and is forecasted to continue the trend. With the
expansion of its stores globally, the company is likely to see
record sales and growth over the next 10 years.
60. Appendix
Appendix A – Income Statement Assumptions eVal
Appendix B – Balance Sheet Assumptions eVal
Appendix C – Financing Assumptions eVal
Appendix D – Short-Term Liquidity eVal
Appendix E – Financial Ratios eVal
References