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Unformatted text preview: million (see calculations below). 4. What is the impact on Starbucks’ 2009 debt-to-equity ratio of adding the
present value of its operating leases to the liability section of its 2009
balance sheet?
• Starbucks’ 2009 debt-to-equity ratio before the adjustments is 0.83
($2,531.1 / 3,045.7). After the adjustment it jumps to 1.96 ($5,966.0
/ 3,045.7).
5. Would making the adjustment in #4 change your opinion about Starbucks’
credit worthiness?
• Probably not since Starbucks tends to generate a lot of operating
cash flows ($1,389.0 million in 2009), enough to easily cover its
operating lease obligations. Page 13 of 21 END-OF-CHAPTER MATERIAL
STARBUCKS’ 2009 BALANCE SHEET STARBUCKS CORPORATION CONSOLIDATED BALANCE SHEETS
(In millions, except per share data)
Sep 27,
2009 Sep 28,
2008 $ 599.8
21.5
44.8
271.0
664.9
147.2
286.6
2,035.8
71.2
352.3
2,536.4
253.8
68.2
259.1
$5,576.8 $ 269.8
3.0
49.5
329.5
692.8
169.2
234.2
1,748.0
71.4
302.6
2,956.4
261.1
66.6
266.5
$5,672.6 $ —
267.1
307...
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- Spring '12
- CHINN
- Balance Sheet, Deferred tax, Generally Accepted Accounting Principles, Income tax in the United States
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