For Starbucks (SBUX), the following table has information for revenues, Profit Margin (PM), and Asset Turnover (ATO)
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Question:
For Starbucks (SBUX), the following table has information for revenues, Profit Margin (PM), and Asset Turnover (ATO) for the past 4 years:
Fiscal 2014 | Fiscal 2015 | Fiscal 2016 | Fiscal 2017 | Fiscal 2018 | |
Sales (millions) | $ 16,448 | $ 19,163 | $ 21,316 | $ 22,287 | $ 24,720 |
PM from sales | 10.55% | 11.36% | 11.65% | 11.05% | 10.59% |
PM | 10.44% | 11.45% | 12.39% | 11.61% | 16.55% |
ATO | 2.78 | 2.92 | 2.8 | 2.89 | 4.65 |
Required
a. Using a parsimonious analysis, prepare the assumptions for foreseeable forecast.
b. Evaluate the reasonableness of the forecasted Return on Net Operating Assets (RNOA).
Use the following format to answer the questions:
Year ended | Fiscal 2018 | Fiscal 2019 | Fiscal 2020 | Fiscal 2021 | Fiscal 2022 | Fiscal 2023 | Fiscal 2024 | Fiscal 2025 |
Assumptions | ||||||||
Sales growth | ||||||||
Profit margin | ||||||||
Asset turnover ratio | ||||||||
Growth at horizon | ||||||||
Cost of enterprise capital | ||||||||
52 weeks of sales | ||||||||
Forecasts | ||||||||
Sales | 24,720.0 | |||||||
NOPAT | ||||||||
NOA |
Related Book For
Introductory Financial Accounting for Business
ISBN: 978-1260299441
1st edition
Authors: Thomas Edmonds, Christopher Edmonds
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