give full answer with step by step answer and give final summary6. Starbucks has reported the following details for the fiscal
year 2024:
Cash and Cash Equivalents: $3.5 billion
Accounts Receivable: $2.1 billion
Inventory: $1.8 billion
Property, Plant, and Equipment (PP&E): $10.5 billion
Intangible Assets: $4.3 billion
Investment Marketable Securities: $2.7 billion
Total Liabilities: $13.2 billion
Accounts Payable: $2.4 billion
Short-term Debt: $1.5 billion
Long-term Debt: $6.3 billion
Accrued Expenses: $1.2 billion
Deferred Revenue: $1.8 billion
Compute NOA.
7. Starbucks has reported the following details for the fiscal
year 2024:
Let's assume the following details for Starbucks’ fiscal
year 2024:
Revenue: $36.7 billion
COGS: $15.0 billion
Operating Expenses: $18.0 billion
Interest Expense: $0.5 billion
Income tax expense: $0.7 million
(assume: Statutory tax Rate= 21%)
Calculate NOPAT.
Using information from 6 and 7, assume that net operating
asset did not change through out the year of 2024, compute
RNOA.
Question:
give full answer with step by step answer and give final summary6. Starbucks has reported the following details for the fiscal
year 2024:
Cash and Cash Equivalents: $3.5 billion
Accounts Receivable: $2.1 billion
Inventory: $1.8 billion
Property, Plant, and Equipment (PP&E): $10.5 billion
Intangible Assets: $4.3 billion
Investment Marketable Securities: $2.7 billion
Total Liabilities: $13.2 billion
Accounts Payable: $2.4 billion
Short-term Debt: $1.5 billion
Long-term Debt: $6.3 billion
Accrued Expenses: $1.2 billion
Deferred Revenue: $1.8 billion
Compute NOA.
7. Starbucks has reported the following details for the fiscal
year 2024:
Let's assume the following details for Starbucks’ fiscal
year 2024:
Revenue: $36.7 billion
COGS: $15.0 billion
Operating Expenses: $18.0 billion
Interest Expense: $0.5 billion
Income tax expense: $0.7 million
(assume: Statutory tax Rate= 21%)
Calculate NOPAT.
Using information from 6 and 7, assume that net operating
asset did not change through out the year of 2024, compute
RNOA.
This is AI generated Response.
Asked by: sreegeeth
Created at: 2025-10-14 09:15:59
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# Step-by-Step Solutions
---
## **6. Compute Net Operating Assets (NOA)**
**NOA** is calculated as:
**NOA = Operating Assets − Operating Liabilities**
### **Step 1: Identify Operating Assets**
- **Accounts Receivable:** $2.1B
- **Inventory:** $1.8B
- **PP&E:** $10.5B
- **Intangible Assets:** $4.3B
- **Investment Marketable Securities:** $2.7B
> **Exclude**: and Cash Equivalents ($3.5B) a financial asset, not operating.
**Operating Assets Total = $2.1B + $1.8B + $10.5B + $4.3B + $2.7B = $21.4B**
### **Step 2: Identify Operating Liabilities**
- **Accounts Payable:** $2.4B
- **Accrued Expenses:** $1.2B
- **Deferred Revenue:** $1.8B
> **Exclude**: All interest-bearing debt (Short-term Debt $1.5B, Long-term Debt $6.3B) as these are financial liabilities.
**Operating Liabilities Total = $2.4B + $1.2B + $1.8B = $5.4B**
### **Step 3: Compute NOA**
\[
\text{NOA} = \text{Operating Assets} - \text{Operating Liabilities}
\]
\[
\text{NOA} = \$21.4B - \$5.4B = \$16.B
\]
---
## **7. Calculate NOPAT (Net Operating Profit After Tax)**
**Formula:**
\[
\text{NOPAT} = (\text{Operating Income}) \times (1 - \text{Tax Rate})
\]
### **Step 1: Compute Operating Income**
\[
\text{Operating Income} = \text{Revenue} - \text{COGS} - \text{Operating Expenses}
\]
\[
= \$36.7B - \$15.B - \$18.B = \$3.7B
\]
### **Step 2: Apply Tax**
\[
\text{NOPAT} = \$3.7B \times (1 - .21) = \$3.7B \times .79 = \$2.923B
\]
---
## **8. Calculate RNOA (Return on Net Operating Assets)**
**Formula:**
\[
\text{RNOA} = \frac{\text{NOPAT}}{\text{Average NOA}}
\]
Assume NOA did not change during the year, so average NOA = $16.B.
\[
\text{RNOA} = \frac{2.923}{16.} = .1827 = 18.3\%
\]
---
## **Summary Table**
| Metric | Value |
|---------------|---------------|
| NOA | $16. billion |
| NOPAT | $2.923 billion|
| RNOA | 18.3% |
---
## **Final Summary**
- **Net Operating Assets (NOA)** for Starbucks in 2024 are **$16. billion**.
- **Net Operating Profit After Tax (NOPAT)** is **$2.923 billion**.
- **Return on Net Operating Assets (RNOA)** is **18.3%** for the fiscal year 2024.
These metrics reflect Starbucks' efficiency in generating profits from its operating assets.
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6. Starbucks has reported the following details for the fiscal
year 2024:
Cash and Cash Equivalents: $3.5 billion
Accounts Receivable: $2.1 billion
Inventory: $1.8 billion
Property, Plant, and Equipment (PP&E): $10.5 billion
Intangible Assets: $4.3 billion
Investment Marketable Securities: $2.7 billion
Total Liabilities: $13.2 billion
Accounts Payable: $2.4 billion
Short-term Debt: $1.5 billion
Long-term Debt: $6.3 billion
Accrued Expenses: $1.2 billion
Deferred Revenue: $1.8 billion
Compute NOA.
7. Starbucks has reported the following details for the fiscal
year 2024:
Let's assume the following details for Starbucks’ fiscal
year 2024:
Revenue: $36.7 billion
COGS: $15.0 billion
Operating Expenses: $18.0 billion
Interest Expense: $0.5 billion
Income tax expense: $0.7 million
(assume: Statutory tax Rate= 21%)
Calculate NOPAT.
Using information from 6 and 7, assume that net operating
asset did not change through out the year of 2024, compute
RNOA.