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Non-Tech : Starbucks (SBUX)
SBUX 84.78-1.9%Nov 14 9:30 AM EST

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To: Daniel Chisholm who wrote (769)7/2/1999 5:33:00 PM
From: SC  Read Replies (1) of 1506
 
Daniel, your R/E analysis of SBUX is interesting to read. I got the following data table from Microsoft Investor. As you can see, the 4th column below shows that R/E of SBUX of past 10 years is close to 10% as you have described. However, if book value has any thing to do with a companie's value for your investment decision as you have indicated, the book value per share shown in the 2nd column below for the past 10 years has increased a few times more than 10% percent each year. For example, R/E was 8.6% in 9/98 while B/S increased 31.8%. Each year before that this situation applies similarly for SBUX.

What does it mean?

BookValue/Share | Debt/Equity | Return on Equity (%)| Return on Assets (%)| Interest Coverage
9/98 $4.43 0.00 8.6 6.9 84.1
9/97 $3.36 0.31 10.8 6.7 13.8
9/96 $2.91 0.37 9.3 5.8 8.9
9/95 $2.20 0.26 8.4 5.6 12.3
9/94 $0.95 0.73 9.3 4.4 5.7
9/93 $0.81 0.91 9.6 4.4 20.9
9/92 $0.72 0.00 5.4 4.7 NC
9/91 $0.07 1.03 32.9 6.3 NC
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