Question

Select Consolidated Financial Data for Panera Bread, 2002-2013 (in thousands, except per share amounts).

Calculate ROE using Du pont Analysis and comment on your findings.

	2013	2012	2011	2009	2002
Income statement data
Revenues
Bakery-cafe sales	$2,108,908	$1,879,280	$1,592,951	$1,153,255	$212,645
Franchise royalties and fees	112,641	102,076	92,793	78,367	27,892
Fresh-dough and other product sales to franchisees	163,453	148,701	136,288	121,872	41,688
Total revenues	2,385,002	2,130,057	1,822,032	1,353,494	282,225
Bakery-cafe expenses:
Food and paper products	625,622	552,580	470,398	337599	63,370
Labor	625,457	559,446	484,014	370,595	63,172
Occupancy	148,816	130,793	115,290	95,996	15,408
Other operating expenses	295,539	256,029	216,237	155,396	27,971
Total bakery-cafe expenses	695,434	1,498,848	1,285,939	959,586	169,921
Fresh-dough and other product costs of sales to franchisees	142,160	131,006	116,267	100,229	38,432
Depreciation and amortization	106,523	90,939	79,899	67,162	13,794
General and administrative expenses	123,335	117,932	113,083	83,169	24,986
Preopening expenses	7,794	8,462	6,585	2,451	1,051
Total costs and expenses	2,075,246	1,847,187	1,601,773	1,212,597	248,184
Operating profit	309,756	282,870	220,259	140,897	34,041
Interest expense	1,053	1,082	822	700	32
Other (income) expense, net	(4,017)	(1,208)	(466)	273	467
Income taxes	116,551	109,548	83,95	53,073	12,242
Less net income (loss) attributable to non-controlling interest	-	-	-	801	-
Net income to shareholders	$196,169	$173,448	$135,952	$86,050	$21,300
Earnings per share
Basic	$6.85	$5.94	$4.59	$2.8	$0.74
Diluted	6.81	5.89	4.55	2.78	0.71
Weighted-average shares outstanding
Basic	28,629	29,217	29,601	30,667	28,923
Diluted	28,794	29,455	29,903	30,979	29,891
Balance sheet data
Cash and cash equivalents	$125,245	$297, 141	$222,640	$246,400	$29,924
Short-term investments	-	-	186	-	9,149
Current assets	302,716	478,842	353,119	322,084	59,262
Total assets	1,180,862	1,268,163	1,027,322	837,165	195,431
Current liabilities	303,325	277,540	238,334	142,259	32,325
Total liabilities	480,970	446,244	372,246	240,129	32,587
Stockholders' equity	699,892	821,919	655,076	597,036	151,503
Cash flow data
Net cash provided by operating activities	$348,417	$289,456	$236,889	$214,904	$46,323
Net cash used in investing activities	(188,307)	(195,741)	(152,194)	(49,219)	(40,115)
Net cash (used in) provided by financing activities	(332,006)	(19,214)	(91,354)	6,005	5,664
Net (decrease) increase in cash and cash equivalents	(171,896)	74,501	(6,659)	171,690	11,872

Answer 1

YEAR:	2013	2012	2011	2009	2002
Net Income	$196169	173448	135952	86050	21300
Net Sales	2385002	2130057	1822032	1353494	282225
Total Assets	1180862	1268163	1027322	837165	195431
Total Equity	699892	821919	655076	597036	$151503
i)Net Income ratio	0.082	0.081	0.075	0.064	0.075
(NI/NS)
ii)Total Assets Turnover ratio	2.020	1.680	1.774	1.617	1.444
(NS/TA)
iii)Financial Leverage	1.687	1.543	1.568	1.402	1.290
(TA/TE)
DU PONT ANALYSIS:
Return on Equity	0.280	0.211	0.208	0.144	0.141
(i)X(ii)X(iii)

The company has been improving the return on equity since 2002. Thus, company

has been on growth track and providing good return to their shareholders.

answered by: anonymous