Starbucks (NASDAQ: SBUX) reported poor cash flow from operations for the 9 month period ending June 30,2014. A closer look into the 3rd quarter 10Q reveals cash flow was actually robust but was negativity effected by the Kraft litigation.
Cash Flow from Operations:
FY2013 nine months: $2.03 billion
FY2014 nine months : ($133 million)
from 1st quarter 10Q: (page 28)
- Cash used by operating activities was $1.4 billion for the first quarter of fiscal 2014, compared to cash provided by operating activities of $1.1 billion for the same period in fiscal 2013. The decrease was driven by the first quarter payment of $2.8 billion for the Kraft arbitration matter discussed above. This was partially offset by cash provided by operating activities of $1.4 billion resulting from increased earnings and improvements in working capital accounts.