Stock Analysis on Net

Starbucks Corp. (NASDAQ:SBUX)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

Starbucks Corp., balance sheet: goodwill and intangible assets

US$ in thousands

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Acquired and reacquired rights 990,000 1,141,500 1,116,100 1,075,000 1,081,700 328,800
Acquired trade secrets and processes 27,600 27,600 27,600 27,600 27,600 27,600
Trade names, trademarks and patents 124,600 126,300 124,800 40,600 33,000 31,500
Licensing agreements 19,300 18,800 16,600 16,200 14,300 14,400
Other finite-lived intangible assets 20,600 24,000 22,800 22,000 25,600 6,700
Finite-lived intangible assets, gross carrying amount 1,182,100 1,338,200 1,307,900 1,181,400 1,182,200 409,000
Accumulated amortization (1,123,700) (1,084,700) (850,800) (603,000) (371,000) (194,800)
Finite-lived intangible assets, net carrying amount 58,400 253,500 457,100 578,400 811,200 214,200
Trade names, trademarks and patents 97,500 96,400 95,000 203,400 215,900 212,100
Other indefinite-lived intangible assets 15,100 15,100
Indefinite-lived intangible assets 97,500 96,400 95,000 203,400 231,000 227,200
Other intangible assets 155,900 349,900 552,100 781,800 1,042,200 441,400
Goodwill 3,283,500 3,677,300 3,597,200 3,490,800 3,541,600 1,539,200
Other intangible assets and goodwill 3,439,400 4,027,200 4,149,300 4,272,600 4,583,800 1,980,600

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

Item Description The company
Other intangible assets Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Starbucks Corp. other intangible assets decreased from 2020 to 2021 and from 2021 to 2022.
Goodwill Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Starbucks Corp. goodwill increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Other intangible assets and goodwill Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges. Starbucks Corp. other intangible assets and goodwill decreased from 2020 to 2021 and from 2021 to 2022.

Adjustments to Financial Statements: Removal of Goodwill

Starbucks Corp., adjustments to financial statements

US$ in thousands

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Adjustment to Total Assets
Total assets (as reported) 27,978,400 31,392,600 29,374,500 19,219,600 24,156,400 14,365,600
Less: Goodwill 3,283,500 3,677,300 3,597,200 3,490,800 3,541,600 1,539,200
Total assets (adjusted) 24,694,900 27,715,300 25,777,300 15,728,800 20,614,800 12,826,400
Adjustment to Shareholders’ Equity (deficit)
Shareholders’ equity (deficit) (as reported) (8,706,600) (5,321,200) (7,805,100) (6,232,200) 1,169,500 5,450,100
Less: Goodwill 3,283,500 3,677,300 3,597,200 3,490,800 3,541,600 1,539,200
Shareholders’ equity (deficit) (adjusted) (11,990,100) (8,998,500) (11,402,300) (9,723,000) (2,372,100) 3,910,900
Adjustment to Net Earnings Attributable To Starbucks
Net earnings attributable to Starbucks (as reported) 3,281,600 4,199,300 928,300 3,599,200 4,518,300 2,884,700
Add: Goodwill impairment 10,500 37,600 87,200
Net earnings attributable to Starbucks (adjusted) 3,281,600 4,199,300 928,300 3,609,700 4,555,900 2,971,900

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).


Starbucks Corp., Financial Data: Reported vs. Adjusted


Adjusted Financial Ratios: Removal of Goodwill (Summary)

Starbucks Corp., adjusted financial ratios

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Net Profit Margin
Reported net profit margin 10.18% 14.45% 3.95% 13.58% 18.28% 12.89%
Adjusted net profit margin 10.18% 14.45% 3.95% 13.62% 18.43% 13.28%
Total Asset Turnover
Reported total asset turnover 1.15 0.93 0.80 1.38 1.02 1.56
Adjusted total asset turnover 1.31 1.05 0.91 1.69 1.20 1.75
Financial Leverage
Reported financial leverage 20.66 2.64
Adjusted financial leverage 3.28
Return on Equity (ROE)
Reported ROE 386.34% 52.93%
Adjusted ROE 75.99%
Return on Assets (ROA)
Reported ROA 11.73% 13.38% 3.16% 18.73% 18.70% 20.08%
Adjusted ROA 13.29% 15.15% 3.60% 22.95% 22.10% 23.17%

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Starbucks Corp. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Starbucks Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Starbucks Corp. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Starbucks Corp., Financial Ratios: Reported vs. Adjusted


Adjusted Net Profit Margin

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net earnings attributable to Starbucks 3,281,600 4,199,300 928,300 3,599,200 4,518,300 2,884,700
Net revenues 32,250,300 29,060,600 23,518,000 26,508,600 24,719,500 22,386,800
Profitability Ratio
Net profit margin1 10.18% 14.45% 3.95% 13.58% 18.28% 12.89%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Starbucks 3,281,600 4,199,300 928,300 3,609,700 4,555,900 2,971,900
Net revenues 32,250,300 29,060,600 23,518,000 26,508,600 24,719,500 22,386,800
Profitability Ratio
Adjusted net profit margin2 10.18% 14.45% 3.95% 13.62% 18.43% 13.28%

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

2022 Calculations

1 Net profit margin = 100 × Net earnings attributable to Starbucks ÷ Net revenues
= 100 × 3,281,600 ÷ 32,250,300 = 10.18%

2 Adjusted net profit margin = 100 × Adjusted net earnings attributable to Starbucks ÷ Net revenues
= 100 × 3,281,600 ÷ 32,250,300 = 10.18%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Starbucks Corp. adjusted net profit margin ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Adjusted Total Asset Turnover

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net revenues 32,250,300 29,060,600 23,518,000 26,508,600 24,719,500 22,386,800
Total assets 27,978,400 31,392,600 29,374,500 19,219,600 24,156,400 14,365,600
Activity Ratio
Total asset turnover1 1.15 0.93 0.80 1.38 1.02 1.56
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net revenues 32,250,300 29,060,600 23,518,000 26,508,600 24,719,500 22,386,800
Adjusted total assets 24,694,900 27,715,300 25,777,300 15,728,800 20,614,800 12,826,400
Activity Ratio
Adjusted total asset turnover2 1.31 1.05 0.91 1.69 1.20 1.75

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

2022 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 32,250,300 ÷ 27,978,400 = 1.15

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 32,250,300 ÷ 24,694,900 = 1.31

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Starbucks Corp. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Financial Leverage

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
As Reported
Selected Financial Data (US$ in thousands)
Total assets 27,978,400 31,392,600 29,374,500 19,219,600 24,156,400 14,365,600
Shareholders’ equity (deficit) (8,706,600) (5,321,200) (7,805,100) (6,232,200) 1,169,500 5,450,100
Solvency Ratio
Financial leverage1 20.66 2.64
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets 24,694,900 27,715,300 25,777,300 15,728,800 20,614,800 12,826,400
Adjusted shareholders’ equity (deficit) (11,990,100) (8,998,500) (11,402,300) (9,723,000) (2,372,100) 3,910,900
Solvency Ratio
Adjusted financial leverage2 3.28

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

2022 Calculations

1 Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 27,978,400 ÷ -8,706,600 =

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity (deficit)
= 24,694,900 ÷ -11,990,100 =


Adjusted Return on Equity (ROE)

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net earnings attributable to Starbucks 3,281,600 4,199,300 928,300 3,599,200 4,518,300 2,884,700
Shareholders’ equity (deficit) (8,706,600) (5,321,200) (7,805,100) (6,232,200) 1,169,500 5,450,100
Profitability Ratio
ROE1 386.34% 52.93%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Starbucks 3,281,600 4,199,300 928,300 3,609,700 4,555,900 2,971,900
Adjusted shareholders’ equity (deficit) (11,990,100) (8,998,500) (11,402,300) (9,723,000) (2,372,100) 3,910,900
Profitability Ratio
Adjusted ROE2 75.99%

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

2022 Calculations

1 ROE = 100 × Net earnings attributable to Starbucks ÷ Shareholders’ equity (deficit)
= 100 × 3,281,600 ÷ -8,706,600 =

2 Adjusted ROE = 100 × Adjusted net earnings attributable to Starbucks ÷ Adjusted shareholders’ equity (deficit)
= 100 × 3,281,600 ÷ -11,990,100 =


Adjusted Return on Assets (ROA)

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net earnings attributable to Starbucks 3,281,600 4,199,300 928,300 3,599,200 4,518,300 2,884,700
Total assets 27,978,400 31,392,600 29,374,500 19,219,600 24,156,400 14,365,600
Profitability Ratio
ROA1 11.73% 13.38% 3.16% 18.73% 18.70% 20.08%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Starbucks 3,281,600 4,199,300 928,300 3,609,700 4,555,900 2,971,900
Adjusted total assets 24,694,900 27,715,300 25,777,300 15,728,800 20,614,800 12,826,400
Profitability Ratio
Adjusted ROA2 13.29% 15.15% 3.60% 22.95% 22.10% 23.17%

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

2022 Calculations

1 ROA = 100 × Net earnings attributable to Starbucks ÷ Total assets
= 100 × 3,281,600 ÷ 27,978,400 = 11.73%

2 Adjusted ROA = 100 × Adjusted net earnings attributable to Starbucks ÷ Adjusted total assets
= 100 × 3,281,600 ÷ 24,694,900 = 13.29%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Starbucks Corp. adjusted ROA improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.