Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Starbucks Corp. (NASDAQ:SBUX)

Analysis of Investments

Advanced level

Adjustment to Net Income (Loss): Mark to Market Available-for-sale Securities

Starbucks Corp., adjustment to net earnings attributable to Starbucks

US$ in thousands

Microsoft Excel LibreOffice Calc
12 months ended: Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017 Oct 2, 2016 Sep 27, 2015
Net earnings attributable to Starbucks (as reported) 928,300  3,599,200  4,518,300  2,884,700  2,817,700  2,757,400 
Add: Unrealized holding gains (losses) on available-for-sale securities, net of tax 6,500  8,200  (5,100) (6,600) 2,200  900 
Net earnings attributable to Starbucks (adjusted) 934,800  3,607,400  4,513,200  2,878,100  2,819,900  2,758,300 

Based on: 10-K (filing date: 2020-11-12), 10-K (filing date: 2019-11-15), 10-K (filing date: 2018-11-16), 10-K (filing date: 2017-11-17), 10-K (filing date: 2016-11-18), 10-K (filing date: 2015-11-12).

Adjusted Profitability Ratios: Mark to Market Available-for-sale Securities (Summary)

Starbucks Corp., adjusted profitability ratios

Microsoft Excel LibreOffice Calc
Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017 Oct 2, 2016 Sep 27, 2015
Net Profit Margin
Reported net profit margin 3.95% 13.58% 18.28% 12.89% 13.22% 14.39%
Adjusted net profit margin 3.97% 13.61% 18.26% 12.86% 13.23% 14.39%
Return on Equity (ROE)
Reported ROE — — 386.34% 52.93% 47.89% 47.39%
Adjusted ROE — — 385.91% 52.81% 47.92% 47.41%
Return on Assets (ROA)
Reported ROA 3.16% 18.73% 18.70% 20.08% 19.66% 22.15%
Adjusted ROA 3.18% 18.77% 18.68% 20.03% 19.68% 22.16%

Based on: 10-K (filing date: 2020-11-12), 10-K (filing date: 2019-11-15), 10-K (filing date: 2018-11-16), 10-K (filing date: 2017-11-17), 10-K (filing date: 2016-11-18), 10-K (filing date: 2015-11-12).

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Starbucks Corp.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Starbucks Corp.’s adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.

Starbucks Corp., Profitability Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel LibreOffice Calc
Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017 Oct 2, 2016 Sep 27, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net earnings attributable to Starbucks 928,300  3,599,200  4,518,300  2,884,700  2,817,700  2,757,400 
Net revenues 23,518,000  26,508,600  24,719,500  22,386,800  21,315,900  19,162,700 
Profitability Ratio
Net profit margin1 3.95% 13.58% 18.28% 12.89% 13.22% 14.39%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Starbucks 934,800  3,607,400  4,513,200  2,878,100  2,819,900  2,758,300 
Net revenues 23,518,000  26,508,600  24,719,500  22,386,800  21,315,900  19,162,700 
Profitability Ratio
Adjusted net profit margin2 3.97% 13.61% 18.26% 12.86% 13.23% 14.39%

Based on: 10-K (filing date: 2020-11-12), 10-K (filing date: 2019-11-15), 10-K (filing date: 2018-11-16), 10-K (filing date: 2017-11-17), 10-K (filing date: 2016-11-18), 10-K (filing date: 2015-11-12).

2020 Calculations

1 Net profit margin = 100 × Net earnings attributable to Starbucks ÷ Net revenues
= 100 × 928,300 ÷ 23,518,000 = 3.95%

2 Adjusted net profit margin = 100 × Adjusted net earnings attributable to Starbucks ÷ Net revenues
= 100 × 934,800 ÷ 23,518,000 = 3.97%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by revenue. Starbucks Corp.’s adjusted net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Adjusted Return on Equity (ROE)

Microsoft Excel LibreOffice Calc
Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017 Oct 2, 2016 Sep 27, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net earnings attributable to Starbucks 928,300  3,599,200  4,518,300  2,884,700  2,817,700  2,757,400 
Shareholders’ equity (deficit) (7,805,100) (6,232,200) 1,169,500  5,450,100  5,884,000  5,818,000 
Profitability Ratio
ROE1 — — 386.34% 52.93% 47.89% 47.39%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Starbucks 934,800  3,607,400  4,513,200  2,878,100  2,819,900  2,758,300 
Shareholders’ equity (deficit) (7,805,100) (6,232,200) 1,169,500  5,450,100  5,884,000  5,818,000 
Profitability Ratio
Adjusted ROE2 — — 385.91% 52.81% 47.92% 47.41%

Based on: 10-K (filing date: 2020-11-12), 10-K (filing date: 2019-11-15), 10-K (filing date: 2018-11-16), 10-K (filing date: 2017-11-17), 10-K (filing date: 2016-11-18), 10-K (filing date: 2015-11-12).

2020 Calculations

1 ROE = 100 × Net earnings attributable to Starbucks ÷ Shareholders’ equity (deficit)
= 100 × 928,300 ÷ -7,805,100 = —

2 Adjusted ROE = 100 × Adjusted net earnings attributable to Starbucks ÷ Shareholders’ equity (deficit)
= 100 × 934,800 ÷ -7,805,100 = —

Adjusted Return on Assets (ROA)

Microsoft Excel LibreOffice Calc
Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017 Oct 2, 2016 Sep 27, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net earnings attributable to Starbucks 928,300  3,599,200  4,518,300  2,884,700  2,817,700  2,757,400 
Total assets 29,374,500  19,219,600  24,156,400  14,365,600  14,329,500  12,446,100 
Profitability Ratio
ROA1 3.16% 18.73% 18.70% 20.08% 19.66% 22.15%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Starbucks 934,800  3,607,400  4,513,200  2,878,100  2,819,900  2,758,300 
Total assets 29,374,500  19,219,600  24,156,400  14,365,600  14,329,500  12,446,100 
Profitability Ratio
Adjusted ROA2 3.18% 18.77% 18.68% 20.03% 19.68% 22.16%

Based on: 10-K (filing date: 2020-11-12), 10-K (filing date: 2019-11-15), 10-K (filing date: 2018-11-16), 10-K (filing date: 2017-11-17), 10-K (filing date: 2016-11-18), 10-K (filing date: 2015-11-12).

2020 Calculations

1 ROA = 100 × Net earnings attributable to Starbucks ÷ Total assets
= 100 × 928,300 ÷ 29,374,500 = 3.16%

2 Adjusted ROA = 100 × Adjusted net earnings attributable to Starbucks ÷ Total assets
= 100 × 934,800 ÷ 29,374,500 = 3.18%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by total assets. Starbucks Corp.’s adjusted ROA improved from 2018 to 2019 but then deteriorated significantly from 2019 to 2020.