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Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Starbucks Corp., economic profit calculation

US$ in thousands

12 months ended:	Sep 28, 2025	Sep 29, 2024	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020
Net operating profit after taxes (NOPAT)¹	2,453,553)	4,408,732)	4,602,842)	3,732,356)	4,625,159)	1,475,541)
Cost of capital²	14.80%	15.17%	15.49%	15.37%	15.40%	14.85%
Invested capital³	24,013,900)	23,526,800)	22,171,000)	20,459,700)	23,683,800)	22,970,900)

Economic profit⁴	(1,100,229)	840,836)	1,169,484)	587,965)	977,490)	(1,935,248)

Based on: 10-K (reporting date: 2025-09-28), 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2025 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 2,453,553 – 14.80% × 24,013,900 = -1,100,229

The analysis of economic profit reveals a period of significant volatility, characterized by a transition from value destruction to value creation and a subsequent return to negative economic profit. The overall trend indicates that the company struggled to maintain a consistent spread between its return on invested capital and its cost of capital over the six-year period.

Net Operating Profit After Taxes (NOPAT): NOPAT exhibited substantial fluctuations, starting at 1,475,541 thousand USD in 2020 and peaking in 2021 at 4,625,159 thousand USD. Following a dip in 2022 and a recovery in 2023, a sharp decline is observed by September 2025, where NOPAT fell to 2,453,553 thousand USD. This downward trajectory in the final year significantly impacted the company's ability to generate economic value.
Invested Capital and Cost of Capital: Invested capital remained relatively stable, oscillating between 20,459,700 thousand USD and 24,013,900 thousand USD. A gradual increase in the capital base is noted from 2022 onward, reaching its peak in 2025. Simultaneously, the cost of capital remained remarkably consistent, hovering within a narrow range between 14.80% and 15.49%, suggesting that the volatility in economic profit was driven by operating performance rather than shifts in the weighted average cost of capital.
Economic Profit Trends: Economic profit began in a negative position in 2020 (-1,935,248 thousand USD) before shifting to positive territory between 2021 and 2024. The peak of value creation occurred in 2023, with an economic profit of 1,169,484 thousand USD. However, by 2025, economic profit reverted to a negative value of -1,100,229 thousand USD. This reversal indicates that the NOPAT generated in 2025 was insufficient to cover the capital charge associated with the 24,013,900 thousand USD of invested capital.

The correlation between the decline in NOPAT and the increase in invested capital in the final year resulted in a significant erosion of economic value. While the company demonstrated a capacity for value creation during the mid-period, the most recent data indicates a return to value destruction, as the return on capital fell below the required cost of capital.

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Starbucks Corp., NOPAT calculation

US$ in thousands

12 months ended:	Sep 28, 2025	Sep 29, 2024	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020
Net earnings attributable to Starbucks	1,856,400)	3,760,900)	4,124,500)	3,281,600)	4,199,300)	928,300)
Deferred income tax expense (benefit)¹	(11,700)	(13,600)	(59,300)	23,100)	(125,000)	(28,500)
Increase (decrease) in allowance for credit losses²	2,800)	(2,600)	(3,400)	1,600)	(1,500)	20,400)
Increase (decrease) in stored value card liability and deferred revenue³	(131,600)	(57,200)	(119,600)	(137,500)	4,100)	41,600)
Increase (decrease) in equity equivalents⁴	(140,500)	(73,400)	(182,300)	(112,800)	(122,400)	33,500)
Interest expense	542,600)	562,000)	550,100)	482,900)	469,800)	437,000)
Interest expense, operating lease liability⁵	389,858)	347,980)	285,203)	227,783)	224,733)	222,763)
Adjusted interest expense	932,458)	909,980)	835,303)	710,683)	694,533)	659,763)
Tax benefit of interest expense⁶	(195,816)	(191,096)	(175,414)	(149,244)	(145,852)	(138,550)
Adjusted interest expense, after taxes⁷	736,642)	718,884)	659,889)	561,440)	548,681)	521,212)
(Gain) loss on marketable securities	900)	1,200)	700)	400)	(1,800)	(4,900)
Investment income, before taxes	900)	1,200)	700)	400)	(1,800)	(4,900)
Tax expense (benefit) of investment income⁸	(189)	(252)	(147)	(84)	378)	1,029)
Investment income, after taxes⁹	711)	948)	553)	316)	(1,422)	(3,871)
Net income (loss) attributable to noncontrolling interest	300)	1,400)	200)	1,800)	1,000)	(3,600)
Net operating profit after taxes (NOPAT)	2,453,553)	4,408,732)	4,602,842)	3,732,356)	4,625,159)	1,475,541)

Based on: 10-K (reporting date: 2025-09-28), 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowance for credit losses.

³ Addition of increase (decrease) in stored value card liability and deferred revenue.

⁴ Addition of increase (decrease) in equity equivalents to net earnings attributable to Starbucks.

⁵ 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 10,536,700 × 3.70% = 389,858

⁶ 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 932,458 × 21.00% = 195,816

⁷ Addition of after taxes interest expense to net earnings attributable to Starbucks.

⁸ 2025 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= -900 × 21.00% = -189

⁹ Elimination of after taxes investment income.

The financial data reveals notable fluctuations in Starbucks Corp.'s profitability over the examined periods. Both net earnings attributable to the company and net operating profit after taxes (NOPAT) demonstrate cyclical trends with periods of significant increases followed by declines.

Net Earnings Attributable to Starbucks: The net earnings show a strong increase from approximately 928 million US dollars in late 2020 to over 4.1 billion in early 2021. Following this peak, there is a decline to around 3.28 billion in late 2022, then a rebound to about 4.12 billion in early 2023. Subsequently, net earnings decrease again to approximately 3.76 billion and further decline to 1.86 billion by late 2025. This pattern suggests volatility in profitability with significant year-to-year variation.
Net Operating Profit After Taxes (NOPAT): NOPAT trends closely parallel net earnings, starting at about 1.48 billion in 2020 and increasing sharply to over 4.62 billion in 2021. It then decreases to roughly 3.73 billion in 2022 before rising to nearly 4.60 billion in 2023. After this, NOPAT slightly declines to about 4.41 billion in 2024 and experiences a substantial drop to 2.45 billion by 2025. This indicates that operating efficiency and tax-related impacts also varied significantly over the time horizon, affecting profitability.

Overall, the data suggests that the company experienced pronounced growth in profitability around 2021 and 2023, but these gains were not consistently sustained into later periods. The declines toward 2025 could indicate emerging operational or market challenges impacting earnings and operating profit. This volatility warrants closer examination of underlying drivers such as cost management, revenue fluctuations, and external economic conditions influencing performance.

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Starbucks Corp., cash operating taxes calculation

US$ in thousands

12 months ended:	Sep 28, 2025	Sep 29, 2024	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020
Income tax expense	650,600)	1,207,300)	1,277,200)	948,500)	1,156,600)	239,700)
Less: Deferred income tax expense (benefit)	(11,700)	(13,600)	(59,300)	23,100)	(125,000)	(28,500)
Add: Tax savings from interest expense	195,816)	191,096)	175,414)	149,244)	145,852)	138,550)
Less: Tax imposed on investment income	(189)	(252)	(147)	(84)	378)	1,029)
Cash operating taxes	858,305)	1,412,248)	1,512,061)	1,074,728)	1,427,074)	405,721)

Based on: 10-K (reporting date: 2025-09-28), 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27).

The analysis of the tax-related financial data displays variable trends in both income tax expense and cash operating taxes over the observed periods.

Income Tax Expense: The income tax expense demonstrates a fluctuating pattern with an initial value of 239,700 thousand US dollars, substantially rising to a peak of 1,157,600 thousand US dollars by the second period. This peak is followed by a decrease to 948,500 thousand US dollars, then an increase again to 1,277,200 thousand US dollars, maintaining a relatively high level in the next period at 1,207,300 thousand US dollars before declining sharply to 650,600 thousand US dollars in the latest period. Overall, the trend suggests volatility with a recent downward correction.
Cash Operating Taxes: Cash operating taxes show a broadly similar trend marked by significant increases and decreases. Starting at 405,721 thousand US dollars, this figure rises steeply to 1,427,074 thousand US dollars in the subsequent year, then declines to 1,074,728 thousand US dollars. Subsequently, there is a rise to a peak of 1,512,061 thousand US dollars, followed by a slight decrease to 1,412,248 thousand US dollars before dropping significantly to 858,305 thousand US dollars in the last recorded period. This pattern suggests notable fluctuations with peaks that generally coincide with the trends observed in income tax expenses.

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Starbucks Corp., invested capital calculation (financing approach)

US$ in thousands

	Sep 28, 2025	Sep 29, 2024	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020
Current portion of long-term debt	1,498,900)	1,248,900)	1,818,600)	1,749,000)	998,900)	1,249,900)
Long-term debt, excluding current portion	14,575,900)	14,319,500)	13,547,600)	13,119,900)	13,616,900)	14,659,600)
Operating lease liability¹	10,536,700)	10,234,700)	9,200,100)	8,760,900)	8,989,300)	8,910,500)
Total reported debt & leases	26,611,500)	25,803,100)	24,566,300)	23,629,800)	23,605,100)	24,820,000)
Shareholders’ deficit	(8,096,600)	(7,448,900)	(7,994,800)	(8,706,600)	(5,321,200)	(7,805,100)
Net deferred tax (assets) liabilities²	(1,776,500)	(1,745,600)	(1,755,200)	(1,681,100)	(1,726,300)	(1,631,800)
Allowance for credit losses³	24,000)	21,200)	23,800)	27,200)	25,600)	27,100)
Stored value card liability and deferred revenue⁴	7,613,200)	7,744,800)	7,802,000)	7,921,600)	8,059,100)	8,055,000)
Equity equivalents⁵	5,860,700)	6,020,400)	6,070,600)	6,267,700)	6,358,400)	6,450,300)
Accumulated other comprehensive (income) loss, net of tax⁶	459,300)	428,800)	778,200)	463,200)	(147,200)	364,600)
Noncontrolling interests	7,400)	7,300)	7,000)	7,900)	6,700)	5,700)
Adjusted shareholders’ deficit	(1,769,200)	(992,400)	(1,139,000)	(1,967,800)	896,700)	(984,500)
Work in progress⁷	(334,300)	(750,900)	(607,500)	(558,700)	(374,100)	(377,300)
Marketable securities⁸	(494,100)	(533,000)	(648,800)	(643,600)	(443,900)	(487,300)
Invested capital	24,013,900)	23,526,800)	22,171,000)	20,459,700)	23,683,800)	22,970,900)

Based on: 10-K (reporting date: 2025-09-28), 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of stored value card liability and deferred revenue.

⁵ Addition of equity equivalents to shareholders’ deficit.

⁶ Removal of accumulated other comprehensive income.

⁷ Subtraction of work in progress.

⁸ Subtraction of marketable securities.

The financial data over the span of six years reveals several key trends concerning debt, shareholders' equity, and invested capital.

Total Reported Debt & Leases: The total reported debt and leases initially decreased from approximately 24.82 billion USD in 2020 to around 23.61 billion USD in 2021, indicating a reduction in debt levels. However, from 2021 onward, there was a consistent upward trend, reaching approximately 26.61 billion USD by 2025. This suggests a gradual increase in borrowing or lease obligations over this period, possibly reflecting increased leverage or financing activities.
Shareholders’ Deficit: The shareholders’ deficit showed considerable fluctuation across the years. Starting with a deficit of about -7.81 billion USD in 2020, it improved significantly to approximately -5.32 billion USD in 2021. This improvement could indicate a reduction in accumulated losses or liabilities exceeding equity. However, the deficit then worsened to about -8.71 billion USD in 2022, before improving slightly in the subsequent years but remaining negative through 2025. The persistent negative shareholders’ equity highlights ongoing challenges in equity capitalization or retained earnings, signaling potential financial stress or large accumulations of losses.
Invested Capital: Invested capital showed an initial increase from 22.97 billion USD in 2020 to 23.68 billion USD in 2021, followed by a notable decline to approximately 20.46 billion USD in 2022. After 2022, invested capital steadily increased year over year, reaching around 24.01 billion USD in 2025. This pattern may reflect variations in total capital deployed in the business, possibly influenced by asset acquisitions, disposals, or changes in working capital management. The recovery and growth in invested capital post-2022 suggest renewed investment or improved operational capacity.

Overall, the company displayed a fluctuating financial structure with increasing debt levels in recent years alongside a persistent negative shareholders’ deficit, which raises concerns regarding financial stability. The invested capital trend indicates some volatility but a general recovery trend after 2022, potentially aligned with strategic investments or operational enhancements.

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Starbucks Corp., cost of capital calculations

Sep 28, 2025

	Capital (fair value)¹	Weights					Cost of capital
Equity²	96,403,338)	96,403,338)	÷	121,908,238)	=	0.79	0.79	×	17.91%	=	14.16%
Debt³	14,968,200)	14,968,200)	÷	121,908,238)	=	0.12	0.12	×	3.97% × (1 – 21.00%)	=	0.39%
Operating lease liability⁴	10,536,700)	10,536,700)	÷	121,908,238)	=	0.09	0.09	×	3.70% × (1 – 21.00%)	=	0.25%
Total:	121,908,238)					1.00					14.80%

Based on: 10-K (reporting date: 2025-09-28).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Sep 29, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	111,407,188)	111,407,188)	÷	136,288,588)	=	0.82	0.82	×	17.91%	=	14.64%
Debt³	14,646,700)	14,646,700)	÷	136,288,588)	=	0.11	0.11	×	3.83% × (1 – 21.00%)	=	0.33%
Operating lease liability⁴	10,234,700)	10,234,700)	÷	136,288,588)	=	0.08	0.08	×	3.40% × (1 – 21.00%)	=	0.20%
Total:	136,288,588)					1.00					15.17%

Based on: 10-K (reporting date: 2024-09-29).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Oct 1, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	120,001,419)	120,001,419)	÷	142,661,219)	=	0.84	0.84	×	17.91%	=	15.06%
Debt³	13,459,700)	13,459,700)	÷	142,661,219)	=	0.09	0.09	×	3.55% × (1 – 21.00%)	=	0.26%
Operating lease liability⁴	9,200,100)	9,200,100)	÷	142,661,219)	=	0.06	0.06	×	3.10% × (1 – 21.00%)	=	0.16%
Total:	142,661,219)					1.00					15.49%

Based on: 10-K (reporting date: 2023-10-01).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Oct 2, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	112,427,010)	112,427,010)	÷	134,414,910)	=	0.84	0.84	×	17.91%	=	14.98%
Debt³	13,227,000)	13,227,000)	÷	134,414,910)	=	0.10	0.10	×	3.30% × (1 – 21.00%)	=	0.26%
Operating lease liability⁴	8,760,900)	8,760,900)	÷	134,414,910)	=	0.07	0.07	×	2.60% × (1 – 21.00%)	=	0.13%
Total:	134,414,910)					1.00					15.37%

Based on: 10-K (reporting date: 2022-10-02).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Oct 3, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	129,967,096)	129,967,096)	÷	154,970,496)	=	0.84	0.84	×	17.91%	=	15.02%
Debt³	16,014,100)	16,014,100)	÷	154,970,496)	=	0.10	0.10	×	3.29% × (1 – 21.00%)	=	0.27%
Operating lease liability⁴	8,989,300)	8,989,300)	÷	154,970,496)	=	0.06	0.06	×	2.50% × (1 – 21.00%)	=	0.11%
Total:	154,970,496)					1.00					15.40%

Based on: 10-K (reporting date: 2021-10-03).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Sep 27, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	109,776,161)	109,776,161)	÷	136,624,161)	=	0.80	0.80	×	17.91%	=	14.39%
Debt³	17,937,500)	17,937,500)	÷	136,624,161)	=	0.13	0.13	×	3.19% × (1 – 21.00%)	=	0.33%
Operating lease liability⁴	8,910,500)	8,910,500)	÷	136,624,161)	=	0.07	0.07	×	2.50% × (1 – 21.00%)	=	0.13%
Total:	136,624,161)					1.00					14.85%

Based on: 10-K (reporting date: 2020-09-27).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Starbucks Corp., economic spread ratio calculation, comparison to benchmarks

	Sep 28, 2025	Sep 29, 2024	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020
Selected Financial Data (US$ in thousands)
Economic profit¹	(1,100,229)	840,836)	1,169,484)	587,965)	977,490)	(1,935,248)
Invested capital²	24,013,900)	23,526,800)	22,171,000)	20,459,700)	23,683,800)	22,970,900)
Performance Ratio
Economic spread ratio³	-4.58%	3.57%	5.27%	2.87%	4.13%	-8.42%
Benchmarks
Economic Spread Ratio, Competitors⁴
Airbnb Inc.	24.34%	24.16%	9.42%	11.05%	-11.05%	—
Booking Holdings Inc.	24.27%	29.13%	14.67%	3.82%	-13.63%	—
Chipotle Mexican Grill Inc.	9.23%	8.69%	7.11%	2.91%	-1.58%	—
DoorDash, Inc.	-19.10%	-27.15%	-39.59%	-53.36%	-39.87%	—
McDonald’s Corp.	9.25%	8.76%	8.84%	6.04%	8.45%	—

Based on: 10-K (reporting date: 2025-09-28), 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -1,100,229 ÷ 24,013,900 = -4.58%

⁴ Click competitor name to see calculations.

The financial performance regarding economic value addition exhibits significant volatility over the observed six-year period, characterized by an initial recovery, a mid-period peak, and a subsequent decline into negative territory.

Economic Profit Trends: A pattern of instability is evident, beginning with a substantial deficit of approximately 1.94 billion USD in 2020. A recovery occurred in 2021, with economic profit reaching a peak of 1.17 billion USD in 2023. However, a sharp reversal is noted in 2025, where economic profit fell to -1.10 billion USD, indicating that the return on capital failed to exceed the cost of capital by the end of the period.
Invested Capital Dynamics: Invested capital remained relatively stable, fluctuating between a low of 20.46 billion USD in 2022 and a high of 24.01 billion USD in 2025. A consistent upward trajectory in the capital base is observed from 2023 through 2025. The fact that the capital base reached its highest point in 2025 while economic profit turned negative suggests a decoupling between capital investment and value generation.
Economic Spread Ratio Analysis: The economic spread ratio closely mirrors the fluctuations in economic profit, oscillating from a low of -8.42% in 2020 to a peak of 5.27% in 2023. The positive spread maintained between 2021 and 2024 indicates a period of value creation where returns exceeded the cost of capital. The shift to a negative spread of -4.58% in 2025 represents a significant erosion of this value, signaling that the efficiency of the invested capital diminished substantially.

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Starbucks Corp., economic profit margin calculation, comparison to benchmarks

	Sep 28, 2025	Sep 29, 2024	Oct 1, 2023	Oct 2, 2022	Oct 3, 2021	Sep 27, 2020
Selected Financial Data (US$ in thousands)
Economic profit¹	(1,100,229)	840,836)	1,169,484)	587,965)	977,490)	(1,935,248)

Net revenues	37,184,400)	36,176,200)	35,975,600)	32,250,300)	29,060,600)	23,518,000)
Add: Increase (decrease) in stored value card liability and deferred revenue	(131,600)	(57,200)	(119,600)	(137,500)	4,100)	41,600)
Adjusted net revenues	37,052,800)	36,119,000)	35,856,000)	32,112,800)	29,064,700)	23,559,600)
Performance Ratio
Economic profit margin²	-2.97%	2.33%	3.26%	1.83%	3.36%	-8.21%
Benchmarks
Economic Profit Margin, Competitors³
Airbnb Inc.	11.34%	13.12%	5.48%	8.78%	-9.99%	—
Booking Holdings Inc.	11.64%	15.92%	7.84%	3.05%	-18.66%	—
Chipotle Mexican Grill Inc.	5.64%	5.23%	4.31%	1.81%	-1.15%	—
DoorDash, Inc.	-15.66%	-15.85%	-24.01%	-43.12%	-25.93%	—
McDonald’s Corp.	18.44%	16.79%	17.34%	11.83%	17.37%	—

Based on: 10-K (reporting date: 2025-09-28), 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27).

¹ Economic profit. See details »

² 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted net revenues
= 100 × -1,100,229 ÷ 37,052,800 = -2.97%

³ Click competitor name to see calculations.

The analysis of economic value creation reveals a significant divergence between revenue growth and the ability to generate consistent economic profit. While adjusted net revenues exhibited a continuous upward trajectory over the six-year period, economic profit remained volatile, ultimately returning to a deficit in the final year.

Revenue Growth Trends: Adjusted net revenues increased steadily from US$ 23.56 billion in 2020 to US$ 37.05 billion by 2025. This represents a sustained expansion of top-line performance throughout the entire analyzed timeframe.
Economic Profit Volatility: Economic profit experienced substantial fluctuations, starting with a deficit of US$ 1.94 billion in 2020 before recovering to positive territory in 2021. After reaching a peak of US$ 1.17 billion in 2023, the figure declined to US$ 840.84 million in 2024 and dropped sharply to a loss of US$ 1.10 billion in 2025. This indicates that the cost of capital exceeded the net operating profit in the most recent period.
Economic Profit Margin Performance: The economic profit margin mirrored the instability of absolute economic profit. From a low of -8.21% in 2020, the margin improved to a peak of 3.26% in 2023. This positive trend reversed in 2024 with a decrease to 2.33%, ending in a negative margin of -2.97% in 2025. The correlation between rising revenues and a declining economic profit margin in the final two years suggests a decrease in the efficiency of value creation relative to the capital employed.

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Starbucks Corp. (NASDAQ:SBUX)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin