Stock Analysis on Net

Starbucks Corp. (NASDAQ:SBUX)

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Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.

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Return on Invested Capital (ROIC)

Starbucks Corp., ROIC calculation, comparison to benchmarks

Microsoft Excel
Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1
Invested capital2
Performance Ratio
ROIC3
Benchmarks
ROIC, Competitors4
Airbnb Inc.
Booking Holdings Inc.
Carnival Corp. & plc
Chipotle Mexican Grill Inc.
McDonald’s Corp.

Based on: 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), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

1 NOPAT. See details »

2 Invested capital. See details »

3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Starbucks Corp. ROIC deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level.

Decomposition of ROIC

Starbucks Corp., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Oct 1, 2023 = × ×
Oct 2, 2022 = × ×
Oct 3, 2021 = × ×
Sep 27, 2020 = × ×
Sep 29, 2019 = × ×
Sep 30, 2018 = × ×

Based on: 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), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the increase in return on invested capital (ROIC) over 2023 year is the increase in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Starbucks Corp., OPM calculation, comparison to benchmarks

Microsoft Excel
Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1
Add: Cash operating taxes2
Net operating profit before taxes (NOPBT)
 
Net revenues
Add: Increase (decrease) in stored value card liability and deferred revenue
Adjusted net revenues
Profitability Ratio
OPM3
Benchmarks
OPM, Competitors4
Airbnb Inc.
Booking Holdings Inc.
Carnival Corp. & plc
Chipotle Mexican Grill Inc.
McDonald’s Corp.

Based on: 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), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
OPM = 100 × NOPBT ÷ Adjusted net revenues
= 100 × ÷ =

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Starbucks Corp. OPM deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023.

Turnover of Capital (TO)

Starbucks Corp., TO calculation, comparison to benchmarks

Microsoft Excel
Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018
Selected Financial Data (US$ in thousands)
Net revenues
Add: Increase (decrease) in stored value card liability and deferred revenue
Adjusted net revenues
 
Invested capital1
Efficiency Ratio
TO2
Benchmarks
TO, Competitors3
Airbnb Inc.
Booking Holdings Inc.
Carnival Corp. & plc
Chipotle Mexican Grill Inc.
McDonald’s Corp.

Based on: 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), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

1 Invested capital. See details »

2 2023 Calculation
TO = Adjusted net revenues ÷ Invested capital
= ÷ =

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Starbucks Corp. TO improved from 2021 to 2022 and from 2022 to 2023.

Effective Cash Tax Rate (CTR)

Starbucks Corp., CTR calculation, comparison to benchmarks

Microsoft Excel
Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1
Add: Cash operating taxes2
Net operating profit before taxes (NOPBT)
Tax Rate
CTR3
Benchmarks
CTR, Competitors4
Airbnb Inc.
Booking Holdings Inc.
Carnival Corp. & plc
Chipotle Mexican Grill Inc.
McDonald’s Corp.

Based on: 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), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Starbucks Corp. CTR decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.