Return on Capital (ROC)
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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- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Net Profit Margin since 2005
- Current Ratio since 2005
- Debt to Equity since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Debt
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Return on Invested Capital (ROIC)
Starbucks Corp., ROIC calculation, comparison to benchmarks
| Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | Sep 30, 2018 | Oct 1, 2017 | Oct 2, 2016 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net operating profit after taxes (NOPAT)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| ROIC3 | |||||||
| Benchmarks | |||||||
| ROIC, Competitors4 | |||||||
| Carnival Corp. & plc | |||||||
| McDonald’s Corp. | |||||||
Based on: 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), 10-K (reporting date: 2016-10-02).
1 NOPAT. See details »
2 Invested capital. See details »
3 2021 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 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Decomposition of ROIC
Starbucks Corp., decomposition of ROIC
| ROIC | = | OPM1 | × | TO2 | × | 1 – CTR3 | |
|---|---|---|---|---|---|---|---|
| Oct 3, 2021 | = | × | × | ||||
| Sep 27, 2020 | = | × | × | ||||
| Sep 29, 2019 | = | × | × | ||||
| Sep 30, 2018 | = | × | × | ||||
| Oct 1, 2017 | = | × | × | ||||
| Oct 2, 2016 | = | × | × |
Based on: 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), 10-K (reporting date: 2016-10-02).
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 2021 year is the increase in profitability measured by operating profit margin (OPM) ratio.
Operating Profit Margin (OPM)
Starbucks Corp., OPM calculation, comparison to benchmarks
| Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | Sep 30, 2018 | Oct 1, 2017 | Oct 2, 2016 | ||
|---|---|---|---|---|---|---|---|
| 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 | |||||||
| Carnival Corp. & plc | |||||||
| McDonald’s Corp. | |||||||
Based on: 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), 10-K (reporting date: 2016-10-02).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2021 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 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level. |
Turnover of Capital (TO)
Starbucks Corp., TO calculation, comparison to benchmarks
| Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | Sep 30, 2018 | Oct 1, 2017 | Oct 2, 2016 | ||
|---|---|---|---|---|---|---|---|
| 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 | |||||||
| Carnival Corp. & plc | |||||||
| McDonald’s Corp. | |||||||
Based on: 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), 10-K (reporting date: 2016-10-02).
1 Invested capital. See details »
2 2021 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 deteriorated from 2019 to 2020 but then improved from 2020 to 2021 not reaching 2019 level. |
Effective Cash Tax Rate (CTR)
Starbucks Corp., CTR calculation, comparison to benchmarks
| Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | Sep 30, 2018 | Oct 1, 2017 | Oct 2, 2016 | ||
|---|---|---|---|---|---|---|---|
| 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 | |||||||
| Carnival Corp. & plc | |||||||
| McDonald’s Corp. | |||||||
Based on: 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), 10-K (reporting date: 2016-10-02).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2021 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 2019 to 2020 but then slightly increased from 2020 to 2021. |