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Starbucks Corp  (NAS:SBUX) EBIT: $4,476 Mil (TTM As of Jun. 2017)

Starbucks Corp's earnings before interest and taxes (EBIT) for the three months ended in Jun. 2017 was $1,076 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Jun. 2017 was $4,476 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Starbucks Corp's annualized ROC % for the quarter that ended in Jun. 2017 was 39.34%. Starbucks Corp's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2017 was 92.91%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Starbucks Corp's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Jun. 2017 was 5.25%.


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Starbucks Corp Annual Data

Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17
EBIT Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -201.80 3,223.80 3,973.50 4,279.90 4,410.00

Starbucks Corp Quarterly Data

Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17
EBIT Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,239.90 1,156.70 1,003.30 1,075.90 1,174.10

Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then operating income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Jun. 2017 was 1239.9 (Sep. 2016 ) + 1156.7 (Dec. 2016 ) + 1003.3 (Mar. 2017 ) + 1075.9 (Jun. 2017 ) = $4,476 Mil.

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Starbucks Corp's annualized ROC % for the quarter that ended in Jun. 2017 is calculated as:

ROC %(Q: Jun. 2017 )
=NOPAT/Average Invested Capital
=Operating Income*(1-Tax Rate)/( (Invested Capital (Q: Mar. 2017 ) + Invested Capital (Q: Jun. 2017 ))/2)
=4176.8 * ( 1 - 34.31% )/( (7177.6 + 6772.8)/2)
=2743.73992/6975.2
=39.34 %

where

Invested Capital(Q: Mar. 2017 )
=Book Value of Debt + Book Value of Equity - Cash
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt + Total Equity - Cash
=3942.5 + 25 + 5605 - 2394.9
=7177.6

Invested Capital(Q: Jun. 2017 )
=Book Value of Debt + Book Value of Equity - Cash
=Long-Term Debt & Capital Lease Obligation + Current Portion of Long-Term Debt + Total Equity - Cash
=3935.5 + 0 + 5843.4 - 3006.1
=6772.8

Note: The Operating Income data used here is four times the quarterly (Jun. 2017) operating income data.

2. Joel Greenblatt's definition of Return on Capital:

Starbucks Corp's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2017 is calculated as:

ROC (Joel Greenblatt) %(Q: Jun. 2017 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2017  Q: Jun. 2017
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/2 )
=4303.6/( ( (4564.5 + max(-1450.6, 0)) + (4699.8 + max(-1523.3, 0)) )/2 )
=4303.6/( ( 4564.5 + 4699.8 )/2 )
=4303.6/4632.15
=92.91 %

where Working Capital is:

Working Capital(Q: Mar. 2017 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(791 + 1323.6 + 409.9) - (2417.5 + 0 + 1557.6)
=-1450.6

Working Capital(Q: Jun. 2017 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(791.1 + 1357.3 + 354.8) - (2472.8 + 0 + 1553.7)
=-1523.3

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Jun. 2017) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Starbucks Corp's Earnings Yield (Joel Greenblatt) %for the quarter that ended in Jun. 2017 is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Jun. 2017 )
=4475.8/85234.267
=5.25 %

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


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