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Starbucks Corp  (NAS:SBUX) Goodwill: $1,549 Mil (As of Jun. 2017)

A Goodwill is an intangible asset that arises as a result of the acquisition of one company by another for a premium value. The value of a company's brand name, solid customer base, good customer relations, good employee relations and any patents or proprietary technology represent goodwill. Starbucks Corp's goodwill for the quarter that ended in Jun. 2017 was $1,549 Mil.


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

Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 Sep16
Goodwill Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 399.10 862.90 856.20 1,575.40 1,719.60

Starbucks Corp Quarterly Data

Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17
Goodwill 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 1,705.10 1,719.60 1,599.00 1,635.80 1,549.10

Calculation

A Goodwill is an intangible asset that arises as a result of the acquisition of one company by another for a premium value. The value of a company's brand name, solid customer base, good customer relations, good employee relations and any patents or proprietary technology represent goodwill. Goodwill is considered an intangible asset because it is not a physical asset like buildings or equipment. The goodwill account can be found in the assets portion of a company's balance sheet.


Explanation

Goodwill to Asset ratio measures how much goodwill a company is recording compared to the total level of its assets.

It is calculated by dividing goodwill by total assets.

Starbucks Corp's Goodwill-to-Asset Ratio for the fiscal year that ended in Sep. 2016 is calculated as

Goodwill-to-Asset (A: Sep. 2016 )=Goodwill/Total Assets
=1719.6/14329.5
=0.12

Starbucks Corp's Goodwill-to-Asset Ratio for the quarter that ended in Jun. 2017 is calculated as

Goodwill-to-Asset (Q: Jun. 2017 )=Goodwill/Total Assets
=1549.1/14522.7
=0.11

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

If the goodwill-to-asset ratio increases, it can mean that the company is recording a proportionately higher amount of goodwill, assuming total assets are remaining constant. It is generally good to see a company increasing its assets regularly; however, if these increases are coming from intangible assets, such as goodwill, the increases may not be as good.

Increases in the goodwill-to-asset ratio might suggest that a company has been aggressively acquiring other firms or has seen its tangible assets decrease in value. When a large portion of total assets are attributable to intangible assets (such as goodwill), the company may be at risk of having that portion of its asset base wiped out quickly if it must record any goodwill impairments. Decreases in the goodwill-to-assets ratio suggest that the company has either written down some goodwill or increased its tangible assets.

Asset needs vary from industry to industry. This is why comparing goodwill-to-assets ratios is generally most meaningful among companies within the same industry. By comparing a company's goodwill to assets ratio to those of other companies within the same industry, investors can get a feel for how a company is managing its goodwill.


Related Terms


Headlines

From the Internet

Starbucks Still Bit Concerned Price Worth Risk

- Seekingalpha 2017-09-22 02:58:59

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