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Starbucks ROA %

: 12.77% (As of Jun. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Starbucks's annualized Net Income for the quarter that ended in Jun. 2022 was $3,652 Mil. Starbucks's average Total Assets over the quarter that ended in Jun. 2022 was $28,589 Mil. Therefore, Starbucks's annualized ROA % for the quarter that ended in Jun. 2022 was 12.77%.

The historical rank and industry rank for Starbucks's ROA % or its related term are showing as below:

SBUX' s ROA % Range Over the Past 10 Years
Min: 0.08   Med: 18.17   Max: 23.8
Current: 14.19

During the past 13 years, Starbucks's highest ROA % was 23.80%. The lowest was 0.08%. And the median was 18.17%.

SBUX's ROA % is ranked better than
95.35% of 344 companies
in the Restaurants industry
Industry Median: 1.57 vs SBUX: 14.19

Starbucks ROA % Historical Data

The historical data trend for Starbucks's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Starbucks Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 20.12 23.46 16.60 3.82 13.82

Starbucks Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
ROA % 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 15.95 23.19 10.84 9.33 12.77

Competitive Comparison

For the Restaurants subindustry, Starbucks's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

   

Starbucks ROA % Distribution

For the Restaurants industry and Consumer Cyclical sector, Starbucks's ROA % distribution charts can be found below:

* The bar in red indicates where Starbucks's ROA % falls into.



Starbucks ROA % Calculation

Starbucks's annualized ROA % for the fiscal year that ended in Sep. 2021 is calculated as:

ROA %=Net Income (A: Sep. 2021 )/( (Total Assets (A: Sep. 2020 )+Total Assets (A: Sep. 2021 ))/ count )
=4199.3/( (29374.5+31392.6)/ 2 )
=4199.3/30383.55
=13.82 %

Starbucks's annualized ROA % for the quarter that ended in Jun. 2022 is calculated as:

ROA %=Net Income (Q: Jun. 2022 )/( (Total Assets (Q: Mar. 2022 )+Total Assets (Q: Jun. 2022 ))/ count )
=3651.6/( (29021.5+28156.2)/ 2 )
=3651.6/28588.85
=12.77 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jun. 2022) net income data. ROA % is displayed in the 30-year financial page.


Starbucks  (NAS:SBUX) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jun. 2022 )
=Net Income/Total Assets
=3651.6/28588.85
=(Net Income / Revenue)*(Revenue / Total Assets)
=(3651.6 / 32600.4)*(32600.4 / 28588.85)
=Net Margin %*Asset Turnover
=11.2 %*1.1403
=12.77 %

Note: The Net Income data used here is four times the quarterly (Jun. 2022) net income data. The Revenue data used here is four times the quarterly (Jun. 2022) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Starbucks ROA % Related Terms

Thank you for viewing the detailed overview of Starbucks's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Starbucks Business Description

Starbucks logo
Address
2401 Utah Avenue South, Seattle, WA, USA, 98134
Starbucks is one of the most widely recognized restaurant brands in the world, operating more than 34,300 stores across more than 80 countries as of the end of the first quarter of fiscal 2022. The firm operates in three segments: North America, international markets, and channel development (grocery and ready-to-drink beverage). The coffee chain generates revenue from company-operated stores, royalties, sales of equipment and products to license partners, ready-to-drink beverages, packaged coffee sales, and single-serve products.
Executives
Jenkins Zabrina officer: Interim evp, general counsel C/O RETAIL OPPORTUNITY INVESTMENT CORP. 11250 EL CAMINO REAL. SUITE 200 SAN DIEGO CA 92130
Woods Gina officer: evp, Public Affairs 2401 UTAH AVENUE SOUTH #800 SEATTLE WA 98134
Conway Michael Aaron officer: group president International 18 LOVETON CIRCLE SPARKS MD 21152
Ruggeri Rachel officer: evp, cfo 2401 UTAH AVENUE SOUTH #800 SEATTLE WA 98134
Lis Angela officer: evp, chief partner officer 2401 UTAH AVENUE SOUTH EX6 SEATTLE WA 98134
Kelly John Ac officer: evp, Public Affairs 2401 UTAH AVENUE SOUTH SEATTLE WA 98134
Allison Richard E Jr director 30 FRANK LLOYD WRIGHT DR ANN ARBOR MI 48105
Mahe Isabel director ONE APPLE PARK WAY MS169:2CL CUPERTINO CA 95014
Campion Andrew director ONE BOWERMAN DRIVE BEAVERTON OR 97005
Walker Jill officer: svp chief accounting officer 2401 UTAH AVENUE SOUTH SEATTLE WA 98134
Grismer Patrick J officer: executive vice president 71 SOUTH WACKER DRIVE, 12TH FLOOR CHICAGO IL 60606
Gonzalez Rachel A officer: evp, general counsel & sec. 3150 SABRE DRIVE SOUTHLAKE TX 76092
Mutty Paul officer: svp, deputy general counsel 2401 UTAH AVENUE SOUTH #800 SEATTLE WA 98134
Brewer Rosalind G director C/O MOLSON COORS BREWING COMPANY 1225 17TH STREET, SUITE 3200 DENVER CO 80202
Knudstorp Jorgen Vig director 2401 UTAH AVENUE SOUTH SEATTLE WA 98134

Starbucks Headlines

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