ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Starbucks's annualizedNet Income for the quarter that ended in Dec. 2023 was $4,098 Mil.
Starbucks's average Total Assets over the quarter that ended in Dec. 2023 was $29,313 Mil. Therefore, Starbucks's annualized ROA % for the quarter that ended in Dec. 2023 was 13.98%.
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: 3.82 Med: 17.59 Max: 23.8
Current: 14.89
During the past 13 years, Starbucks's highest ROA % was 23.80%. The lowest was 3.82%. And the median was 17.59%.
SBUX's ROA % is ranked better than 92.29% of 350
companies
in the Restaurants industry
Industry Median: 2.56
vs SBUX: 14.89
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
Sep14
Sep15
Sep16
Sep17
Sep18
Sep19
Sep20
Sep21
Sep22
Sep23
ROA %
16.60
3.82
13.82
11.05
14.37
Starbucks Quarterly Data
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Sep22
Dec22
Mar23
Jun23
Sep23
Dec23
ROA %
12.17
12.78
15.93
16.77
13.98
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. 2023 is calculated as:
* 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 (Dec. 2023) 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 banks 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:
Note:
The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) 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 is one of the most widely recognized restaurant brands in the world, operating more than 38,000 stores across more than 80 countries as of the end of fiscal 2023. 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.
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