Stock Analysis on Net
Stock Analysis on Net

Starbucks Corp. (NASDAQ:SBUX)

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Starbucks Corp., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Sep 29, 2024 Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019
U.S. federal 681,200 678,200 477,600 681,800 49,900 1,414,300
U.S. state and local 210,900 235,900 164,000 190,000 36,900 447,800
Foreign 328,800 422,400 283,800 409,800 181,400 458,300
Current taxes 1,220,900 1,336,500 925,400 1,281,600 268,200 2,320,400
U.S. federal 10,700 117,000 92,600 10,400 (8,400) (1,074,500)
U.S. state and local (700) (800) 10,500 (6,400) (4,800) (322,400)
Foreign (23,600) (175,500) (80,000) (129,000) (15,300) (51,900)
Deferred taxes (13,600) (59,300) 23,100 (125,000) (28,500) (1,448,800)
Income tax expense 1,207,300 1,277,200 948,500 1,156,600 239,700 871,600

Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).

Item Description The company
Current taxes Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Starbucks Corp. current taxes increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.
Deferred taxes Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Starbucks Corp. deferred taxes decreased from 2022 to 2023 but then increased from 2023 to 2024 not reaching 2022 level.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Starbucks Corp. income tax expense increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Effective Income Tax Rate (EITR)

Starbucks Corp., effective income tax rate (EITR) reconciliation

Microsoft Excel
Sep 29, 2024 Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019
Statutory U.S. federal income tax rate 21.00% 21.00% 21.00% 21.00% 21.00% 21.00%
State income taxes, net of federal tax benefit 3.30% 3.40% 3.30% 2.70% 2.20% 2.10%
Foreign rate differential 0.30% 0.40% 0.30% 0.50% -3.20% -0.10%
Change in tax rates 0.00% 0.00% 0.00% -1.30% -2.20% 0.00%
Residual tax on foreign earnings 0.00% 0.00% 0.00% 0.00% 0.00% 1.70%
Tax impacts related to sale of certain operations 0.00% 0.00% 0.00% 0.00% 0.00% -1.30%
Other, net -0.30% -1.20% -2.20% -1.30% 2.80% -3.90%
Effective income tax rate 24.30% 23.60% 22.40% 21.60% 20.60% 19.50%

Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Starbucks Corp. effective income tax rate increased from 2022 to 2023 and from 2023 to 2024.

Components of Deferred Tax Assets and Liabilities

Starbucks Corp., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Sep 29, 2024 Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019
Operating lease liabilities 2,595,100 2,395,300 2,289,100 2,395,200 2,313,000 —
Stored value card liability and deferred revenue 1,612,500 1,638,100 1,662,600 1,679,400 1,678,600 1,649,000
Intangible assets and goodwill 372,600 313,400 313,600 317,700 248,600 230,000
Accrued occupancy costs — — — — — 121,600
Other 692,200 642,300 605,700 641,000 554,400 413,000
Deferred tax assets 5,272,400 4,989,100 4,871,000 5,033,300 4,794,600 2,413,600
Valuation allowance (194,500) (148,600) (228,700) (275,300) (239,400) (75,100)
Deferred tax asset, net of valuation allowance 5,077,900 4,840,500 4,642,300 4,758,000 4,555,200 2,338,500
Operating lease, right-of-use assets (2,483,700) (2,291,800) (2,194,300) (2,296,500) (2,191,800) —
Property, plant and equipment (580,800) (525,400) (482,200) (451,200) (463,300) (400,900)
Other (267,800) (268,100) (284,700) (284,000) (268,300) (358,200)
Deferred tax liabilities (3,332,300) (3,085,300) (2,961,200) (3,031,700) (2,923,400) (759,100)
Net deferred tax asset (liability) 1,745,600 1,755,200 1,681,100 1,726,300 1,631,800 1,579,400

Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).

Item Description The company
Deferred tax assets Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Starbucks Corp. deferred tax assets increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax asset, net of valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Starbucks Corp. deferred tax asset, net of valuation allowance increased from 2022 to 2023 and from 2023 to 2024.
Net deferred tax asset (liability) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Starbucks Corp. net deferred tax asset (liability) increased from 2022 to 2023 but then slightly decreased from 2023 to 2024.

Deferred Tax Assets and Liabilities, Classification

Starbucks Corp., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Sep 29, 2024 Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019
Deferred income tax assets 1,766,700 1,769,800 1,799,700 1,874,800 1,789,900 1,765,800
Deferred income tax liabilities (included in Other long-term liabilities) 21,100 14,600 118,600 148,500 158,100 186,400

Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).

Item Description The company
Deferred income tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Starbucks Corp. deferred income tax assets decreased from 2022 to 2023 and from 2023 to 2024.
Deferred income tax liabilities (included in Other long-term liabilities) Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. Starbucks Corp. deferred income tax liabilities (included in Other long-term liabilities) decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.

Adjustments to Financial Statements: Removal of Deferred Taxes

Starbucks Corp., adjustments to financial statements

US$ in thousands

Microsoft Excel
Sep 29, 2024 Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019
Adjustment to Total Assets
Total assets (as reported) 31,339,300 29,445,500 27,978,400 31,392,600 29,374,500 19,219,600
Less: Noncurrent deferred tax assets, net 1,766,700 1,769,800 1,799,700 1,874,800 1,789,900 1,765,800
Total assets (adjusted) 29,572,600 27,675,700 26,178,700 29,517,800 27,584,600 17,453,800
Adjustment to Total Liabilities
Total liabilities (as reported) 38,780,900 37,433,300 36,677,100 36,707,100 37,173,900 25,450,600
Less: Noncurrent deferred tax liabilities, net 21,100 14,600 118,600 148,500 158,100 186,400
Total liabilities (adjusted) 38,759,800 37,418,700 36,558,500 36,558,600 37,015,800 25,264,200
Adjustment to Shareholders’ Deficit
Shareholders’ deficit (as reported) (7,448,900) (7,994,800) (8,706,600) (5,321,200) (7,805,100) (6,232,200)
Less: Net deferred tax assets (liabilities) 1,745,600 1,755,200 1,681,100 1,726,300 1,631,800 1,579,400
Shareholders’ deficit (adjusted) (9,194,500) (9,750,000) (10,387,700) (7,047,500) (9,436,900) (7,811,600)
Adjustment to Net Earnings Attributable To Starbucks
Net earnings attributable to Starbucks (as reported) 3,760,900 4,124,500 3,281,600 4,199,300 928,300 3,599,200
Add: Deferred income tax expense (benefit) (13,600) (59,300) 23,100 (125,000) (28,500) (1,448,800)
Net earnings attributable to Starbucks (adjusted) 3,747,300 4,065,200 3,304,700 4,074,300 899,800 2,150,400

Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).

Starbucks Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Starbucks Corp., adjusted financial ratios

Microsoft Excel
Sep 29, 2024 Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019
Net Profit Margin
Reported net profit margin 10.40% 11.46% 10.18% 14.45% 3.95% 13.58%
Adjusted net profit margin 10.36% 11.30% 10.25% 14.02% 3.83% 8.11%
Total Asset Turnover
Reported total asset turnover 1.15 1.22 1.15 0.93 0.80 1.38
Adjusted total asset turnover 1.22 1.30 1.23 0.98 0.85 1.52
Financial Leverage
Reported financial leverage — — — — — —
Adjusted financial leverage — — — — — —
Return on Equity (ROE)
Reported ROE — — — — — —
Adjusted ROE — — — — — —
Return on Assets (ROA)
Reported ROA 12.00% 14.01% 11.73% 13.38% 3.16% 18.73%
Adjusted ROA 12.67% 14.69% 12.62% 13.80% 3.26% 12.32%

Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Starbucks Corp. adjusted net profit margin ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Starbucks Corp. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Starbucks Corp. adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.

Starbucks Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Sep 29, 2024 Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net earnings attributable to Starbucks 3,760,900 4,124,500 3,281,600 4,199,300 928,300 3,599,200
Net revenues 36,176,200 35,975,600 32,250,300 29,060,600 23,518,000 26,508,600
Profitability Ratio
Net profit margin1 10.40% 11.46% 10.18% 14.45% 3.95% 13.58%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Starbucks 3,747,300 4,065,200 3,304,700 4,074,300 899,800 2,150,400
Net revenues 36,176,200 35,975,600 32,250,300 29,060,600 23,518,000 26,508,600
Profitability Ratio
Adjusted net profit margin2 10.36% 11.30% 10.25% 14.02% 3.83% 8.11%

Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).

2024 Calculations

1 Net profit margin = 100 × Net earnings attributable to Starbucks ÷ Net revenues
= 100 × 3,760,900 ÷ 36,176,200 = 10.40%

2 Adjusted net profit margin = 100 × Adjusted net earnings attributable to Starbucks ÷ Net revenues
= 100 × 3,747,300 ÷ 36,176,200 = 10.36%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Starbucks Corp. adjusted net profit margin ratio improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.

Adjusted Total Asset Turnover

Microsoft Excel
Sep 29, 2024 Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net revenues 36,176,200 35,975,600 32,250,300 29,060,600 23,518,000 26,508,600
Total assets 31,339,300 29,445,500 27,978,400 31,392,600 29,374,500 19,219,600
Activity Ratio
Total asset turnover1 1.15 1.22 1.15 0.93 0.80 1.38
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Net revenues 36,176,200 35,975,600 32,250,300 29,060,600 23,518,000 26,508,600
Adjusted total assets 29,572,600 27,675,700 26,178,700 29,517,800 27,584,600 17,453,800
Activity Ratio
Adjusted total asset turnover2 1.22 1.30 1.23 0.98 0.85 1.52

Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).

2024 Calculations

1 Total asset turnover = Net revenues ÷ Total assets
= 36,176,200 ÷ 31,339,300 = 1.15

2 Adjusted total asset turnover = Net revenues ÷ Adjusted total assets
= 36,176,200 ÷ 29,572,600 = 1.22

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Starbucks Corp. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Sep 29, 2024 Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets 31,339,300 29,445,500 27,978,400 31,392,600 29,374,500 19,219,600
Shareholders’ deficit (7,448,900) (7,994,800) (8,706,600) (5,321,200) (7,805,100) (6,232,200)
Solvency Ratio
Financial leverage1 — — — — — —
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 29,572,600 27,675,700 26,178,700 29,517,800 27,584,600 17,453,800
Adjusted shareholders’ deficit (9,194,500) (9,750,000) (10,387,700) (7,047,500) (9,436,900) (7,811,600)
Solvency Ratio
Adjusted financial leverage2 — — — — — —

Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).

2024 Calculations

1 Financial leverage = Total assets ÷ Shareholders’ deficit
= 31,339,300 ÷ -7,448,900 = —

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ deficit
= 29,572,600 ÷ -9,194,500 = —

Adjusted Return on Equity (ROE)

Microsoft Excel
Sep 29, 2024 Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net earnings attributable to Starbucks 3,760,900 4,124,500 3,281,600 4,199,300 928,300 3,599,200
Shareholders’ deficit (7,448,900) (7,994,800) (8,706,600) (5,321,200) (7,805,100) (6,232,200)
Profitability Ratio
ROE1 — — — — — —
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Starbucks 3,747,300 4,065,200 3,304,700 4,074,300 899,800 2,150,400
Adjusted shareholders’ deficit (9,194,500) (9,750,000) (10,387,700) (7,047,500) (9,436,900) (7,811,600)
Profitability Ratio
Adjusted ROE2 — — — — — —

Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).

2024 Calculations

1 ROE = 100 × Net earnings attributable to Starbucks ÷ Shareholders’ deficit
= 100 × 3,760,900 ÷ -7,448,900 = —

2 Adjusted ROE = 100 × Adjusted net earnings attributable to Starbucks ÷ Adjusted shareholders’ deficit
= 100 × 3,747,300 ÷ -9,194,500 = —

Adjusted Return on Assets (ROA)

Microsoft Excel
Sep 29, 2024 Oct 1, 2023 Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net earnings attributable to Starbucks 3,760,900 4,124,500 3,281,600 4,199,300 928,300 3,599,200
Total assets 31,339,300 29,445,500 27,978,400 31,392,600 29,374,500 19,219,600
Profitability Ratio
ROA1 12.00% 14.01% 11.73% 13.38% 3.16% 18.73%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net earnings attributable to Starbucks 3,747,300 4,065,200 3,304,700 4,074,300 899,800 2,150,400
Adjusted total assets 29,572,600 27,675,700 26,178,700 29,517,800 27,584,600 17,453,800
Profitability Ratio
Adjusted ROA2 12.67% 14.69% 12.62% 13.80% 3.26% 12.32%

Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).

2024 Calculations

1 ROA = 100 × Net earnings attributable to Starbucks ÷ Total assets
= 100 × 3,760,900 ÷ 31,339,300 = 12.00%

2 Adjusted ROA = 100 × Adjusted net earnings attributable to Starbucks ÷ Adjusted total assets
= 100 × 3,747,300 ÷ 29,572,600 = 12.67%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Starbucks Corp. adjusted ROA improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.