Stock Analysis on Net
Stock Analysis on Net

Starbucks Corp. (NASDAQ:SBUX)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Starbucks Corp., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Oct 1, 2023 — = 14.01% × —
Oct 2, 2022 — = 11.73% × —
Oct 3, 2021 — = 13.38% × —
Sep 27, 2020 — = 3.16% × —
Sep 29, 2019 — = 18.73% × —
Sep 30, 2018 386.34% = 18.70% × 20.66

Based on: 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), 10-K (reporting date: 2018-09-30).

Three-Component Disaggregation of ROE

Starbucks Corp., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Oct 1, 2023 — = 11.46% × 1.22 × —
Oct 2, 2022 — = 10.18% × 1.15 × —
Oct 3, 2021 — = 14.45% × 0.93 × —
Sep 27, 2020 — = 3.95% × 0.80 × —
Sep 29, 2019 — = 13.58% × 1.38 × —
Sep 30, 2018 386.34% = 18.28% × 1.02 × 20.66

Based on: 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), 10-K (reporting date: 2018-09-30).

Five-Component Disaggregation of ROE

Starbucks Corp., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Oct 1, 2023 — = 0.76 × 0.91 × 16.54% × 1.22 × —
Oct 2, 2022 — = 0.78 × 0.90 × 14.61% × 1.15 × —
Oct 3, 2021 — = 0.78 × 0.92 × 20.05% × 0.93 × —
Sep 27, 2020 — = 0.79 × 0.73 × 6.82% × 0.80 × —
Sep 29, 2019 — = 0.81 × 0.93 × 18.11% × 1.38 × —
Sep 30, 2018 386.34% = 0.78 × 0.97 × 24.07% × 1.02 × 20.66

Based on: 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), 10-K (reporting date: 2018-09-30).

Two-Component Disaggregation of ROA

Starbucks Corp., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Oct 1, 2023 14.01% = 11.46% × 1.22
Oct 2, 2022 11.73% = 10.18% × 1.15
Oct 3, 2021 13.38% = 14.45% × 0.93
Sep 27, 2020 3.16% = 3.95% × 0.80
Sep 29, 2019 18.73% = 13.58% × 1.38
Sep 30, 2018 18.70% = 18.28% × 1.02

Based on: 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), 10-K (reporting date: 2018-09-30).

The primary reason for the increase in return on assets ratio (ROA) over 2023 year is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Starbucks Corp., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Oct 1, 2023 14.01% = 0.76 × 0.91 × 16.54% × 1.22
Oct 2, 2022 11.73% = 0.78 × 0.90 × 14.61% × 1.15
Oct 3, 2021 13.38% = 0.78 × 0.92 × 20.05% × 0.93
Sep 27, 2020 3.16% = 0.79 × 0.73 × 6.82% × 0.80
Sep 29, 2019 18.73% = 0.81 × 0.93 × 18.11% × 1.38
Sep 30, 2018 18.70% = 0.78 × 0.97 × 24.07% × 1.02

Based on: 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), 10-K (reporting date: 2018-09-30).

The primary reason for the increase in return on assets ratio (ROA) over 2023 year is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Starbucks Corp., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Oct 1, 2023 11.46% = 0.76 × 0.91 × 16.54%
Oct 2, 2022 10.18% = 0.78 × 0.90 × 14.61%
Oct 3, 2021 14.45% = 0.78 × 0.92 × 20.05%
Sep 27, 2020 3.95% = 0.79 × 0.73 × 6.82%
Sep 29, 2019 13.58% = 0.81 × 0.93 × 18.11%
Sep 30, 2018 18.28% = 0.78 × 0.97 × 24.07%

Based on: 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), 10-K (reporting date: 2018-09-30).

The primary reason for the increase in net profit margin ratio over 2023 year is the increase in operating profitability measured by EBIT margin ratio.