Starbucks Corp. (NASDAQ:SBUX)

Current assets

The current assets exhibited a significant increase from 5,653,900 thousand US dollars in 2019 to a peak of 9,756,400 thousand US dollars in 2021, representing substantial growth in the company's short-term resources. However, following this peak, there was a notable decline in current assets over the subsequent years, dropping to 6,847,400 thousand US dollars by 2024. This decline suggests a reduction in liquid or short-term assets over the last three years.

Adjusted current assets

This metric closely mirrored the trend seen in current assets, starting at 5,660,600 thousand US dollars in 2019 and rising to a high of 9,782,000 thousand US dollars in 2021. Following this, adjusted current assets also decreased annually, reaching 6,868,600 thousand US dollars in 2024. The similarities between current and adjusted current assets indicate consistent adjustments without major discrepancies, reinforcing the observed declining trend in these assets toward the most recent period.

Total Assets

The total assets exhibit a general upward trend over the analyzed period. Starting from approximately $19.2 billion in 2019, the figure increased significantly to about $29.4 billion in 2020. Following this surge, total assets continued to grow but at a slower pace, peaking around $31.4 billion in 2021. In 2022, there was a noticeable decline to approximately $28.0 billion, followed by a recovery and incremental increase reaching approximately $31.3 billion in 2024. This pattern suggests periods of both expansion and contraction, with the overall trend indicating asset growth over the six-year span.

Adjusted Total Assets

The adjusted total assets display a somewhat variable trajectory but remain overall close to the values of total assets. Beginning at about $26.3 billion in 2019, there was a slight decline in 2020 to roughly $27.6 billion, after which the adjusted assets climbed to nearly $29.5 billion in 2021. A downward adjustment is observed in 2022, dropping to around $26.2 billion, similar to the drop in total assets. From 2022 onwards, there is an ascending pattern back to about $29.6 billion in 2024. The adjusted total assets appear to fluctuate more moderately compared to total assets but follow a similar overall trend of growth and recovery.

Comparative Insights

Both total assets and adjusted total assets demonstrate growth with some volatility, particularly around 2022. The decline during that year may reflect strategic asset revaluation or operational factors impacting asset levels. Post-2022 data point to a stabilization and renewed growth phase. The adjusted total assets consistently exceed the total assets, indicating that the adjustments contribute an additional valuation component. This could potentially affect assessments related to asset quality or financial strength.

Current Liabilities

The current liabilities exhibit a generally increasing trend from 2019 to 2023, rising from approximately 6.17 billion USD to around 9.35 billion USD. This indicates a growth in short-term obligations over this period. However, in 2024, there is a slight decrease to about 9.07 billion USD, suggesting a modest reduction in current liabilities relative to the previous year.

Adjusted Current Liabilities

The adjusted current liabilities show a similar upward trend from 4.90 billion USD in 2019 to 7.64 billion USD in 2023, implying an increase in current liabilities after adjustments for certain factors. In 2024, the adjusted figure decreases to approximately 7.29 billion USD, indicating some improvement or reduction in these liabilities compared to the prior year. This pattern mirrors the movement seen in total current liabilities but reflects a slightly lower magnitude.

Overall Analysis

The data suggests a consistent growth in both reported and adjusted current liabilities over five years, with a peak in 2023 followed by a slight decline in 2024. This could reflect changes in operational activities, financing strategies, or working capital management. The narrowing difference between current and adjusted liabilities might indicate improved accuracy or changes in accounting treatments over time. The recent decrease in liabilities may signal a strengthening liquidity position or efforts to optimize short-term obligations.

Total Liabilities

The total liabilities exhibit a general upward trend over the six-year period analyzed. Starting at approximately 25.5 billion US dollars as of September 29, 2019, the total liabilities increased significantly in the subsequent year, reaching about 37.2 billion US dollars by September 27, 2020. After this jump, the liabilities stabilize, fluctuating slightly around the 36.7 to 37.4 billion US dollars range through October 1, 2023, before rising again to approximately 38.8 billion US dollars by September 29, 2024. This pattern suggests an initial surge followed by a period of relative steadiness and a renewed increase in the most recent fiscal year.

Adjusted Total Liabilities

The adjusted total liabilities follow a somewhat different trajectory. Commencing at roughly 26.1 billion US dollars in 2019, there is a notable decrease in 2020 to around 28.9 billion US dollars, followed by a generally stable trend with slight year-over-year declines until 2021 where it drops to approximately 28.5 billion US dollars. From 2022 onward, the adjusted liabilities present a gradual increase, reaching about 31.0 billion US dollars by 2024. Compared to the total liabilities, adjusted numbers demonstrate less volatility and a more consistent upward trend in the latter years.

Comparative Insights

The divergence between total liabilities and adjusted total liabilities over time may indicate adjustments made to the liabilities reported, potentially due to reclassifications, corrections, or changes in accounting policies. The growth in adjusted total liabilities in recent years aligns with the final rise in total liabilities, indicating an overall expansion of the company's obligations. The stabilization period between 2020 and 2023 suggests effective control or management of liabilities during those years before the increase in 2024.

Shareholders' Deficit

The shareholders' deficit showed significant volatility over the analyzed periods. Beginning at -6,232,200 US$ thousands in 2019, it worsened notably to -7,805,100 US$ thousands in 2020. There was an improvement in 2021, with the deficit reducing substantially to -5,321,200 US$ thousands. However, the deficit increased again in 2022 to -8,706,600 US$ thousands, followed by a slight improvement over the next two periods, ending at -7,444,900 US$ thousands in 2024. Overall, the shareholders’ deficit remains at elevated negative levels, with notable fluctuations that may point to underlying financial and operational challenges.

Adjusted Total Deficit

The adjusted total deficit exhibits a pattern of alternating deficits and surpluses across the periods. In 2019, a small surplus of 209,700 US$ thousands was recorded, which shifted to a substantial deficit of -1,349,100 US$ thousands in 2020. Interestingly, 2021 saw a return to surplus at 1,043,900 US$ thousands, but this was followed by renewed deficits in 2022 (-2,431,000 US$ thousands), 2023 (-1,917,200 US$ thousands), and 2024 (-1,421,200 US$ thousands). The oscillation suggests variability in the adjustments or components affecting this metric, but the dominant trend since 2022 indicates sustained deficits, potentially reflecting ongoing financial pressures that are not fully captured in the shareholders' deficit figures alone.

The financial data reveals several noteworthy trends in the company's debt, capital structure, and financial position over the analyzed periods.

Total Reported Debt

The total reported debt exhibited a significant increase from 11.17 billion USD in 2019 to 15.91 billion USD in 2020. Although there was a slight reduction in 2021 to approximately 14.62 billion USD, debt levels stabilized around 14.87 billion to 15.57 billion USD through 2024. This indicates an overall upward trajectory with some moderation after the peak in 2020.

Shareholders’ Deficit

The shareholders’ deficit shows considerable fluctuations with a negative trend initially worsening from approximately -6.23 billion USD in 2019 to -7.81 billion USD in 2020. It then improved to -5.32 billion USD in 2021 but deteriorated sharply to -8.71 billion USD in 2022. Subsequent years saw a partial recovery, with deficits reducing to around -7.45 billion USD by 2024. This volatility suggests varying pressures on equity over the period.

Total Reported Capital

Total reported capital increased markedly from 4.93 billion USD in 2019 to 8.10 billion USD in 2020 and peaked at approximately 9.29 billion USD in 2021. However, capital declined sharply to about 6.16 billion USD in 2022 before moderately rebounding to 8.12 billion USD by 2024. Such fluctuations highlight changing equity infusion or retained earnings dynamics across these years.

Adjusted Total Debt

The adjusted total debt, which likely includes off-balance sheet liabilities or adjustments for a more comprehensive view, moved from roughly 19.97 billion USD in 2019 to 24.82 billion USD in 2020. Slight declines in 2021 and 2022 to around 23.61 billion and 23.63 billion USD respectively were followed by increases again to 25.87 billion USD in 2024. The trend indicates an expanded debt base relative to the reported figures, with notable growth especially in recent years.

Adjusted Total Deficit

This metric fluctuates around zero with negative values indicating a deficit and positive values indicating surplus. It was slightly positive at around 210 thousand USD in 2019, turned negative to -1.35 million USD in 2020, rebounded to a surplus of 1.04 million USD in 2021, and then again dipped into a deficit of -2.43 million USD in 2022. It partially recovered thereafter but remained in deficit territory by 2024. The volatility suggests unstable comprehensive equity after adjustments.

Adjusted Total Capital

The adjusted total capital measures overall adjusted equity and debt combined, showing a rise from approximately 20.18 billion USD in 2019 to a peak of about 24.65 billion USD in 2021. It decreased somewhat to 21.20 billion USD in 2022 before increasing steadily to 24.38 billion USD by 2024. This pattern indicates growth in the company's total adjusted financial resources despite fluctuations.

In summary, the company’s financial structure over the periods has demonstrated an overall increase in debt levels, both reported and adjusted, alongside fluctuating equity positions. Notably, significant volatility is observed in shareholders’ deficit and adjusted deficits, reflecting periods of both equity erosion and recovery. The combined adjusted capital reflects growing total resources, suggesting ongoing efforts to strengthen or expand the capital base despite intermediate fluctuations.

The financial data exhibits the annual net revenues and adjusted net revenues over a six-year period. Both metrics are represented in thousands of U.S. dollars.

Trend Analysis of Net Revenues

Net revenues initially declined from 26,508,600 thousand USD in 2019 to 23,518,000 thousand USD in 2020, indicating a notable contraction. Subsequently, there was a strong recovery and consistent growth each year, rising to 29,060,600 thousand USD in 2021, 32,250,300 thousand USD in 2022, 35,975,600 thousand USD in 2023, and marginally increasing to 36,176,200 thousand USD in 2024. This upward trend post-2020 suggests resilience and expansion following the initial downturn.

Trend Analysis of Adjusted Net Revenues

Adjusted net revenues closely mirror the pattern observed in net revenues. Starting at 26,103,400 thousand USD in 2019, adjusted net revenues dipped to 23,559,600 thousand USD in 2020. A consistent increase followed, reaching 29,064,700 thousand USD in 2021, 32,112,800 thousand USD in 2022, 35,856,000 thousand USD in 2023, and finally 36,119,000 thousand USD in 2024. The adjusted figures are slightly lower than the gross net revenues but maintain comparable growth rates.

Insights and Observations

The initial drop between 2019 and 2020 likely reflects external pressures affecting revenue generation during this period. The subsequent recovery and steady annual increases demonstrate the company's ability to regain and enhance its market position. The close alignment between net revenues and adjusted net revenues indicates limited adjustment divergence, suggesting stable accounting practices or relatively small adjustment items over time.

Net Earnings Attributable to Starbucks

The net earnings experienced a significant decline from 3,599,200 thousand USD in 2019 to 928,300 thousand USD in 2020. Following this drop, there was a strong recovery in 2021, with net earnings rising sharply to 4,199,300 thousand USD. However, this was followed by a decline in 2022 to 3,281,600 thousand USD. Earnings increased again in 2023 to 4,124,500 thousand USD but decreased in 2024 to 3,760,900 thousand USD. Overall, the trend shows considerable volatility with marked recovery periods after substantial decreases.

Adjusted Net Earnings Including Noncontrolling Interests

Adjusted net earnings, which include noncontrolling interests, also showed variability, initially declining from 1,566,300 thousand USD in 2019 to 1,092,100 thousand USD in 2020. A notable increase occurred in 2021, reaching 4,589,700 thousand USD, followed by a substantial decrease to 2,560,200 thousand USD in 2022. Subsequently, adjusted net earnings rose to 3,626,700 thousand USD in 2023, and increased further to 4,038,700 thousand USD in 2024. This suggests a recovery pattern with fluctuations, but the adjusted net earnings remained generally below the peak achieved in 2021 in subsequent years except for the final period analyzed.