Starbucks Corp. (NASDAQ:SBUX)

An examination of the liabilities and stockholders’ equity reveals several noteworthy trends over the observed period. Overall, total liabilities and deficit demonstrate a generally stable pattern, with fluctuations occurring primarily between approximately 27.4 billion and 33.6 billion US dollars. A significant increase in several liability categories is observed in the later quarters, particularly from late 2023 through the forecast period into 2025.

Accounts Payable

Accounts payable exhibits a consistent upward trend throughout the majority of the period, increasing from approximately 1.09 billion to 1.91 billion US dollars by early 2025. This suggests a potential increase in the cost of goods sold or a lengthening of payment terms with suppliers. A slight decrease is noted in the most recent quarter, falling to 1.68 billion US dollars.

Accrued Liabilities

Accrued liabilities show considerable volatility. Initially decreasing from 3.05 billion to 1.26 billion US dollars, they then rise again, peaking at 2.32 billion US dollars in late 2021. Fluctuations continue, with a recent trend towards increases, reaching 2.35 billion US dollars in the latest reporting period. This variability may indicate changes in the timing of expense recognition or increased operational complexities.

Accrued Payroll and Benefits

Accrued payroll and benefits generally trended upward, with a notable surge in the later quarters, increasing from approximately 579 million to 1.09 billion US dollars. This increase could be attributed to wage increases, expanded benefits programs, or increased staffing levels.

Lease Liabilities

Both the current and non-current portions of the operating lease liability demonstrate a generally increasing trend throughout the period. The current portion rose from 1.27 billion to 1.56 billion US dollars, while the non-current portion increased from 7.71 billion to 9.07 billion US dollars. This suggests a growing commitment to leased assets.

Stored Value Card Liability and Deferred Revenue

This liability category exhibits fluctuations, with a significant increase to 2.14 billion US dollars in late 2022 before decreasing to 1.84 billion US dollars and then increasing again to 2.12 billion US dollars in late 2023. The most recent quarter shows a further increase to 2.25 billion US dollars. This suggests variability in customer prepaid balances and unearned revenue.

Short-Term and Long-Term Debt

Short-term debt shows significant volatility, peaking at 1.25 billion US dollars in early 2020 before declining substantially. Long-term debt, excluding the current portion, remains relatively stable in the range of 13 to 15 billion US dollars for much of the period, but increases to 15.55 billion US dollars in late 2023 and remains elevated. The current portion of long-term debt also shows a substantial increase in late 2021 and continues to fluctuate at a higher level.

Shareholders’ Equity

Shareholders’ deficit consistently remains negative throughout the period, ranging from approximately -6.76 billion to -8.62 billion US dollars. While the deficit fluctuates, it generally shows a trend towards becoming less negative in the later periods, improving to -8.09 billion US dollars by late 2023. Additional paid-in capital shows significant increases in certain periods, particularly in 2020 and 2024, potentially related to stock-based compensation or equity offerings. Accumulated other comprehensive income (loss) remains negative, but shows some improvement in later periods.

The increase in liabilities, particularly in the later quarters, coupled with the persistent shareholders’ deficit, warrants further investigation. The company appears to be increasingly reliant on debt financing and deferred revenue. The upward trends in accounts payable and accrued payroll suggest potential increases in operating costs. The fluctuations in deferred revenue and accrued liabilities require monitoring to understand the underlying drivers of these changes.