Starbucks Corp. (NASDAQ:SBUX)

The analysis of the financial ratios over the periods reveals a number of notable trends in operational efficiency, liquidity, leverage, and profitability.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios demonstrate a consistent upward trend from 2020 through 2023, peaking in 2023 with values of 1.22 (reported) and 1.29 (adjusted). This suggests improved efficiency in utilizing assets to generate sales. However, there is a slight decline observed in 2024 followed by stabilization in 2025.

Current Ratio

The reported current ratio initially increases from 1.06 in 2020 to 1.20 in 2021, indicating better short-term liquidity. After this point, there is a marked decline from 0.77 in 2022 to 0.72 in 2025, suggesting decreasing liquidity. Adjusted current ratio data mirrors this trend but shows generally higher values, though it also declines from 1.49 in 2021 to 0.88 in 2025. This indicates a weakening in the company’s ability to cover short-term liabilities with current assets over time.

Debt to Capital

The reported debt to capital ratio shows fluctuations without a clear directional trend, beginning at 1.96 in 2020, dropping to 1.57 in 2021, rising again to 2.41 in 2022, and then slightly decreasing through 2025. Adjusted ratios remain relatively stable around 1.06 to 1.11, suggesting a moderate and steady use of debt in the company's capital structure.

Net Profit Margin

The reported net profit margin increases substantially from 3.95% in 2020 to a high of 14.45% in 2021 but then generally declines, most notably dropping to 4.99% in 2025. Adjusted net profit margins follow a similar pattern with a peak in 2021 and a decrease in later years. This volatility reflects fluctuations in profitability, possibly influenced by operational or market conditions.

Return on Assets (ROA)

Reported ROA improves significantly from 3.16% in 2020 to a peak of 14.01% in 2023, indicating enhanced asset efficiency. After 2023, ROA declines to 5.8% in 2025, reflecting lower profitability relative to assets. The adjusted ROA follows a comparable pattern but with slightly different values, highlighting consistent trends in asset returns.

Other Metrics

Adjusted debt to equity and financial leverage ratios are reported only for early years with very high values (22.61 and 28.3 respectively), indicating substantial leverage at those points. No recent values are provided to assess trends post those dates. Additionally, reported return on equity figures are not available for most periods, limiting insight into equity returns.

Overall, the data suggests that while asset utilization and profitability indicators improved markedly up to 2023, there has been a subsequent decline in liquidity and profitability metrics. The company maintains a moderate debt presence, though leverage was notably high in reported early adjusted figures. The weakening current ratio trend points to increasing short-term liquidity risks. Profit margins and ROA’s decline after their peaks could indicate operational challenges or market pressures affecting earnings efficiency in recent years.

The financial data reveals several notable trends in key performance indicators over the examined periods. Net revenues consistently increased from approximately 23.5 billion USD in late 2020 to about 37.2 billion USD by late 2025, indicating steady growth in the company's core income stream. This upward trajectory in net revenues demonstrates sustained business expansion and potentially effective sales strategies or market penetration.

Total assets, however, show a more variable pattern. After an initial rise from around 29.4 billion USD to 31.4 billion USD in 2021, total assets declined in 2022 to approximately 27.9 billion USD, then gradually increased back to about 32.0 billion USD by 2025. This fluctuation suggests possible asset reprioritization, divestitures, or changes in investment strategy during the middle period, followed by stabilization and moderate growth in asset base.

Reported total asset turnover ratios exhibit a positive trend overall. Starting from 0.8 in 2020, the ratio climbs to above 1.0 by 2022, peaking at around 1.22 in 2023 before slightly decreasing to 1.15-1.16 range thereafter. This improvement implies enhanced efficiency in using total assets to generate revenue, with the company achieving more revenue per unit of asset over time. The slight dip toward the end warrants attention but remains at levels higher than at the beginning of the period.

Adjusted figures, which consider certain recalibrations of net revenues and assets, reinforce these observations. Adjusted net revenues mirror the ascending trend seen in reported revenues, increasing from roughly 23.6 billion USD to nearly 37.1 billion USD. Adjusted total assets also follow a similar pattern to reported assets with a decrease around 2022 and subsequent rise, overall ranging from about 27.6 billion USD to 30.2 billion USD.

Adjusted total asset turnover ratios offer an even clearer depiction of increasing asset efficiency, advancing from 0.85 to 1.23 over the time span. The ratio peaks at approximately 1.29 in 2023, indicating strong operational performance in that year, before a slight decline but maintaining higher levels than early years.

In summary, the company demonstrates robust revenue growth accompanied by a more fluctuating but recovering asset base. Both reported and adjusted total asset turnover ratios reveal improved efficiency in asset utilization, suggesting better management of resources relative to revenue generation. Continued monitoring of asset trends and turnover ratios will be important to sustain this positive momentum and address the recent mild declines in turnover efficiency.

The analysis of the financial data over the specified periods reveals significant fluctuations and trends in the liquidity position of the company.

Current Assets and Current Liabilities

Current assets demonstrated volatility, peaking in the period ending October 3, 2021, at approximately 9.76 billion USD before declining sharply to around 7.02 billion USD in the following year. A slight recovery is observed thereafter, though levels remain below the earlier peak. Current liabilities show a general upward trend, increasing steadily from about 7.35 billion USD in September 2020 to over 10.21 billion USD by September 2025. This steady increase in liabilities alongside fluctuating assets signals rising short-term obligations.

Reported Current Ratio

The reported current ratio, which measures the company's ability to cover its short-term liabilities with current assets, shows a decreasing trend after an initial rise. From a value above 1 in 2020 and 2021, it drops significantly below 1 from 2022 onward, reaching 0.72 in 2025. This decline indicates increasing liquidity pressure and potential challenges in meeting short-term liabilities without additional financing or asset liquidation.

Adjusted Current Assets and Liabilities

Adjusted current assets follow a trend similar to reported current assets but consistently register slightly higher values, reflecting some adjustments likely improving asset valuation or recognition. Adjusted liabilities also trend upward but are lower than reported liabilities, suggesting some liabilities are reconsidered or deferred in the adjustment process.

Adjusted Current Ratio

The adjusted current ratio starts from a stronger position above 1.3 in 2020 and 2021, indicating better short-term liquidity under adjusted figures. However, a downward trend is evident here as well, dropping below 1 by 2022 and continuing a moderate decline through 2025 to 0.88. Despite adjustments, the ratio remains under 1 in recent years, still signaling a potential liquidity concern.

Overall, the data suggest that while the company experienced relatively healthy liquidity in the earlier years, its short-term financial position has weakened over time. The consistent increase in liabilities outpacing assets, combined with declining current ratios under both reported and adjusted figures, highlights a heightened risk of liquidity constraints. Continuous monitoring and possible strategic adjustments to manage short-term obligations may be necessary to maintain financial stability.

The financial data over the presented periods indicate fluctuations in the company's debt levels and equity position, revealing important trends in its financial structure and leverage.

Total Debt

The total debt has shown a general upward trend. Starting from approximately 15.91 billion USD in September 2020, the debt decreased slightly in October 2021 but then increased consistently through October 2023 to nearly 16.07 billion USD by September 2025. This steady increase suggests a growing reliance on borrowed funds over time.

Shareholders’ Deficit

The shareholders’ deficit has fluctuated significantly, with a steep decline and recovery pattern. Initially recorded at a deficit of about -7.81 billion USD in September 2020, it improved to around -5.32 billion USD by October 2021, indicating a reduction in deficit. However, this was followed by a substantial increase in deficit to nearly -8.71 billion USD in October 2022. Thereafter, the deficit amounts diminished somewhat but remained substantial, ranging between -7.45 billion USD and -8.10 billion USD up to September 2025. This suggests instability in equity, impacting the company’s net worth negatively over the periods.

Adjusted Total Debt

This measure shows a similar upward trajectory as total debt but at higher absolute values. From about 24.82 billion USD in September 2020, the adjusted debt marginally decreased in October 2021, then rose steadily, reaching approximately 26.61 billion USD by September 2025. This reflects an increasing level of debt when considering additional factors included in the adjustment.

Adjusted Total Deficit

The adjusted total deficit reveals a volatile pattern ranging from negative to positive values and back. It started negative at approximately -1.35 billion USD in September 2020, turned positive to about 1.04 billion USD by October 2021, then fluctuated between negative values through to September 2025, ending at roughly -2.23 billion USD. These swings indicate varying equity adjustments and possibly the effects of non-operational items or revaluations affecting shareholder equity.

Debt to Equity Measures

Debt to equity ratios were only partially provided, with an adjusted debt to equity ratio noted at 22.61 in October 2021. This extremely high ratio indicates substantial leverage and comparatively low equity base during that period. The absence of reported values for other periods limits detailed trend analysis but supports the inference of high financial leverage.

In summary, the company exhibits increasing debt levels alongside persistent shareholders’ deficits, indicating a leveraged financial stance with continued equity challenges. The volatility in adjusted deficits and the significant debt to equity ratio underscore potential financial risks and the need for ongoing monitoring of the company's capital structure and financial sustainability.

The financial data reveals several noteworthy trends and patterns over the examined periods.

Total Debt and Total Capital

Total debt fluctuated over the years, initially decreasing from approximately 15.91 billion to 14.62 billion, before rising again to around 16.07 billion in the latest period. Total capital showed a more volatile trend, increasing from 8.10 billion to about 9.29 billion before experiencing a significant decline to 6.16 billion and then partially recovering to near 7.98 billion by the end of the period.

Reported Debt to Capital Ratio

This ratio exhibited considerable variability, starting high at 1.96 and then dropping to 1.57. It sharply increased to 2.41 in one period before decreasing again to 1.92 and slightly rising to 2.01 by the last period. These movements suggest fluctuations in the balance between debt and capital, with leverage increasing notably before some degree of stabilization.

Adjusted Total Debt and Adjusted Total Capital

The adjusted measures show a smoother trend. Adjusted total debt decreased slightly from 24.82 billion to 23.61 billion and then gradually increased to 26.61 billion, indicating a moderate rise in overall debt obligations when adjusting for certain factors. Adjusted total capital, meanwhile, increased from 23.47 billion to 24.65 billion, dipped to 21.20 billion, and then rose again to around 24.38 billion, portraying some volatility but overall resilience in adjusted capital levels.

Adjusted Debt to Capital Ratio

This ratio remained relatively stable, fluctuating narrowly between 0.96 and 1.11. Starting at 1.06, it showed a slight reduction then a peak and a gentle decline again, indicating a generally consistent leverage position when considering adjusted values. The modest variations suggest more stability in the company’s financial structure after adjustments compared to the reported figures.

In summary, the data underscores fluctuating leverage dynamics with reported ratios showing more pronounced swings, while adjusted metrics point to more consistent trends. Debt levels experienced moderate increases towards the later years, and capital levels were generally volatile but with some recovery after declines. The adjusted debt to capital ratio suggests controlled leverage management within a relatively narrow range.

The analysis of the financial data over the reported periods reveals several trends in the company's asset base, shareholders’ equity position, and financial leverage metrics.

Total Assets

Total assets show a fluctuating pattern with an overall moderate increase from approximately 29.4 billion USD to 32.0 billion USD over the six-year span. After peaking in the 2021 fiscal year at nearly 31.4 billion USD, assets declined significantly in 2022 before gradually rising again in subsequent years to reach the highest recorded level at around 32.0 billion USD in 2025.

Shareholders’ Deficit

The shareholders’ deficit figures indicate persistent negative equity positions throughout the periods, with notable volatility. The deficit initially improves from about -7.8 billion USD to -5.3 billion USD by 2021, suggesting an improved equity position at that time. However, this is followed by a steep deterioration in 2022, with the deficit deepening to nearly -8.7 billion USD. Subsequent years show some recovery but still reflect a substantial negative equity position, ending close to -8.1 billion USD in 2025. The data implies ongoing capital or profitability challenges impacting net equity.

Adjusted Total Assets

Adjusted total assets follow a trend similar to the raw total assets but at reduced levels, indicating adjustments that reduce the asset base by a consistent margin. These adjusted amounts descend from approximately 27.6 billion USD in 2020 to 26.2 billion USD in 2022, then rise gradually to just over 30.2 billion USD by 2025. This suggests underlying asset quality or valuation adjustments that moderate the reported asset size without altering the general trend of recovery after 2022.

Adjusted Total Deficit

The adjusted total deficit figures present a different profile compared to the raw shareholders’ deficit. Starting near -1.3 billion USD in 2020, the adjusted equity position shifts to a positive 1.0 billion USD in 2021, reflecting a temporary improved adjusted capital standing. However, it reverts to negative territory in the following years, fluctuating between roughly -2.4 billion USD and -1.4 billion USD through 2025. This volatility and the smaller magnitudes relative to raw deficits imply that adjustments partially mitigate reported losses or negative equity but do not eliminate underlying deficit concerns.

Financial Leverage

Reported financial leverage ratios are not fully available, but an adjusted financial leverage metric was recorded at 28.3 in 2021. This figure suggests a high reliance on debt or liabilities in the adjusted capital structure during that period. The absence of more recent data precludes a full trend analysis, but the available ratio points to significant leverage risk around the 2021 fiscal year.

Overall, the financial data reflects a company managing fluctuating asset levels and persistent negative equity, with partial adjustments revealing improved but still challenging capital positions. The trends highlight the importance of continuing financial strategies aimed at strengthening equity and optimizing asset management to improve financial stability over the longer term.

The financial data reveals several notable trends in the company's profitability and revenue performance over the observed periods.

Net Earnings and Profit Margins

Net earnings attributable to the company experienced a significant increase from approximately 928 million US dollars in 2020 to over 4.19 billion in 2021, representing substantial growth. Following this peak, net earnings showed a fluctuating but generally declining trend, falling to about 1.86 billion by 2025. Correspondingly, the reported net profit margin peaked at 14.45% in 2021, declined to around 10% in the subsequent intermediate years, and dropped sharply to just under 5% in 2025. This indicates that while the company was highly profitable in 2021, its profitability relative to revenue has decreased notably in later years.

Net Revenues

Net revenues demonstrated consistent growth across the timeline, rising from approximately 23.5 billion US dollars in 2020 to nearly 37.2 billion in 2025. The increase each year was steady, though the rate of growth appeared to slow slightly in the final years. This steady revenue growth contrasts with the volatility observed in net earnings and profit margins, suggesting potentially increased costs or other factors impacting profitability despite growing sales.

Adjusted Net Earnings and Margins

Adjusted net earnings, which include noncontrolling interests and exclude certain items for analytical clarity, exhibited a similar pattern to reported net earnings, with a large increase from around 1.09 billion in 2020 to 4.59 billion in 2021. After this peak, adjusted earnings also decreased, reaching approximately 1.69 billion by 2025. The adjusted net profit margin reflected a peak of 15.79% in 2021, followed by a decline to 4.55% in 2025, mirroring the trend in reported margins. This adjustment confirms that the underlying profitability experienced similar fluctuations, reinforcing the observation of reduced net margin efficiency in recent periods.

Overall, the data indicates the company experienced a substantial improvement in earnings and profitability in 2021, which was followed by a period of weakening profit margins despite continued revenue growth. This suggests increased costs, margin pressures, or other operational challenges impacting net earnings beyond top-line performance. The sharp decline in both reported and adjusted profit margins and net earnings in the most recent year may warrant further investigation into specific cost drivers or market conditions affecting profitability.

The financial data reveals several notable trends and fluctuations over the observed periods. Net earnings attributable to the company exhibit considerable volatility, peaking in the fiscal year ending October 3, 2021, at approximately 4.2 billion US dollars. Subsequent years show a decrease, with net earnings falling to a low of around 1.9 billion US dollars by the period ending September 28, 2025. This indicates challenges in maintaining consistent profitability after the 2021 peak.

Shareholders’ deficit remains persistently negative throughout all years, indicating a continual excess of liabilities over shareholders' equity. While the deficit lessened from about -7.8 billion US dollars in 2020 to approximately -5.3 billion in 2021, it worsened again in subsequent years, reaching about -8.1 billion by 2025. This pattern suggests ongoing financial structural challenges and potential concerns regarding the company’s equity position.

The adjusted net earnings, which include noncontrolling interests, follow a pattern similar to the net earnings, with a peak in 2021 at roughly 4.6 billion US dollars, followed by a decline and slight recovery before falling again in 2025. This measure indicates that adjustments for noncontrolling interests do not significantly alter the overall trend observed in profitability.

Adjusted total deficit shows some improvement in 2021, turning positive at approximately 1.0 billion US dollars, suggesting a temporary recovery or correction in the financial health. However, this position deteriorates again in the subsequent years, moving back to negative territory, which aligns with the worsening shareholders’ deficit.

The reported Return on Equity (ROE) data is unavailable, limiting the ability to assess profitability relative to equity. Nevertheless, the available adjusted ROE for 2021 stands exceptionally high at 439.67%, indicating a highly profitable year compared to equity after adjustments. The absence of ROE data for other periods restricts trend analysis across multiple years.

In summary, the financial performance exhibits significant volatility, with a notable profitability peak in 2021, followed by declines. Equity position challenges persist, as reflected by sustained shareholders' deficit and fluctuations in adjusted total deficit. The data suggests the company faced considerable financial fluctuations and structural issues during the analyzed timeframe.

The financial performance over the periods demonstrates notable fluctuations in net earnings and asset utilization. The net earnings attributable to Starbucks showed a substantial increase in the second period, reaching a peak, before experiencing a general decline in subsequent years. Specifically, after peaking at approximately 4.2 billion in the second period, earnings decreased to 3.28 billion and then rose again to 4.12 billion before declining to 3.76 billion and ultimately falling sharply to 1.86 billion by the last period.

Total assets presented a less volatile pattern, with some variation but generally trending upward. The total assets increased from around 29.4 billion to 31.4 billion by the second period, decreased to approximately 27.98 billion in the third period, and then steadily increased once again, ending at about 32.0 billion in the final period. This suggests some asset reallocation or disposals followed by growth in asset base.

The reported Return on Assets (ROA) fluctuated significantly, with a pronounced peak at 13.38% in the second period, followed by a slight decline to 11.73%, then peaking again at 14.01%. Subsequently, it declined sharply to 12%, and further down to 5.8% in the final period. This trend indicates variability in the company’s efficiency at generating profit from its asset base, with the latest decline suggesting reduced operational efficiency or profitability.

Adjusted net earnings, including noncontrolling interests, track a similar pattern to net earnings but with some noticeable differences. After peaking at about 4.59 billion in the second period, adjusted net earnings dropped more sharply to around 2.56 billion in the third period, then partially recovered to 3.63 billion and 4.04 billion in the following periods before falling to approximately 1.69 billion in the last period. This emphasizes volatility in underlying earnings quality and minority interest impacts.

Adjusted total assets reflect a similar trajectory to total assets, with amounts rising initially, dipping mid-term, and increasing thereafter, ending slightly below the reported total assets at about 30.2 billion in the final period. The adjusted ROA showed a strong peak of 15.54% in the second period but experienced a drastic fall to 9.77% in the third, then fluctuated moderately before dropping sharply to 5.58% in the last period, mirroring the pattern observed in reported ROA but generally indicating a higher margin in earlier years.

Overall, the data indicate that while asset bases have grown over the long term, profitability and return metrics have been inconsistent, with significant peaks in the earlier years followed by steady declines toward the end of the period analyzed. The substantial drop in both net earnings and ROA in the final period signals challenges in maintaining profitability and efficient asset utilization moving forward.