Starbucks Corp. (NASDAQ:SBUX)

Total Asset Turnover

The reported total asset turnover experienced a significant decline from 1.38 in 2019 to 0.8 in 2020, followed by a gradual recovery to 1.15 by 2024. The adjusted total asset turnover similarly decreased from 0.99 in 2019 to 0.85 in 2020 but then increased steadily, reaching 1.22 in 2024. This suggests an initial impact on asset efficiency with subsequent improvements over the period.

Current Ratio

Reported current ratio trends declined after reaching a peak of 1.2 in 2021, falling to 0.75 by 2024. In contrast, the adjusted current ratio showed a rise from 1.16 in 2019 to 1.49 in 2021, but then declined to 0.94 in 2024. This pattern indicates a short-term improvement in liquidity before weakening in the more recent years.

Debt to Equity and Debt to Capital

Adjusted debt to equity ratio data is incomplete but shows a reduction from a very high 95.22 in 2019 to 22.61 in 2021. The reported debt to capital ratio declined from 2.26 in 2019 to 1.57 in 2021, then fluctuated slightly, ending at 1.92 in 2024. Adjusted debt to capital remained relatively stable between 0.96 and 1.11 over the years. These trends reflect efforts to manage debt levels and capital structure, with some volatility present.

Financial Leverage

The available adjusted financial leverage data shows a steep decrease from 125.23 in 2019 to 28.3 in 2021, indicating a significant reduction in leverage during this period.

Net Profit Margin

The reported net profit margin dropped sharply from 13.58% in 2019 to 3.95% in 2020, rebounding to above 10% thereafter but not returning to the initial level, ending at 10.4% in 2024. The adjusted net profit margin followed a similar trajectory with a dip from 6% in 2019 to 4.64% in 2020, then increased to 11.18% by 2024. This reflects an initial profitability challenge with recovery and improved earnings later.

Return on Equity (ROE)

Adjusted ROE data disclosed only for 2019 and 2021 reveals a decline from an exceptionally high 746.92% in 2019 to 439.67% in 2021. Due to missing data for other years, a complete trend analysis is not possible, but the drop indicates a reduction in return efficiency relative to equity during the observed period.

Return on Assets (ROA)

The reported ROA fell substantially from 18.73% in 2019 to 3.16% in 2020, then improved steadily to 12% by 2024. Adjusted ROA likewise decreased from 5.96% to 3.96% over the same initial period but subsequently increased to 13.65%. The recovery indicates a strengthening asset profitability after an initial downturn.

The financial data reveals several noteworthy trends over the analyzed periods. Net revenues have generally exhibited a positive growth trajectory, increasing from approximately $26.5 billion in 2019 to about $36.2 billion in 2024, with a slight deceleration in revenue growth between 2023 and 2024. Total assets showed an initial sharp increase from 2019 to 2020, rising from around $19.2 billion to $29.4 billion, followed by a period of fluctuation, eventually reaching approximately $31.3 billion by 2024.

The reported total asset turnover ratio initially declined significantly from 1.38 in 2019 to 0.8 in 2020, indicating reduced efficiency in utilizing assets to generate revenues. Subsequently, it improved steadily to 1.22 in 2023 before slightly declining to 1.15 in 2024. This pattern suggests an initial impact likely due to external factors followed by efforts to enhance asset utilization.

When considering adjusted figures, which account for certain non-operational factors, adjusted net revenues mirror the trend observed in reported revenues, rising from $26.1 billion in 2019 to around $36.1 billion in 2024. Adjusted total assets increased from $26.3 billion in 2019 to about $29.6 billion by 2024, reflecting different asset base assumptions compared to the reported data. The adjusted total asset turnover ratio demonstrated an initial decline from 0.99 in 2019 to 0.85 in 2020, followed by consistent improvement, reaching a peak of 1.29 in 2023 and slightly decreasing to 1.22 in 2024.

Overall, the trends suggest recovery and strengthening of operational efficiency after a dip in 2020, with both reported and adjusted asset turnover ratios showing improvement in the subsequent years. The revenue growth aligns with asset base changes, supporting enhanced turnover ratios and indicating improved asset management capabilities in recent years.

Net Revenues

Increased steadily from $26.5B in 2019 to $36.2B in 2024, with a slight slowdown in growth from 2023 to 2024.

Total Assets

Jumped sharply from $19.2B in 2019 to $29.4B in 2020, then experienced fluctuations, ending at roughly $31.3B in 2024.

Reported Total Asset Turnover

Dropped from 1.38 in 2019 to 0.8 in 2020, then recovered gradually to 1.22 in 2023 with a minor decline to 1.15 in 2024.

Adjusted Net Revenues

Followed similar growth as reported revenues, increasing from $26.1B in 2019 to $36.1B in 2024.

Adjusted Total Assets

Increased steadily from $26.3B in 2019 to $29.6B in 2024, reflecting asset adjustments differing from reported totals.

Adjusted Total Asset Turnover

Declined initially from 0.99 in 2019 to 0.85 in 2020, then improved consistently to 1.29 in 2023, followed by a slight decrease to 1.22 in 2024.

The analysis of the annual financial data reveals notable fluctuations in both current assets and current liabilities over the period examined. Initially, current assets increased steadily from approximately 5.65 billion US dollars in 2019 to a peak of about 9.76 billion US dollars in 2021, followed by a decline to roughly 6.85 billion US dollars by 2024. Conversely, current liabilities showed a continuous upward trend from around 6.17 billion US dollars in 2019 to approximately 9.07 billion US dollars in 2024, with a slight deceleration in growth towards the end of the period.

Current Ratio Trends

The reported current ratio demonstrated improvement from 0.92 in 2019 to 1.20 in 2021, suggesting enhanced short-term liquidity during that interval. However, this was followed by a significant decrease to 0.75 by 2024, indicating potential liquidity pressure in later years.

The adjusted current ratio, which accounts for certain financial adjustments, echoed a similar pattern but maintained higher values throughout. It rose from 1.16 in 2019 to a peak of 1.49 in 2021, then declined to 0.94 by 2024. Even at its lowest, the adjusted ratio remained closer to the benchmark of 1, implying a relatively better liquidity position than the reported measure suggests.

Adjusted Financial Metrics

Adjusted current assets followed the same general trend as reported current assets, increasing through 2021 and then decreasing towards 2024, but consistently remained marginally higher than reported figures.

Adjusted current liabilities were considerably lower than reported current liabilities for all years, suggesting adjustments that reduce the liability base significantly. This adjustment led to notably higher adjusted current ratios compared to reported ratios, signaling a more favorable liquidity outlook when these adjustments are considered.

Overall, the data indicates that the company experienced strengthening liquidity up to the fiscal year ending in 2021, after which both reported and adjusted liquidity metrics declined. Despite the decline, the adjusted current ratio suggests a more resilient liquidity position compared to the reported ratio, highlighting the importance of understanding the nature of adjustments made to current assets and liabilities. The persistent increase in current liabilities alongside a decrease in current assets in the latter years may warrant close monitoring to manage short-term financial obligations effectively.

The financial data reveals several notable trends regarding the debt and equity position over the six-year period from 2019 to 2024. The data focuses on both reported and adjusted measures of debt and shareholders’ deficit, highlighting fluctuations in financial leverage and balance sheet strength.

Total Debt

The total debt has exhibited a general increasing trend, rising from approximately $11.17 billion in 2019 to around $15.57 billion in 2024. Despite a peak in 2020 at approximately $15.91 billion, there was a slight decline in 2021 followed by a steady increase through to 2024.

Shareholders’ Deficit

The shareholders’ deficit has fluctuated significantly during the period. Starting with a deficit of about $6.23 billion in 2019, it worsened sharply by 2020 to $7.81 billion. The deficit then improved in 2021 to around $5.32 billion but deteriorated again in 2022 to $8.71 billion. Subsequently, the deficit showed some recovery, reducing to approximately $7.45 billion by 2024, though still indicating a negative equity position.

Adjusted Total Debt

The adjusted total debt, which likely incorporates additional financial obligations beyond the reported total debt, also shows an upward trajectory. It rose from about $19.97 billion in 2019 to $25.80 billion in 2024. The progression demonstrates continuous growth in the company’s financial obligations when considering these adjustments.

Adjusted Total Deficit

The adjusted total deficit figures oscillate between positive and negative values, indicating variability in adjusted net equity positions. The deficit started mildly positive at around $210 thousand in 2019, turned negative in 2020 reaching about -$1.35 million, then improved to a positive $1.04 million in 2021. From 2022 onwards, it reverted to negative values again, though the magnitude reduced progressively until 2024 at approximately -$1.42 million. This volatility reflects changing adjustments affecting equity calculations.

Reported Debt to Equity Ratio

The reported debt to equity ratio is not available for the analysis period, limiting insight into leverage from this perspective.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio is reported for 2019 and 2021 only, showing a significant decrease from 95.22 in 2019 to 22.61 in 2021. This sizable decline suggests a substantial improvement in the company's relative debt level compared to its adjusted equity during those years. However, the absence of subsequent data limits the ability to determine if this improvement was maintained beyond 2021.

Overall, the company exhibits a pattern of increasing total and adjusted debt levels coupled with fluctuating but generally negative shareholders’ equity deficits. While the adjusted debt to equity ratio saw notable improvement initially, subsequent data is insufficient to confirm a sustained trend. The fluctuations in adjusted total deficit suggest adjustments materially impact the equity position and should be closely monitored to understand the company’s financial leverage and solvency more comprehensively.

The financial data reveals notable trends in the company's debt and capital structure over the six-year period from 2019 to 2024.

Total Debt

Total debt increased significantly from approximately $11.17 billion in 2019 to around $15.57 billion in 2024. The largest jump occurred between 2019 and 2020, followed by some fluctuations but generally maintaining an upward trajectory, reflecting growing liabilities.

Total Capital

Total capital showed considerable volatility. It rose sharply from about $4.93 billion in 2019 to $9.29 billion in 2021, then declined to $6.16 billion in 2022 before partially recovering to $8.12 billion in 2024. This variation suggests changes in equity financing or retained earnings impacting capitalization.

Reported Debt to Capital Ratio

The reported debt to capital ratio declined from 2.26 in 2019 to 1.57 in 2021, indicating reduced leverage relative to reported capital. However, it increased again to 2.41 in 2022 and then decreased to 1.92 by 2024. These movements reflect fluctuations in leverage, with higher reported debt levels relative to reported capital during some periods.

Adjusted Total Debt

Adjusted total debt consistently rose from about $19.97 billion in 2019 to $25.80 billion in 2024. The steady increase suggests a growing burden of debt when considering all adjustments, indicating a trend towards higher overall indebtedness.

Adjusted Total Capital

Adjusted total capital increased from approximately $20.18 billion in 2019 to $24.38 billion in 2024, though with some variability, notably a dip in 2022 to around $21.20 billion. This indicates moderate growth in total adjusted capital over the period but with some periods of contraction.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio hovered close to 1 throughout the six years, starting at 0.99 in 2019 and rising slightly to a peak of 1.11 in 2022 before falling back to 1.06 in 2024. This stability near parity denotes a balanced use of debt and capital on an adjusted basis, with modest increases in leverage during the mid-period years.

Overall, the data suggests an increasing reliance on debt financing, highlighted by the upward trend in both total and adjusted debt. Capital levels have exhibited some volatility but generally increased when adjusted for certain factors. The leverage ratios on both reported and adjusted bases indicate fluctuations in financial risk levels, with adjusted data portraying a more balanced capital structure compared to reported figures. The company appears to maintain a relatively stable adjusted debt-to-capital ratio close to one, implying careful management of indebtedness relative to available capital resources.

The analysis of the financial data over the periods from September 2019 to September 2024 reveals several notable trends and changes in the company's financial position.

Total assets

Total assets showed an overall increasing trend with some fluctuations. The value rose significantly from approximately 19.2 billion US dollars in 2019 to about 31.3 billion in 2024. There was a peak at the end of 2021 with about 31.4 billion, followed by a decline in 2022 to approximately 27.9 billion, then a recovery in subsequent years.

Shareholders’ deficit

The shareholders’ deficit remained negative throughout the period, indicating a deficit position. The deficit worsened from about -6.2 billion in 2019 to -7.8 billion in 2020, improved notably in 2021 to around -5.3 billion, then again deteriorated severely in 2022 to roughly -8.7 billion. The figure improved slightly in the two following years but stayed at elevated deficit levels near -7.4 billion by 2024.

Adjusted total assets

The adjusted total assets followed a similar pattern to the reported total assets but with higher absolute values. Commencing at about 26.3 billion in 2019, there was a slight decline and fluctuations thereafter, with values ranging between approximately 26.2 billion and 29.6 billion. The adjusted figures indicate a somewhat more volatile asset base when considering adjustments.

Adjusted total deficit

The adjusted total deficit displayed considerable variability, starting positive at around 210 million in 2019 and turning negative in 2020 at about -1.3 billion. It swung to a small positive figure in 2021 and then again entered negative territory, reaching nearly -2.4 billion in 2022 before improving slightly to around -1.4 billion by 2024. This fluctuation suggests significant changes in adjusted financial obligations or valuation adjustments over the years.

Financial leverage indicators

Data on reported financial leverage is incomplete across the periods, limiting trend analysis. However, the available adjusted financial leverage ratios show a high value of 125.23 in 2019, followed by a sharp decline to 28.3 in 2021. The absence of data for other years curtails further assessment but indicates a potentially significant deleveraging or revaluation effect between 2019 and 2021.

In summary, the asset base expanded notably over the period, though with intermediate declines. The persistent shareholders’ deficit highlights ongoing equity challenges. Adjusted figures reveal greater instability in financial positions, with fluctuations in total deficit suggesting variable underlying adjustments. The adjusted financial leverage indicates a noteworthy reduction in leverage between 2019 and 2021, but incomplete data restricts comprehensive leverage trend analysis.

The financial data over the six-year period reveals notable fluctuations in profitability and revenue trends. Net revenues demonstrated a general upward trajectory, increasing from approximately $26.5 billion in 2019 to about $36.2 billion in 2024. This growth was consistent, with a significant jump observed between 2020 and 2021, and continued steady increases thereafter, indicating successful sales expansion or market conditions favorable to revenue generation.

Net earnings attributable to the company displayed higher volatility than revenues. Starting at nearly $3.6 billion in 2019, net earnings dropped sharply in 2020 to under $1 billion, likely reflecting adverse conditions impacting profitability that year. Earnings recovered strongly in 2021 to over $4.1 billion, followed by a decline in 2022, a moderate rebound in 2023, and a slight decrease again in 2024. This pattern suggests challenges in maintaining stable profitability despite increasing revenues.

The reported net profit margin mirrored the swings in net earnings, dropping from 13.58% in 2019 to 3.95% in 2020, then rebounding to a peak of 14.45% in 2021. It decreased again in 2022 before moderately improving in the following two years, ending at 10.4% in 2024. These margin fluctuations highlight variability in cost management or operational efficiency alongside revenue shifts.

Adjusted financial metrics, which typically remove certain non-recurring items or noncontrolling interests for a clearer operational perspective, follow a similar pattern. Adjusted net revenues aligned closely with reported revenues and rose steadily over the period. Adjusted net earnings experienced a drop from 2019 to 2020, followed by a substantial increase in 2021. Despite a fall in 2022, adjusted earnings resumed an upward trend through 2023 and 2024.

The adjusted net profit margin exhibited considerable volatility as well, starting at 6.0% in 2019, dipping to 4.64% in 2020, and peaking impressively at 15.79% in 2021. There was a notable decline in 2022 to 7.97%, but margins improved thereafter, reaching 11.18% by 2024. This indicates operational profitability experienced significant disruptions but was able to recover partially in recent years.

Overall, the data suggests an organization that experienced a significant negative impact on earnings and profitability in 2020, presumably due to extraordinary external or internal conditions. Thereafter, it achieved substantial recovery in both earnings and profit margins, although with some volatility persisting. Revenues increased steadily across all years, underscoring consistent business growth. However, profit margins did not improve uniformly, pointing to ongoing challenges in cost control or other profit-influencing factors.

Revenue Trend

Consistent increase from $26.5 billion in 2019 to $36.2 billion in 2024.

Net Earnings Behavior

Significant drop in 2020 followed by recovery in 2021, with fluctuations in subsequent years.

Profit Margin Variation

Sharp decrease in 2020, peak in 2021, followed by moderate recovery but with volatility until 2024.

Adjusted Metrics

Parallel trends to reported figures, highlighting operational profitability fluctuations but overall recovery post-2020.

The financial data reveals notable fluctuations and trends in profitability and equity positions over the review periods.

Net Earnings Attributable to Starbucks

The net earnings exhibit considerable variability. Beginning at approximately 3.6 billion USD in 2019, earnings dropped significantly to around 928 million USD in 2020, likely reflecting adverse economic conditions during that period. Subsequently, earnings rebounded sharply to nearly 4.2 billion USD in 2021 but declined in the next two years to approximately 3.3 billion USD in 2022 before recovering to about 4.1 billion USD in 2023 and then settling at 3.8 billion USD in 2024. This pattern highlights sensitivity to external factors and a volatile earnings trajectory.

Shareholders’ Deficit

The shareholders’ deficit, consistently negative, demonstrates substantial fluctuations. It worsened from approximately -6.2 billion USD in 2019 to about -7.8 billion USD in 2020; then improved markedly in 2021 to near -5.3 billion USD. However, the deficit deepened again in 2022 to roughly -8.7 billion USD and remained high in 2023 and 2024, though it lessened slightly to about -7.4 billion USD by the last period. The oscillations suggest ongoing challenges in equity management or retained losses.

Adjusted Net Earnings Including Noncontrolling Interests

The adjusted net earnings, which incorporate noncontrolling interests, reflect dynamics similar to the net earnings but with distinct values. They started near 1.6 billion USD in 2019, dipped to about 1.1 billion USD in 2020, surged to approximately 4.6 billion USD in 2021, then fell to around 2.6 billion USD in 2022. The figure then rose to 3.6 billion USD in 2023 and slightly increased further to nearly 4.0 billion USD in 2024. The pattern confirms the variability observed in core profitability measures.

Adjusted Total Deficit

This metric shows alternating positive and negative values, indicating fluctuations in adjusted total deficit positions. Starting positively at around 210 million USD in 2019, it deteriorated to a deficit of approximately -1.3 billion USD in 2020, rebounded to a positive 1.0 billion USD in 2021, then reversed sharply again to negative values of -2.4 billion USD in 2022, remaining negative but less severe in 2023 and 2024 at about -1.9 billion USD and -1.4 billion USD respectively. This oscillation underlines instability in adjusted financial standing.

Return on Equity (ROE)

The reported ROE data is unavailable for the periods. However, adjusted ROE percentages are provided for some years, standing at 746.92% in 2019 and 439.67% in 2021. The absence of further data limits trend analysis, but the extremely high values suggest that adjustments significantly affect the perception of profitability relative to equity.

The financial data reveals several key trends over the six-year period under review. Net earnings attributable to the company exhibit considerable volatility, with a significant decline observed in 2020, followed by a strong recovery in 2021, and fluctuations in the subsequent years. Specifically, net earnings dropped sharply from approximately 3.6 billion USD in 2019 to under 1 billion USD in 2020, then rebounded to over 4.1 billion USD in 2021, before moderating in the ensuing years.

Total assets increased notably in 2020, reaching nearly 29.4 billion USD from 19.2 billion USD in 2019, followed by a steady rise and slight fluctuations thereafter, culminating at 31.3 billion USD in 2024. The reported Return on Assets (ROA) aligns with these earnings trends, plunging from 18.73% in 2019 to a low of 3.16% in 2020, then recovering to a double-digit percentage in subsequent years, though it trended slightly downward toward 12% in 2024.

Adjusted figures, which incorporate noncontrolling interests, present a somewhat different pattern. Adjusted net earnings experienced a dip in 2020 but increased substantially in 2021, reaching a peak of nearly 4.6 billion USD. Although adjusted earnings declined in 2022, they rose again in the following years but slightly below the 2021 peak. Adjusted total assets reflect similar movement to total assets but on higher absolute values, starting from 26.3 billion USD in 2019 and rising to nearly 29.6 billion USD by 2024.

The adjusted ROA follows the earnings trend and exhibits a less pronounced dip in 2020 compared to reported ROA, with a recovery to a high of 15.54% in 2021. After a decline in 2022, it rises again in 2023 and 2024, reaching 13.65%. This suggests improved asset utilization under the adjusted metric in recent years.

Net Earnings

Sharp decline in 2020 followed by recovery and moderate fluctuations thereafter

Total Assets

Significant increase in 2020 with steady growth and minor fluctuations in subsequent years

Reported ROA

Substantial drop in 2020, recovery above 10% after, with a slight downward trend by 2024

Adjusted Net Earnings

Moderate decline in 2020, strong rebound in 2021, and rising tendencies post-2022 with some variability

Adjusted Total Assets

Growth trajectory similar to total assets, but consistently at higher levels

Adjusted ROA

Less pronounced dip in 2020, peaking in 2021, and maintaining stronger returns than reported ROA toward 2024

Overall, the data indicates a significant impact on earnings and return metrics in 2020, likely attributable to extraordinary circumstances during that period. Both reported and adjusted measures demonstrate recovery in the following years, with adjusted figures reflecting a more favorable performance profile. Total and adjusted asset bases have expanded over time, supporting earnings growth and relatively stable returns on assets.