Starbucks Corp. (NASDAQ:SBUX)

The analysis of the available quarterly financial data reveals several key trends in profitability and financial performance metrics over recent periods.

Return on Assets (ROA)

The ROA demonstrates a fluctuating but overall declining trend over the presented time frame. Initially, from the end of 2018 through mid-2019, ROA data is missing, but starting from September 2019, the ROA was reported at 18.73%, followed by a noticeable decrease to 13.43% and further declines in subsequent quarters. The lowest recorded ROA occurred around June 2020 at 2.22%, coinciding with a challenging economic environment likely affecting asset profitability.

Post this low point, ROA improved steadily, reaching over 15% in late 2021 and early 2022, indicating a recovery phase in asset utilization efficiency. From 2022 onward, the ROA exhibited moderate fluctuations, generally trending downwards from approximately 14.8% to under 10% by March 2025. This suggests some volatility in asset returns and potential challenges in maintaining previous profit levels on asset base.

Financial Leverage

No data were provided for financial leverage ratios across all time periods, thus no trend or assessment can be made regarding the company's leverage or capital structure through this metric.

Return on Equity (ROE)

Similarly, no ROE data were available for any of the periods analyzed. As a result, the company’s equity profitability and shareholder return trends cannot be evaluated within this dataset.

In summary, the key insight from the data is centered on the ROA metric, which after initial missing values, shows a significant dip in mid-2020 followed by a partial recovery but then a gradual decline through early 2025. The absence of important leverage and equity return metrics limits a comprehensive assessment of financial structure and shareholder value creation over the examined quarters.

The net profit margin exhibits noticeable fluctuations over the observed periods. It peaked around the first quarter of 2022, reaching close to 14.5%, which suggests strong profitability during that time. However, subsequent quarters show a gradual decline, with margins tapering off to approximately 8.6% by the first quarter of 2025. The margin experienced a significant drop during the second quarter of 2020, likely reflecting external challenges during that period, but recovered relatively quickly in the following quarters.

Asset turnover displays a general upward trend from mid-2020 onwards. Beginning at approximately 0.8 in late 2020, it steadily rises to about 1.15 by early 2025, indicating improving efficiency in utilizing assets to generate revenue. Earlier periods show more variability, with a decline from 1.38 in mid-2019 to around 0.77 in early 2021, suggesting a temporary dip in operational efficiency during those years.

Data for financial leverage and return on equity (ROE) are not available for the periods under review, limiting the capacity to assess the company's capital structure and overall shareholder returns directly from these metrics.

Overall, the financial indicators exhibit a recovery and strengthening phase starting around 2021, with profitability and operational efficiency showing improvements. However, the net profit margin shows some volatility with a downward trend in the most recent quarters, indicating potential pressures on profitability despite better asset utilization.

The financial data presents several key trends over the analyzed quarterly periods. Although some early periods contain missing data, the available information allows for an evaluation of tax burden, interest burden, EBIT margin, and asset turnover trends. The financial leverage and return on equity metrics are not reported for the periods, limiting the depth of comprehensive return analysis.

Tax Burden

The tax burden ratio exhibits relative stability throughout the periods with values ranging narrowly from approximately 0.75 to 0.81. Starting around 0.81 near the end of 2019, the ratio shows a slight gradual decline and fluctuates around 0.76 to 0.78 during 2023 and early 2024. This consistency indicates a steady effective tax rate impact on earnings across the observed timeline.

Interest Burden

The interest burden ratio shows more pronounced variation over time. It begins at a higher level near 0.93 in late 2019 and the first quarters of 2020. A significant dip occurs between the first half and third quarter of 2020, reaching a low around 0.64, indicative of increased interest expense relative to earnings before interest and taxes during this period, likely reflecting economic disruptions. Subsequently, the ratio recovers gradually and stabilizes around 0.89 to 0.92 from late 2020 into 2025, suggesting improved interest expense control or reduced debt burden.

EBIT Margin

The EBIT margin presents a marked decline during 2020, decreasing from levels above 17% in early 2019 to a low as low as approximately 5.6% in March 2020. Following this low, the margin shows a recovery trend, climbing back and peaking at about 20% by early 2022. Afterward, a moderate decline ensues, with values settling in the 12.8% to 16.9% range toward the end of 2024 and early 2025. Overall, the fluctuations reveal sensitivity to operational challenges, with a strong rebound after initial pandemic-related impacts, then moderate normalization.

Asset Turnover

The asset turnover ratio declines significantly during 2019 and early 2020, dropping from approximately 1.38 to a low near 0.77, reflecting reduced efficiency in the use of assets to generate sales during this timeframe. From mid-2020 onward, this ratio shows a consistent upward trend, surpassing pre-pandemic levels by late 2023 with ratios exceeding 1.2. This improvement signals enhanced asset utilization and operational recovery over the latter periods.

Financial Leverage and Return on Equity

The data does not include reported values for financial leverage or return on equity, preventing a direct assessment of the company’s leverage position or overall equity profitability during the periods under review.

The financial data exhibits several key trends in profitability and efficiency ratios over the analyzed quarters.

Net Profit Margin

The net profit margin shows a variable pattern, beginning with relatively high values above 13% at the end of 2018 and early 2019. This ratio peaked at approximately 14.47% in early 2022, indicating strong profitability during this period. However, it experienced a notable decline starting late 2019, reaching a low around 2.87-4.18% throughout mid-2020, reflective of challenging conditions. From late 2020 onward, net profit margin gradually improved, stabilizing around 10-11% by late 2023 but then declined to 8.61% by the first quarter of 2025. Overall, this suggests resilience but some pressure on profitability in recent quarters.

Asset Turnover

The asset turnover ratio experienced a decline from about 1.38 in late 2018 to a trough of approximately 0.77-0.83 during early to late 2020. This indicates reduced efficiency in generating sales from assets during that interval. Following this slump, there is a clear recovery trend with asset turnover increasing steadily to above 1.20 by the end of 2023. A mild decrease in 2024 is observed, with the figure resting near 1.13-1.15 by early 2025. This pattern reflects a rebound in asset utilization efficiency following the downturn period.

Return on Assets (ROA)

ROA trends mirror aspects of both profit margin and asset turnover movements. Starting at around 18.73% in late 2018, the metric declined significantly through 2019 and into 2020, reaching a low near 2.22% in the first half of 2020, indicating a period of diminished profitability relative to assets. Subsequently, ROA rebounded steadily, reaching roughly 15-15.24% in 2021 and early 2022. Thereafter, the ratio moderated slightly but remained above 9.89% by early 2025, which suggests the company managed to restore and maintain stronger asset profitability compared to the mid-2020 trough.

In summary, the analyzed period reflects a significant dip in financial performance around 2020, likely attributable to external market conditions affecting profitability and asset efficiency. The subsequent recovery phases illustrate a strengthening in both margins and asset utilization, although recent quarters show slight softening, warranting monitoring for sustained trend resilience.

The analysis of the quarterly financial ratios reveals several notable patterns and trends over the reported periods.

Tax Burden

The tax burden ratio maintains a relatively stable level, fluctuating narrowly around 0.76 to 0.81. Initially, it is at 0.81 and gradually declines to approximately 0.76 by the latest periods. This indicates consistent effective tax rates, suggesting stable tax expense management over time.

Interest Burden

The interest burden ratio exhibits more variability. Early on, it remains high at about 0.93 but experiences a sharp decline down to 0.64 before rebounding to levels near 0.9 in subsequent quarters. The drop reflects a period of higher interest expenses or lower earnings before interest and taxes relative to earnings before taxes, potentially indicating increased leverage or cost pressures during that phase.

EBIT Margin

The EBIT margin demonstrates a significant decrease during certain intervals, falling from above 18% to as low as 5.6% in the mid-2020 period, reflecting considerable operating profitability challenges. After this low point, the margin recovers progressively, reaching levels around 16-20% in later quarters, although a slight downward trend appears toward the end of the data range. This variability suggests sensitivity to external factors likely impacting operating income.

Asset Turnover

Asset turnover ratio starts around 1.38 but declines markedly to below 0.8 in the lower points, linked temporally with reduced operational efficiency or sales relative to asset base. Subsequently, it improves steadily, surpassing 1.2 in recent quarters, indicating enhanced use of assets to generate revenue. However, a mild decrease toward the latest periods suggests some recent softening.

Return on Assets (ROA)

ROA trends closely mirror fluctuations in both EBIT margin and asset turnover, starting near 18.7%, decreasing sharply below 3% during the downturn phase, and then recovering to around 14-15% in mid-later stages. In the most recent intervals, a decline to under 10% is noted, signaling decreasing overall profitability relative to asset base.

In summary, the financial metrics reflect a period of operational and profitability strain coinciding with mid-2020, likely due to adverse external conditions. Recovery is evident in the following quarters with improving margins and asset utilization, though recent figures indicate a slight deterioration in profitability metrics. The stable tax burden suggests that tax policies or strategies remained consistent throughout the timeline, while interest burden volatility points toward fluctuating financing costs impacting earnings before tax.

Tax Burden

The tax burden ratio remains relatively stable throughout the periods, hovering around 0.76 to 0.80. This indicates a consistent proportion of income retained after taxes over time, with only slight fluctuations that suggest stable tax management or tax rate environments.

Interest Burden

The interest burden ratio exhibits noticeable variation in the earlier periods, starting at approximately 0.93 and declining to a low near 0.64. Subsequently, it recovers and stabilizes around 0.88 to 0.91 in later periods. The mid-period decrease could reflect increased interest expenses or leverage, followed by improvements in interest expense management or debt reduction.

EBIT Margin

The EBIT margin shows a declining trend from a peak around 18.5% to a low near 5.6% in the middle of the timeline, indicative of significant compression in operating profitability during that phase. Following this trough, the margin recovers steadily, reaching levels above 16% before declining again towards approximately 12.8% in the final periods. This pattern suggests periods of operational challenges and recovery, possibly influenced by external market conditions or internal cost management efficacy.

Net Profit Margin

The net profit margin mirrors the trend seen in the EBIT margin, falling from approximately 13.8% to a low near 2.9%, which underscores a substantial reduction in overall profitability. A notable recovery follows, with margins rising above 11% before gradually decreasing to about 8.6%. This trajectory reflects impacts on bottom-line performance that likely correspond with the fluctuations in operating efficiency and interest burden observed earlier.