Starbucks Corp. (NASDAQ:SBUX)

Return on Assets (ROA)

The ROA showed a significant decline from 18.73% in 2019 to 3.16% in 2020, indicating a sharp decrease in the company's efficiency at generating profit from its assets during that period. This drop could be associated with external factors or operational challenges. Following 2020, ROA recovered substantially, increasing to 13.38% in 2021 and remaining relatively stable with moderate fluctuations—11.73% in 2022, 14.01% in 2023, and 12% in 2024. This recovery suggests some return to operational efficiency and profitability despite not reaching the peak levels observed in 2019.

Financial Leverage

No data is available for financial leverage over the periods, thus no analysis can be provided for the company's capital structure or debt usage trends from the presented information.

Return on Equity (ROE)

There is an absence of data for ROE across all periods, preventing an assessment of shareholder profitability or effectiveness in using equity capital over time.

Net Profit Margin

The net profit margin exhibited significant fluctuations over the periods. There was a notable decline from 13.58% in 2019 to 3.95% in 2020, indicating a challenging year likely impacted by external factors. Subsequently, the margin recovered sharply to 14.45% in 2021, suggesting improved profitability and operational efficiency. However, after this peak, the margin decreased again to 10.18% in 2022, followed by a slight increase to 11.46% in 2023, and a modest decline to 10.4% in 2024. Overall, the margin shows volatility but remains positive, with recent years stabilizing around the 10-11% range.

Asset Turnover

Asset turnover declined markedly from 1.38 in 2019 to 0.8 in 2020, reflecting a significant drop in sales generation relative to assets, possibly due to reduced operational activity. Following 2020, the ratio gradually improved to 0.93 in 2021 and continued increasing to 1.15 in 2022 and 1.22 in 2023, indicating enhanced efficiency in utilizing assets to generate revenue. In 2024, asset turnover slightly decreased to 1.15 but remained well above 2020 levels. This trend suggests a recovery and strengthening in asset utilization efficiency after an initial downturn.

Financial Leverage

No data was available for financial leverage across all periods, limiting the ability to analyze the company’s use of debt or equity financing impacts on overall financial structure.

Return on Equity (ROE)

This key profitability metric lacks available data for all periods, preventing assessment of the company’s ability to generate returns for shareholders based on net income and equity.

Tax Burden

The tax burden ratio exhibits a gradual decline over the observed periods, decreasing from 0.81 in 2019 to 0.76 in both 2023 and 2024. This trend indicates a slight reduction in the proportion of earnings paid as tax, potentially enhancing net profitability after tax obligations.

Interest Burden

The interest burden ratio shows notable volatility, dropping sharply from 0.93 in 2019 to 0.73 in 2020, before recovering close to previous levels, stabilizing around 0.9 in the most recent years. The initial decline suggests a higher interest expense burden during 2020, possibly due to increased debt or interest rates, followed by an improvement in managing interest costs in subsequent years.

EBIT Margin

EBIT margin experienced significant fluctuations. It dropped markedly from 18.11% in 2019 to a low of 6.82% in 2020, likely reflecting adverse impacts during that year. However, the margin rebounded strongly to 20.05% in 2021 before declining moderately to approximately 15% range in 2023 and 2024. Overall, this pattern suggests recovery and stabilization, though profitability has not consistently returned to the pre-2020 peak level.

Asset Turnover

The asset turnover ratio declined substantially from 1.38 in 2019 to 0.8 in 2020, indicating reduced efficiency in using assets to generate sales during that year. Subsequently, there is a recovery trend, reaching 1.22 in 2023 and marginally decreasing to 1.15 in 2024. This pattern implies improving operational efficiency but not yet fully restored to the highest observed levels.

Financial Leverage and Return on Equity (ROE)

Data for financial leverage and return on equity are not available for the given periods, limiting the ability to evaluate trends in capital structure and shareholder returns.

The analysis of the financial ratios over the given periods reveals several notable trends regarding profitability and efficiency.

Net Profit Margin (%)

The net profit margin experienced a significant decline in 2020, dropping from 13.58% in 2019 to 3.95%. This sharp decrease indicates a notable reduction in profitability during that year. However, a strong recovery followed in 2021 with the margin rebounding to 14.45%, surpassing the 2019 level. Since then, the margin has shown a moderate downward trend, declining to 10.18% in 2022, slightly rising to 11.46% in 2023, and then decreasing again to 10.4% in 2024. Overall, profitability has been volatile, with recovery after the initial drop but some erosion in recent years.

Asset Turnover (ratio)

The asset turnover ratio witnessed a substantial decline in 2020, falling from 1.38 in 2019 to 0.8, suggesting lower efficiency in using assets to generate revenue in that year. From 2021 onward, the ratio has gradually increased, reaching 0.93 in 2021, 1.15 in 2022, and peaking at 1.22 in 2023 before slightly dropping to 1.15 in 2024. This pattern indicates an improving trend in asset utilization efficiency after the downturn, although the most recent value suggests a minor slowdown.

Return on Assets (ROA) (%)

Return on assets also experienced a dramatic decline in 2020, plunging from 18.73% in 2019 to 3.16%. This reflects the combined impact of reduced profitability and asset utilization. The ROA recovered significantly in the subsequent years, increasing to 13.38% in 2021 and maintaining a relatively stable range between 11.73% and 14.01% from 2022 to 2023. In 2024, ROA slightly decreased to 12%. Despite the recovery, the ROA has not yet reached the 2019 peak levels, indicating some ongoing challenges in generating returns from assets.

In summary, the financial data indicates that the company faced a significant downturn in 2020, likely due to external or internal challenges impacting profitability and operational efficiency. A recovery phase followed, with improvements in profit margins, asset utilization, and returns on assets. Nonetheless, the trends in the last two years point to some stabilization at a slightly lower performance level compared to the pre-2020 figures. Continuous monitoring of these ratios will be essential to assess whether the company can sustain and build upon this recovery.

Tax Burden

The tax burden ratio exhibits a gradual decline from 0.81 in 2019 to 0.76 in 2023 and 2024, indicating a slight decrease in the effective tax rate over the analyzed periods.

Interest Burden

The interest burden ratio shows significant fluctuation, dropping sharply from 0.93 in 2019 to 0.73 in 2020, rebounding to around 0.9 in subsequent years through 2024. This suggests a temporary increase in interest expenses or financial costs concentrated in 2020, followed by stabilization.

EBIT Margin

EBIT margin experienced a marked decline from 18.11% in 2019 to 6.82% in 2020, reflecting a significant contraction in operating profitability likely due to external challenges during that year. The margin recovers strongly to 20.05% in 2021, but then declines in the following years, reaching 15.29% in 2024. This indicates operating profitability remains below its early peak while maintaining a moderate level.

Asset Turnover

Asset turnover decreases notably from 1.38 in 2019 to 0.80 in 2020, after which it gradually improves, peaking at 1.22 in 2023 before slightly decreasing to 1.15 in 2024. This trend suggests an initial decline in efficiency in utilizing assets to generate sales, followed by recovery and stabilization, though it does not fully return to the initial pre-2020 level.

Return on Assets (ROA)

ROA mirrors the volatility seen in other metrics, falling sharply from 18.73% in 2019 to 3.16% in 2020. It then recovers to 13.38% in 2021 before gradually declining to 12% by 2024. This pattern reflects a strong impact on overall asset profitability in 2020 with a partial recovery afterwards, though the ROA remains lower than the 2019 benchmark.

Tax Burden

The tax burden ratio has demonstrated a gradual decline over the observed periods, decreasing from 0.81 in 2019 to 0.76 by 2024. This indicates a slight reduction in tax expense relative to pretax income, which could imply improved tax efficiency or changes in tax regulations impacting the effective tax rate.

Interest Burden

The interest burden ratio experienced significant variation, most notably dropping from 0.93 in 2019 to 0.73 in 2020, indicating increased interest expense relative to earnings before interest and taxes during that period. However, from 2021 onwards, this ratio generally recovered, stabilizing around 0.9, suggesting that interest costs relative to earnings returned to a more normal level after the 2020 dip.

EBIT Margin

The EBIT margin showed considerable fluctuation throughout the years. It declined sharply from 18.11% in 2019 to 6.82% in 2020, reflecting a substantial impact on operating profitability, likely linked to adverse market or operational conditions. Subsequently, the margin improved significantly to 20.05% in 2021, then experienced a moderate downward trend to reach 15.29% by 2024. The improvement after 2020 suggests a recovery phase, though the later decline indicates some challenges in maintaining earlier profit levels.

Net Profit Margin

Net profit margin closely mirrors the pattern seen in EBIT margin. It dropped notably from 13.58% in 2019 to 3.95% in 2020, aligning with the impact noted on operating profit. This was followed by a strong rebound to 14.45% in 2021. However, a subsequent decline occurred, bringing the margin down to 10.4% in 2024. The trend suggests partial recovery in bottom-line profitability, but with constraints that prevented reaching pre-2020 levels again.