Analysis of Geographic Areas
Starbucks Corp. operates in 2 regions: United States and China.
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- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
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Area Asset Turnover
Starbucks Corp., asset turnover by geographic area
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| United States | ||||||
| China |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
The annual geographic area asset turnover data reveals distinct trends in operational efficiency for both the United States and China over the reported periods.
- United States
- The asset turnover ratio for the United States began at 2.54 in 2019, indicating a relatively high level of asset utilization. A significant decline occurred in 2020, dropping to 1.34, which may suggest reduced efficiency possibly due to external factors impacting operations. Following this low point, a recovery trend is observed with a gradual increase to 1.59 in 2021, 1.77 in 2022, and 1.88 in 2023, showing improvements in asset turnover efficiency. However, in 2024, there is a slight decline to 1.68, indicating a modest decrease in efficiency relative to the previous year.
- China
- The asset turnover ratio in China started at a considerably lower level of 0.88 in 2019. It experienced a decline to 0.58 in 2020, representing a notable reduction in asset utilization. A partial recovery is seen in 2021 with an increase to 0.79, but this was followed by a downward trend again in 2022 to 0.72, a marginal increase to 0.73 in 2023, and a decline to 0.67 in 2024. Overall, the China region displays a less stable pattern with lower turnover ratios and limited sustained improvement over the examined periods.
Overall, the United States demonstrates a generally higher and more resilient asset turnover ratio compared to China. Both markets faced a pronounced dip in 2020, likely influenced by broader economic or operational disruptions. The United States shows a stronger recovery trajectory post-2020, whereas China’s ratios remain relatively low and fluctuating without consistent upward momentum. These trends suggest differing efficiencies or strategic challenges in asset utilization across the two geographic areas.
Area Asset Turnover: United States
Starbucks Corp.; United States; area asset turnover calculation
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net revenues | ||||||
| Long-lived assets | ||||||
| Area Activity Ratio | ||||||
| Area asset turnover1 | ||||||
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
1 2024 Calculation
Area asset turnover = Net revenues ÷ Long-lived assets
= ÷ =
The data exhibits several notable trends concerning the financial metrics over the six-year period.
- Net Revenues
- Net revenues demonstrate an overall upward trend, increasing from 18,622,700 thousand US dollars in 2019 to 26,707,400 thousand US dollars in 2024. Despite a decline observed in 2020, likely due to external factors, revenues recovered and grew consistently in subsequent years with strong year-over-year increases, reaching a peak in 2024.
- Long-lived Assets
- The value of long-lived assets shows a significant increase, rising from 7,330,200 thousand US dollars in 2019 to 15,878,400 thousand US dollars in 2024. The sharpest increase occurred between 2019 and 2020, followed by steady growth in the asset base through 2024. This suggests capital investments and asset accumulation over time.
- Area Asset Turnover
- The area asset turnover ratio declined sharply from 2.54 in 2019 to 1.34 in 2020, reflecting a possible decrease in efficiency or sales relative to assets during that period. From 2020 onwards, the ratio rebounded gradually to 1.88 by 2023, indicating improved utilization of assets, though it slightly decreased to 1.68 in 2024. Despite this minor dip, the efficiency remains below the 2019 level.
In summary, the data indicates recovery and growth in revenue alongside increasing asset investment. However, the efficiency of asset utilization as measured by the area asset turnover ratio has not fully returned to its initial 2019 levels, pointing to changing dynamics in asset deployment or market conditions affecting operational efficiency.
Area Asset Turnover: China
Starbucks Corp.; China; area asset turnover calculation
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net revenues | ||||||
| Long-lived assets | ||||||
| Area Activity Ratio | ||||||
| Area asset turnover1 | ||||||
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
1 2024 Calculation
Area asset turnover = Net revenues ÷ Long-lived assets
= ÷ =
The analysis of the financial data over the six-year period reveals several noteworthy trends in the company's performance and asset management within the China geographic area.
- Net Revenues
- Net revenues experienced fluctuations throughout the period. Starting at approximately 2.87 billion US dollars in 2019, revenues declined to about 2.58 billion in 2020. This drop could be attributed to market or operational challenges occurring that year. Subsequently, a significant increase occurred in 2021, reaching roughly 3.67 billion US dollars, indicating a strong recovery or expansion. However, following this peak, revenues then decreased in 2022 to approximately 3.01 billion and remained relatively stable through 2023 and 2024, with minor variations around 3.0 to 3.08 billion US dollars. This pattern suggests a period of volatility followed by stabilization at a level slightly above the initial years.
- Long-lived Assets
- The value of long-lived assets showed a consistent upward trend overall. Beginning at around 3.28 billion US dollars in 2019, the asset base grew markedly in 2020 to about 4.43 billion US dollars and continued to increase, with minor fluctuations, to 4.67 billion in 2021. After a slight reduction to approximately 4.17 billion in 2022, the asset value rose again, reaching its highest point of about 4.51 billion US dollars by 2024. This indicates ongoing investment or acquisition of long-term assets, reflecting expansion or renewal efforts within the geographic area.
- Area Asset Turnover Ratio
- The area asset turnover ratio, which measures the efficiency of asset utilization to generate net revenues, exhibited variation over time. Starting at a ratio of 0.88 in 2019, the efficiency significantly declined to 0.58 in 2020, aligning with the dip in revenues and concurrent increase in assets. The ratio improved to 0.79 in 2021 but then gradually decreased over subsequent years to 0.67 in 2024. This declining trend suggests that while asset levels have grown, the ability to convert these assets into revenue has weakened somewhat in recent years, potentially indicating diminishing returns on investments or challenges in operational efficiency.
In summary, the data portrays a period of recovery and growth in revenues following an initial dip, an overall increase in long-lived assets reflective of capital investment, and a declining trend in asset turnover efficiency. These observations imply that despite the growth in asset base, there may be an emerging need to enhance operational effectiveness to optimize revenue generation from the assets deployed in the China market.
Net revenues
Starbucks Corp., net revenues by geographic area
US$ in thousands
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| United States | ||||||
| China | ||||||
| Other countries | ||||||
| Total |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
- United States Net Revenues
- The net revenues in the United States show a fluctuating yet overall upward trajectory over the analyzed periods. After a decrease from approximately 18.62 billion USD in late 2019 to 16.88 billion USD in 2020, revenues rose significantly to 20.38 billion USD in 2021. This upward trend continued consistently through 2022 and 2023, reaching 26.40 billion USD, and stabilized near that level at 26.71 billion USD in 2024. The data indicates recovery and growth following the downturn in 2020, with the U.S. market remaining the largest contributor to total revenues.
- China Net Revenues
- The revenues from China present a more volatile pattern. Starting at 2.87 billion USD in 2019, they declined to 2.58 billion USD in 2020, then rebounded sharply to 3.67 billion USD in 2021. However, after this peak, revenues from China declined again in 2022 to 3.01 billion USD and hovered around 3.08 billion USD in 2023 before decreasing slightly to 3.01 billion USD in 2024. This trend suggests sensitivity to external factors possibly impacting growth, with a lack of sustained expansion after the 2021 recovery.
- Other Countries Net Revenues
- Net revenues from other countries demonstrate general growth with minor fluctuations. Starting at approximately 5.01 billion USD in 2019, revenues decreased to 4.06 billion USD in 2020 amid a downward trend likely linked to global disruptions. Revenues then increased steadily to 5.01 billion USD in 2021 and continued upward through 2022 and 2023, reaching nearly 6.50 billion USD. A slight decrease to 6.46 billion USD is observed in 2024. The overall pattern reflects a recovery and expansion in markets outside the United States and China.
- Total Net Revenues
- Total net revenues mirror the combined trends of the geographic segments. The total revenue decreased from 26.51 billion USD in 2019 to 23.52 billion USD in 2020, followed by a sharp recovery to 29.06 billion USD in 2021. Thereafter, there is a consistent upward trend, culminating in 36.18 billion USD in 2024. The gradual growth since 2021 indicates overcoming short-term setbacks and achieving expansion across the combined markets.
- Summary of Trends
- The overall data reveals a notable dip in revenues across all regions in 2020, likely due to external economic or operational challenges. The United States and other countries showed robust recoveries and positive growth thereafter, while China’s revenues experienced more volatility with a peak in 2021 followed by stabilization at a slightly lower level. The total net revenues have steadily increased since 2021, highlighting an expanding revenue base despite variances in regional performance.
Long-lived assets
Starbucks Corp., long-lived assets by geographic area
US$ in thousands
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | |
|---|---|---|---|---|---|---|
| United States | ||||||
| China | ||||||
| Other countries | ||||||
| Total |
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29).
The data reflects the trends in long-lived assets across three geographic regions over a six-year period, measured in thousands of US dollars.
- United States
- The asset base in the United States shows a consistent upward trajectory. Starting at approximately $7.33 billion in 2019, there is a significant increase to about $12.62 billion in 2020. Growth continues steadily in the following years, reaching nearly $15.88 billion by 2024. This steady increase indicates substantial ongoing investment or asset accumulation in this primary market.
- China
- Assets in China rose from roughly $3.28 billion in 2019 to a peak of around $4.67 billion in 2021. However, there is a decline in 2022 to approximately $4.17 billion, followed by a slight recovery to $4.51 billion in 2024. This pattern suggests some volatility or restructuring in this region, with asset values not growing as consistently as in the U.S.
- Other countries
- The asset value in other countries displays more fluctuation. Beginning at nearly $2.96 billion in 2019, it climbs to about $4.52 billion in 2020, then decreases over the next two years to roughly $3.61 billion in 2022 before rising again to approximately $4.10 billion in 2024. This indicates a lack of steady growth and possible adjustments in the asset portfolio in these regions.
- Total
- The total long-lived assets show a substantial increase from about $13.57 billion in 2019 to over $21.56 billion in 2020. Thereafter, the total remains relatively stable with minor fluctuations—peaking near $21.64 billion in 2021, dipping to approximately $20.96 billion in 2022, and then rising steadily to nearly $24.49 billion in 2024. The overall growth is driven predominantly by the strong asset increases in the United States, partially offset by variability in China and other countries.
In summary, the United States exhibits strong and steady asset growth, China experiences moderate growth with some volatility, and other countries show fluctuating asset values. The total long-lived assets follow the trend of the U.S. market with overall growth despite regional variances.