Starbucks Corp. (NASDAQ:SBUX)

The analysis of the quarterly financial ratios reveals several notable trends in asset utilization over the periods examined. There is a clear evolution in how efficiently the company utilizes its net fixed assets and total assets to generate revenue.

Net Fixed Asset Turnover

This ratio exhibits an initial decline from 4.22 at the end of 2019 to a low of approximately 3.75 by the end of 2020, indicative of reduced efficiency in employing fixed assets during that period. However, starting in early 2021, there is a marked improvement as the ratio rises steadily to a peak near 4.99 in mid-2022 and remains relatively stable with slight fluctuations toward the end of the data range, gradually tapering to about 4.12 by mid-2025. This pattern suggests recovery and strengthening in fixed asset utilization efficiency after the downturn.

Net Fixed Asset Turnover (including operating lease, right-of-use asset)

This adjusted turnover ratio, which incorporates operating leases and right-of-use assets, follows a somewhat similar but less volatile trajectory. It declines from 1.83 to around 1.61 between late 2019 and late 2020, reflecting a drop in asset use efficiency during this interval. Subsequently, the ratio improves steadily, reaching a high of about 2.30 in mid-2023, before gradually decreasing toward the end of the observed period down to approximately 1.99. The inclusion of leased assets yields a lower turnover ratio overall, highlighting a broader asset base considered in this measure.

Total Asset Turnover

The total asset turnover ratio shows a similar initial decline from 0.97 to roughly 0.77 by late 2020, indicating reduced effectiveness in generating sales from total assets during this phase. From early 2021 onward, the ratio experiences a consistent upward trend, peaking around 1.26 in early 2024. Thereafter, it slightly decreases but remains above 1.0, finishing near 1.09 by mid-2025. This trend reflects an overall improvement in asset efficiency after the initial downturn, demonstrating recovery in the company's ability to leverage its comprehensive asset base for revenue generation.

Equity Turnover

No data is available for equity turnover throughout the periods examined; hence, no analysis can be rendered for this metric.

In summary, the company experienced a notable dip in asset utilization efficiency around 2020, likely due to external factors impacting operational performance. Subsequently, there is evidence of progressive recovery and strengthening efficiency in using both fixed and total assets. The turnover ratios reach their peaks between 2022 and early 2024 before showing minor declines, although remaining above pre-2021 levels in most cases. These patterns reflect an adaptive operational strategy and improved asset management over the medium term.

Net Revenues Trend

The net revenues exhibit a noticeable decline from the end of 2019 through mid-2020, with figures dropping from approximately 7.10 billion to a low of 4.22 billion US dollars. This period marks a significant reduction, likely reflecting external challenges impacting business operations. Following this trough, there is a clear recovery trend starting in late 2020, with revenues progressively increasing to exceed pre-decline levels by early 2022, peaking around 9.42 billion US dollars. Revenue figures then display some fluctuations but generally maintain a level above 8.7 billion US dollars, with slight periodic declines occurring mostly in 2024 before rebounding again towards the latter quarters.

Property, Plant, and Equipment (PP&E), Net

The net value of property, plant, and equipment remains relatively stable with minor decreases in the early quarters of 2020, moving from about 6.39 billion to 6.18 billion US dollars. Starting in 2021, there is a consistent upward trend in PP&E investment, with values rising steadily each quarter. This upward trajectory continues through 2024 and into 2025, reaching close to 8.89 billion US dollars by mid-2025, indicating ongoing capital expenditure and asset accumulation over the period.

Net Fixed Asset Turnover Ratio

This ratio, which measures revenues generated per unit of net fixed assets, shows a decline during the initial period of the dataset, falling from 4.22 to a low of 3.75 by the end of 2020. This decrease aligns with the drop in revenues and relatively steady asset base during the challenging quarters. However, from early 2021 onward, the ratio improves markedly, peaking near 4.99 in mid-2022, implying improved efficiency in generating revenue from fixed assets. After this peak, the ratio experiences a gradual decline throughout 2023 and 2024, dropping below 4.20 by mid-2025, suggesting that revenue growth did not keep pace with the increase in fixed asset investments during this phase.

Overall Insights

The financial data indicate a significant impact at the start of 2020 with falling revenues and a steady asset base leading to reduced asset turnover efficiency. A recovery period follows with revenue growth outpacing fixed asset additions initially, reflecting enhanced operational efficiency and possibly favorable market conditions. In later periods, although investments in property, plant, and equipment continue to grow, revenue growth is comparatively slower, which results in a declining fixed asset turnover ratio. This pattern may indicate a shift toward expansion or long-term capital projects that have not yet fully translated to increased revenue efficiency. Monitoring the balance between asset growth and revenue generation will be essential for assessing future operational productivity.

The financial data reveals several notable trends across the analyzed periods.

Net Revenues

Net revenues exhibited fluctuations over the periods, with an initial decline observed early on, followed by a recovery and general upward trend. Starting from a high point, revenues dropped significantly in the earlier quarters but showed consistent growth afterward, peaking around the end of 2023. Despite some variability, the overall trajectory indicates a gradual increase in net revenues, with minor declines in certain latest quarters.

Property, Plant and Equipment, Net

The net value of property, plant and equipment, inclusive of operating lease right-of-use assets, generally increased throughout the periods. There was a slight decrease in the early phases, but this was followed by a steady upward movement from approximately 2021 onward. The consistent growth suggests ongoing investment or capitalization in fixed assets, culminating in significantly higher asset values by the end of the covered timeline.

Net Fixed Asset Turnover Ratio

This ratio, reflecting the efficiency of asset use in generating revenues, demonstrated variability with a general initial decline. Early in the timeline, the ratio decreased to its lowest point, indicating less effective asset utilization. Subsequently, it improved markedly, reaching a peak between late 2021 and early 2023, signifying enhanced efficiency. However, a downward trend resumed thereafter, albeit remaining at relatively strong levels compared to the earliest data points.

Overall, the data suggests a recovery and strengthening phase after initial setbacks, with strategic asset growth and improved asset turnover supporting revenue expansion. The slight reduction in asset turnover in the latest quarters may warrant monitoring to ensure sustained operational efficiency.

The financial data reveals several notable trends regarding the company's operational efficiency and asset utilization over the analyzed periods.

Net revenues

Net revenues experienced a significant decline during early 2020, reaching a low in the quarter ending June 28, 2020, reflective of external challenges impacting the business environment. Following this trough, revenues exhibited a recovery trend, with consistent growth extending through late 2023, peaking in the quarter ending October 1, 2023. However, a slight decline was observed in the first quarter of 2024, followed by fluctuating but generally stable revenue figures through mid-2025.

Total assets

Total assets fluctuated modestly throughout the period, with an initial decrease observed post-2019 into early 2021. From mid-2021 onward, total assets showed a gradual upward trajectory, with some volatility. The asset base reached higher levels towards the end of the timeline, culminating in a peak in the quarter ending June 29, 2025. These fluctuations suggest ongoing investment and asset management activities throughout the period.

Total asset turnover

The total asset turnover ratio started just below 1 in late 2019 and remained relatively stable before declining to its lowest point in late 2020. After this, a steady improvement was observed, with ratios exceeding 1 from early 2022 onwards, indicating enhanced efficiency in using assets to generate revenue. The ratio peaked in early 2024 and then showed a mild declining trend, yet it remained above 1, suggesting sustained efficiency gains compared to earlier periods.

Overall, the data indicates a recovery and improvement phase following the downturn in early 2020, with revenue growth supported by more efficient asset utilization. The company appeared to navigate asset base management prudently, balancing growth and operational efficiency within the observed timeframe.

Net Revenues Trend

The net revenues exhibit significant volatility over the observed periods. Initially, there is a sharp decline from approximately 7.1 billion in late 2019 to around 4.2 billion by mid-2020, indicating a substantial revenue contraction. This is followed by a recovery phase, with revenues rising steadily to surpass 9 billion by late 2023. However, after reaching a peak near 9.4 billion, revenues display a modest decrease and fluctuation, ending slightly below 9.5 billion by mid-2025. Overall, the pattern suggests resilience and gradual growth after an initial disturbance.

Shareholders’ Deficit Analysis

The shareholders’ deficit shows a consistently negative value throughout the periods, indicating a deficit position. The deficit worsens from about -6.8 billion at the end of 2019, reaching a peak negative value close to -8.7 billion around early 2022. Subsequent data reveal some improvement with the deficit reducing to approximately -7.9 billion by mid-2024. However, the deficit remains significantly negative, fluctuating but not showing a clear trend toward elimination. This persistent negative equity may highlight ongoing financial challenges or specific accounting treatments impacting shareholder funds.

Equity Turnover

Data for the equity turnover ratio is not available, hence no analysis can be provided regarding asset efficiency or the turnover of equity during the periods under review.

Summary Insights

The financial data portrays a company recovering from a sharp downturn in revenues around early 2020, followed by a period of growth and stabilization. Despite revenue improvements, the shareholders’ deficit remains substantial and negative, indicating potential financial structure issues that may merit closer examination. The absence of equity turnover data limits a full assessment of operational efficiency or asset utilization during this timeframe.