Starbucks Corp. (NASDAQ:SBUX)

The analysis of the financial ratios over the observed quarters reveals several notable trends regarding asset utilization and operational efficiency.

Net Fixed Asset Turnover

This ratio, indicating the efficiency in using fixed assets to generate sales, shows an initial increase reaching a peak of 4.99 in early 2023. Subsequently, it demonstrates a gradual decline, ending around 4.12 by mid-2025. This pattern suggests an improvement in asset utilization efficiency through 2022 and early 2023, followed by a slight reduction in subsequent periods.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

Including operating lease assets results in lower turnover ratios compared to the standard net fixed asset turnover. The ratio drops sharply from approximately 4.12 in late 2019 to around 1.61 in early 2020, reflecting the impact of the lease accounting change or increased emphasis on right-of-use assets. From 2020 onward, the ratio exhibits a steady upward trend, increasing to about 2.30 by mid-2023. However, this ratio gradually decreases again toward 1.99 by mid-2025. This behavior indicates an initial adjustment phase followed by improved lease asset utilization, and then a modest decline subsequently.

Total Asset Turnover

This ratio, demonstrating the company's ability to generate sales from its total assets, experiences a decline from 1.38 in late 2019 to a low of approximately 0.77 in early 2020. Thereafter, a recovery period is observed, with steady growth culminating in around 1.26 in early 2024. Toward mid to late 2025, a slight decrease to about 1.09 is apparent. This sequence highlights the impact of external or internal challenges in 2020, followed by recovery and moderate stabilization with some downward movement in the latter periods.

Equity Turnover

Data concerning this ratio was not available for analysis.

In summary, the ratios collectively indicate a significant disruption around early 2020 likely linked to broader economic or company-specific factors that impacted asset utilization. Following this, there is a consistent recovery phase in all turnover ratios analyzed, peaking between 2022 and early 2024. More recently, a slight decline or stabilization at levels below the pre-2020 peaks is evident, suggesting cautious operational conditions or diminishing efficiency gains.

The financial data reveals several noteworthy trends across the examined quarters. Net revenues exhibit fluctuations influenced by external and internal factors. There was a noticeable dip in net revenues during early 2020, likely reflective of broader market challenges, followed by a recovery and general upward trend that extends into 2023. This recovery is signified by steady revenue growth, reaching new highs by late 2023. However, a decline is observed starting in early 2024, with net revenues showing some volatility and a slight downward adjustment by mid-2025.

Regarding the property, plant, and equipment (net), a consistent upward trajectory is evident throughout the period. This steady increase suggests ongoing investment in fixed assets over time. The pace of asset growth accelerates noticeably as the data extends into 2024 and 2025, highlighting expanded capital expenditure or asset acquisition activities.

The net fixed asset turnover ratio, which measures efficiency in utilizing fixed assets to generate revenue, displays a distinct pattern. Early in the period considered, the ratio climbs steadily, implying improved efficiency. It peaks in the early 2020s, indicating enhanced asset utilization. However, from approximately 2023 onwards, the ratio begins a gradual decline, suggesting that while asset base continues to grow, revenue generation relative to these assets is becoming less efficient. This corresponds with the observed softening of net revenues towards 2024 and 2025, implying that the increase in fixed assets is not fully translating into proportional revenue growth during this later period.

Net Revenues

Experienced a decline during early 2020, followed by recovery and growth peaking in late 2023. A modest downturn and variability are noted through mid-2025.

Property, Plant and Equipment (net)

Consistently increased over time with a more pronounced acceleration from 2024 onward, indicating sustained capital investments.

Net Fixed Asset Turnover

Improved through early periods, reaching highest efficiency in the early 2020s. Subsequent gradual decline from 2023, showing less efficient use of assets amid growing asset base.

The analysis of the quarterly financial data reveals several notable trends across the reviewed periods.

Net Revenues

Net revenues exhibit noticeable fluctuations over the timeframe. Initial values around the end of 2018 were approximately $6.63 billion, with moderate changes through 2019. A significant decline occurred in early 2020, reaching a low around $4.22 billion in June 2020, likely corresponding to external economic disruptions.

Following this trough, revenues generally demonstrated a recovery trend, surpassing pre-decline levels in late 2021 with values exceeding $8 billion. Revenues maintained an overall upward trajectory into 2023, peaking near $9.37 billion by the end of 2023. Early 2024 showed some variability with figures fluctuating between $8.56 billion and $9.46 billion, indicating a period of relative stabilization at elevated revenue levels.

Property, Plant and Equipment, Net

The net value of property, plant, and equipment, including operating leases and right-of-use assets, showed a marked increase starting in late 2019, jumping from approximately $6 billion to over $14 billion. This sharp increase suggests significant capital investment or asset reclassification during that period.

After this initial jump, the asset base grew steadily but at a slower pace, reaching nearly $18.5 billion by mid-2025. This gradual growth indicates continued investment or asset acquisitions, contributing to an expanding capital base.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio data is incomplete for early periods but available from mid-2019 onwards. Initially, the ratio decreased sharply from 4.12 to values near 1.6 in 2020, implying reduced efficiency or asset utilization during the period of capital expansion and revenue decline.

Subsequently, the turnover ratio showed a consistent recovery trend, increasing gradually to over 2.3 by late 2023, implying improved operational efficiency in utilizing assets to generate revenues. Early 2024 data suggests a slight decline or stabilization around 2.0, indicating a potential plateau in asset turnover efficiency.

Overall, the company experienced a phase of substantial growth in capital assets accompanied by an initial decline in revenue and asset turnover efficiency, followed by a recovery and improvement in both revenue generation and asset utilization over the later periods.

The financial data reveal several noteworthy patterns across the presented quarters. Net revenues exhibit fluctuations with an overall upward trajectory, despite some periods of decline. Specifically, net revenues initially decrease from 6,632,700 thousand USD at the end of 2018 to 6,305,900 thousand USD by the first quarter of 2019, followed by various increases and decreases. A substantial dip occurs around the second and third quarters of 2020, coinciding with global economic disruptions. Subsequently, revenues progressively recover and trend upward, peaking in the fourth quarter of 2023 at 9,425,300 thousand USD, before showing minor decreases afterwards.

Total assets display a general growth trend but with notable volatility. Starting at 19,981,300 thousand USD at the end of 2018, assets initially decrease to 17,641,900 thousand USD early in 2019, then significantly increase, reaching a substantial peak of 31,392,600 thousand USD by the fourth quarter of 2021. Following this, total assets experience a decline and some fluctuation, with values oscillating between approximately 27,978,400 thousand USD and 33,649,200 thousand USD over subsequent quarters. This variation suggests active asset management possibly in response to operational demands or strategic investments.

Total asset turnover, available from mid-2019 onwards, indicates efficiency changes in asset utilization over time. Initially recorded at 1.38 in the second quarter of 2019, it declines sharply to 0.77 by the fourth quarter of 2019 and remains below 1 for several quarters through 2020, reflecting reduced efficiency in generating revenues from assets during this period. From early 2021, a consistent upward trend is observable, with turnover ratios rising from 0.84 to a peak of 1.26 in the first quarter of 2024. This suggests improving operational efficiency and better revenue generation relative to asset base. A slight tapering is seen towards the later periods, with turnover ratios marginally declining but remaining above 1.0, indicating sustained effective asset use.

Overall, the data indicate that while the company experienced some periods of downturn, particularly around early to mid-2020, it demonstrated resilience with recovering net revenues and improved asset utilization efficiency. The growth in total assets alongside rising asset turnover towards recent periods suggests strategic adjustments to optimize asset deployment and revenue generation.

Net Revenues

Exhibit fluctuations with a notable decline in the first half of 2020 and a strong recovery afterwards, reaching peak values by late 2023.

Total Assets

Increase substantially over time with volatility indicative of asset management activity and investment cycles.

Total Asset Turnover

Decline observed during 2019-2020, followed by progressive improvement peaking around early 2024, signaling enhanced operational efficiency.

The analysis of the quarterly financial data reveals several notable trends and shifts over the observed periods.

Net Revenues

Net revenues demonstrated a fluctuating pattern with an overall upward trajectory despite some periods of decline. Initially, revenues showed moderate growth from approximately 6.63 billion USD in late 2018 to around 7.1 billion USD by the end of 2019. A significant decrease occurred in early 2020, with revenues dropping to about 4.22 billion USD in the second quarter of 2020, likely reflecting external disruptions. Following this low point, a recovery phase is evident, with revenues rising steadily to a peak near 9.4 billion USD in late 2023. Some volatility persisted into early 2025, where revenues experienced minor declines but mostly maintained strong levels above 8.7 billion USD.

Shareholders’ Deficit

The shareholders' deficit exhibited a generally negative and increasing trend in absolute terms throughout the periods. Starting at a deficit of roughly -2.88 billion USD at the end of 2018, it widened significantly by 2020, reaching more than -8.6 billion USD in early 2020 and continuing to deteriorate with occasional short-term improvements. The deficit peaked near -8.7 billion USD in early 2022 and then oscillated between -7.4 billion and -8.5 billion USD in subsequent quarters. In the most recent quarters of 2024 and first half of 2025, the deficit moderated slightly but remained sizable, fluctuating between approximately -7.4 billion and -7.7 billion USD, indicating persistent negative equity situations.

Equity Turnover

No data was recorded or available for equity turnover ratios during the presented periods, hence no trend or analysis is possible for this metric.

Overall, the financial data indicates a resilience in revenue generation despite external shocks impacting quarterly performance, especially in 2020. However, the continuous and substantial shareholders' deficit suggests ongoing challenges in capital structure and possibly sustained losses or equity reductions over time. The absence of equity turnover data limits assessment of efficiency in utilizing equity to generate revenues.