Starbucks Corp. (NASDAQ:SBUX)

Net fixed asset turnover

The net fixed asset turnover ratio exhibited a general fluctuation over the observed periods. It started at 4.12 in 2019, declined to 3.77 in 2020, then increased to a peak of 4.92 in 2022, followed by a slight decrease to 4.87 in 2023 and a more noticeable decline to 4.17 in 2024. This pattern suggests variability in the efficiency of using fixed assets to generate sales, with a significant dip during 2020, likely influenced by adverse conditions, and a subsequent recovery until 2022, before a reduction in asset efficiency in the most recent year.

Net fixed asset turnover (including operating lease, right-of-use asset)

This ratio experienced a sharp decline from 4.12 in 2019 to 1.64 in 2020, followed by a steady but moderate recovery through the subsequent years, rising to 1.99 in 2021, 2.21 in 2022, and 2.28 in 2023. In 2024, the ratio decreased slightly to 2.02. The significant drop in 2020 may be related to changes in accounting for operating leases or business disruptions. Although there is a recovering trend, the inclusion of right-of-use assets shows a substantially lower turnover compared to the net fixed asset turnover without these assets, indicating that these leased assets might be less efficiently utilized or recognized differently.

Total asset turnover

The total asset turnover ratio declined sharply from 1.38 in 2019 to 0.80 in 2020, reflecting a major decrease in asset efficiency during that year. After 2020, the ratio showed a gradual recovery: increasing to 0.93 in 2021, rising further to 1.15 in 2022, peaking slightly at 1.22 in 2023, before falling back to 1.15 in 2024. This trajectory suggests that while asset utilization faced significant challenges in 2020, there was a meaningful rebound in subsequent years, yet the 2024 value indicates a potential plateau or slight decline in efficiency compared to the previous year.

Equity turnover

No data is available for equity turnover over the observed periods, precluding any analysis or trend identification for this ratio.

Net Revenues

Net revenues experienced a decline from 26,508,600 thousand US dollars in 2019 to 23,518,000 thousand US dollars in 2020. This was followed by a steady recovery and growth trend, increasing to 29,060,600 thousand US dollars in 2021, then further to 32,250,300 thousand US dollars in 2022, and continuing upward to 35,975,600 thousand US dollars in 2023. The most recent figure in 2024 shows a slight increase to 36,176,200 thousand US dollars, indicating stable revenue growth in the last three periods after the initial downturn.

Property, Plant and Equipment, Net

The net value of property, plant, and equipment demonstrated a gradual upward trend after a slight decline from 6,431,700 thousand US dollars in 2019 to 6,241,400 thousand US dollars in 2020. From 2021 onward, the figure rose consistently, reaching 6,369,500 thousand US dollars in 2021, 6,560,500 thousand US dollars in 2022, and showing more pronounced growth in 2023 and 2024 with values of 7,387,100 thousand US dollars and 8,665,500 thousand US dollars respectively. This suggests increased investment in fixed assets in the more recent years.

Net Fixed Asset Turnover

The net fixed asset turnover ratio, indicating how efficiently fixed assets are being used to generate revenue, declined from 4.12 in 2019 to 3.77 in 2020. This ratio then showed improvement, rising sharply to 4.56 in 2021 and peaking at 4.92 in 2022. However, in 2023, there was a slight decrease to 4.87, followed by a more noticeable reduction to 4.17 in 2024. Although asset utilization efficiency improved significantly after 2020, the decline in the last period may warrant further investigation.

Net Revenues

Net revenues demonstrated a decline from 26,508,600 thousand US dollars in 2019 to 23,518,000 thousand US dollars in 2020, indicating a downward trend during that period. However, from 2020 onwards, net revenues consistently increased each year, reaching 36,176,200 thousand US dollars in 2024. This signifies a strong recovery and growth trajectory after the initial decline.

Property, Plant and Equipment, Net

The net value of property, plant, and equipment, including operating lease right-of-use assets, showed a marked increase from 6,431,700 thousand US dollars in 2019 to 14,375,500 thousand US dollars in 2020. This value remained relatively stable in 2021 and 2022 but resumed growth in 2023 and 2024, reaching 17,951,700 thousand US dollars by 2024. This trend suggests significant investment or capitalization of lease assets starting in 2020, followed by consistent asset expansion in recent years.

Net Fixed Asset Turnover

The net fixed asset turnover ratio decreased sharply from 4.12 in 2019 to 1.64 in 2020, reflecting a reduction in efficiency or utilization of fixed assets relative to net revenues during that year. From 2020 onwards, the ratio improved gradually to 2.02 in 2024, indicating a partial recovery in asset utilization efficiency, though the ratio did not return to the levels observed in 2019.

Overall Insights

The data reveals an initial impact in 2020 characterized by decreased revenues and asset turnover alongside a substantial increase in net fixed assets, possibly due to changes in asset accounting or investment activity. Subsequent years show recovery and growth in revenues coupled with asset base expansion but accompanied by subdued fixed asset turnover efficiency compared to the 2019 baseline. This pattern suggests that while the company is growing and investing in its asset base, the efficiency with which the assets generate revenue has not fully recovered to pre-2020 levels, indicating potential areas for operational improvement.

The analysis of the financial data reveals several key trends over the reviewed periods.

Net Revenues

Net revenues demonstrate a general upward trajectory from 2019 through 2024, increasing from approximately 26.5 billion USD to over 36.1 billion USD. There was a temporary decline in 2020, likely related to external economic factors, but revenues rebounded strongly in subsequent years, indicating recovery and growth momentum.

Total Assets

Total assets showed notable volatility. Starting at about 19.2 billion USD in 2019, assets surged to nearly 29.4 billion USD in 2020 and further increased slightly in 2021. However, a decline occurred in 2022, followed by a gradual recovery in 2023 and 2024, reaching approximately 31.3 billion USD. This pattern suggests periods of asset expansion possibly related to investment or acquisition activities, alongside some contraction or revaluation.

Total Asset Turnover

Total asset turnover ratio declined sharply from 1.38 in 2019 to 0.80 in 2020, reflecting reduced efficiency in utilizing assets to generate revenues during that year. Thereafter, the ratio gradually improved, reaching 1.15 in 2024, though it did not fully return to the initial 2019 level. This indicates an ongoing effort to enhance asset utilization efficiency despite relatively higher asset base levels.

In summary, revenue growth has been strong over the longer term with a dip in 2020, total assets experienced significant fluctuations, and asset turnover efficiency weakened at first but showed signs of improvement toward the end of the period. These trends suggest strategic adjustments to asset management in response to changing market conditions, alongside overall revenue expansion.

The financial data reveals several notable trends over the analyzed periods, focusing on net revenues and shareholders’ deficit figures.

Net Revenues

Net revenues show a general upward trend from 2019 through 2024, starting at approximately $26.5 billion in September 2019 and rising to about $36.2 billion in September 2024.

There was a decline observed in 2020, with revenues dropping to $23.5 billion, likely reflecting external challenges during that period. However, revenues rebounded strongly in subsequent years, increasing steadily through 2021 ($29.1 billion), 2022 ($32.3 billion), 2023 ($36.0 billion), and slightly growing in 2024 ($36.2 billion).

Shareholders’ Deficit

The shareholders’ deficit figures indicate persistent negative equity throughout the period, with deficits ranging between approximately $5.3 billion and $8.7 billion.

In 2019, the deficit stood at about $6.2 billion, increasing in 2020 to around $7.8 billion. The deficit improved notably in 2021, decreasing to roughly $5.3 billion, but worsened again in 2022, reaching nearly $8.7 billion.

In the last two periods, the deficit decreased moderately to about $8.0 billion in 2023 and $7.4 billion in 2024, indicating some recovery in equity position but still reflecting significant negative shareholders' equity.

Equity Turnover

No data was provided for equity turnover across the analyzed periods, limiting the ability to assess operational efficiency concerning equity utilization.

Overall, the revenue trend demonstrates robust recovery and growth following a dip in 2020, while the shareholders’ deficit figures suggest ongoing challenges in equity levels, with fluctuations that suggest volatility but some improvement by the latest period. The absence of equity turnover data restricts a fuller evaluation of asset efficiency related to equity.