Starbucks Corp. (NASDAQ:SBUX)

The financial data displays notable variations in profitability margins and returns over a series of quarterly periods. Several distinct trends can be observed across the gross profit margin, operating profit margin, net profit margin, and return on assets (ROA).

Gross Profit Margin

The gross profit margin initially shows a decline from 28.35% early in the series to a low of 20.94% by the end of 2019 and early 2020. This decline aligns with a period marked by significant challenges, likely external factors impacting cost or revenue structures. Following this trough, the margin stabilizes and recovers somewhat to the range of 26-28% during 2021 and remains relatively stable through 2022 and into early 2023. However, a gradual downward trend resumes toward the latter part of the data, reaching approximately 24.97% by the end of the series, indicating some pressure on gross profitability.

Operating Profit Margin

Operating profit margin follows a similar pattern, with an initial strong performance near 15.88% declining sharply to around 5.42% in early 2020. This drop indicates substantial impacts on operational efficiency or increased expenses. A recovery phase begins in mid-2020, with margins improving steadily to around 16.64% in mid-2023. The margin then experiences a slight decrease toward the end of the series, finishing near 12.51%. The trend suggests operational disruptions followed by a significant recovery and subsequent modest decline.

Net Profit Margin

The net profit margin exhibits a comparable trajectory, beginning near 13.81% before a steep decline to a low of roughly 2.87% at the beginning of 2020, indicating a major hit to overall profitability. There is a pronounced recovery through 2021, peaking at approximately 14.47%, followed by a gradual decline to about 8.61% by the latest period. The net margin's volatility highlights sensitivity to external and operational factors but also demonstrates resilience during recovery phases.

Return on Assets (ROA)

ROA starts at a high level of approximately 18.73% but declines significantly to 2.22% by early 2020, implying a severe reduction in asset utilization efficiency during this period. A recovery ensues with ROA climbing back above 14% by mid-2023. Similar to other margins, ROA contracts somewhat toward the end of the data, reaching near 9.89%. This metric mirrors the general profitability patterns and suggests that asset returns were strongly affected during the downturn but experienced a moderate rebound.

Overall, the observed data points to a period of financial stress centered around early 2020, likely attributable to external disruptions impacting profit margins and asset returns. Subsequent quarters demonstrate a marked recovery across all profitability metrics, with gross margin, operating margin, net margin, and ROA improving substantially. The latter part of the timeline shows a slight weakening trend, which may reflect emerging pressures or challenges in sustaining peak profitability levels. No data was available for return on equity (ROE), limiting analysis on shareholder returns.

The financial data reveals several key trends in the quarterly performance over the observed periods. Net revenues demonstrate fluctuations, with a notable decline during the early 2020 quarters, corresponding to the global economic disruptions experienced in that timeframe. Specifically, net revenues dropped from a high of approximately 7.1 billion US dollars in late 2019 to around 4.2 billion US dollars by mid-2020. Subsequently, there is a recovery trend that brings revenues back to values approaching or exceeding pre-decline levels in the later quarters.

Gross profit follows a similar trend, showing significant contraction during the mid-2020 quarters. The gross profit decreased sharply from over 2 billion US dollars at the end of 2019 to just above 200 million US dollars in the quarter ending June 28, 2020. Afterwards, gross profit figures gradually increase and stabilize around 2 to 2.7 billion US dollars in the most recent quarters, indicating restoration of profitability and operational efficiency.

The gross profit margin percentage, available starting from the period ending June 30, 2019, shows an initial range in the high 20s percentage, specifically hovering around 28%. However, the margin dips significantly during the mid-2020 quarters, falling to a low of approximately 20.94% before recovering and stabilizing in the range of approximately 25% to 28% thereafter. The most recent figures indicate margins slightly below peak values, suggesting some pressure on cost structure or pricing, but still maintaining a healthy gross profitability relative to revenues.

Net Revenues

Exhibited a significant decline beginning in early 2020, bottoming out mid-year, followed by a steady recovery trend to levels matching or surpassing the pre-pandemic period.

Gross Profit

Declined sharply in conjunction with revenues during the economic downturn in mid-2020, with a strong recovery thereafter, returning to previous high ranges by late 2021 and maintaining stability through the last reported periods.

Gross Profit Margin

Margins dropped from high 20% levels in 2019 to about 21% during the 2020 low points, recovering to fluctuating levels mostly around 26% to 28% since late 2021. The recent trend shows a slight decrease toward the low 25% range, indicating potential margin pressure.

Overall, the data shows resilience with a significant impact phase during the mid-2020 period, followed by a marked recovery in both revenues and profitability. The gross profit margin's partial erosion in the most recent quarters may warrant closer analysis to identify cost drivers or competitive pressures affecting profitability.

The quarterly financial data reveals notable fluctuations and trends across key performance indicators over the given periods.

Operating Income (Loss)

Operating income demonstrates significant variability, with peaks and troughs indicating periods of both strong profitability and notable losses. Initially, the operating income remained robust, exceeding $1 billion in several quarters up to late 2019. However, a sharp decline occurred in early 2020, with a negative operating income recorded in the quarter ending June 28, 2020, reflecting a loss of approximately $704 million. Following this loss, operating income rebounded, recovering to positive figures in subsequent quarters and reaching levels comparable to earlier highs by mid-2021. Post-2021, there is a fluctuating but generally positive trend, with a peak in operating income around the third quarter of 2023, followed by declines in late 2023 and early 2024.

Net Revenues

Net revenues exhibit a cyclical pattern with an overall upward trend after an initial disruption. Revenues remained relatively stable around the $6.3 billion to $7.2 billion range until the first quarter of 2020, when a substantial decline to approximately $4.2 billion was recorded, aligning with the operating loss period. After this low point, revenues show a consistent and steady recovery, reaching above $9 billion in some of the quarters between 2022 and 2024. Despite a few fluctuations, the general direction suggests resilience and growth in revenue generation, with values exceeding pre-2020 levels towards the later periods.

Operating Profit Margin (%)

Operating profit margin data begins in mid-2019 and shows a downward spike corresponding to the early 2020 period of financial stress. Margins declined from approximately 15-16% in late 2019 to values as low as around 5-7% during early and mid-2020 quarters. After this trough, margins recovered steadily, returning to a range of about 14-16% from mid-2021 onwards. The margins show modest fluctuations but maintain a healthy percentage indicating improved operational efficiency and profit generation in later periods compared to the early 2020 downturn.

Overall, the analysis reflects a period significantly impacted by external challenges around early 2020, as evidenced by declines in both operating income and net revenues, alongside compressed operating margins. Recovery trends are prominent from mid-2020 onward, demonstrating the company’s capacity to regain profitability and revenue growth. Notwithstanding some variability, the general trajectory in recent quarters points to strengthening financial performance and operational profitability.

The data reveals several notable financial trends over the periods analyzed. Net revenues display a cyclical pattern with fluctuations corresponding to seasonal and external factors. Initially, there is a growth trend from the end of 2018 through the end of 2019, peaking at over 7 billion US dollars. This is followed by a significant decline in the first half of 2020, coinciding with broader economic disruptions, with revenues dropping to approximately 4.2 billion US dollars. Subsequently, revenues demonstrate a recovery trend from the third quarter of 2020 onward, nearing or surpassing previous highs and reaching around 9.4 billion US dollars by the end of 2024. However, the most recent quarters indicate some volatility with revenues slightly decreasing again.

Net earnings attributable to the company show considerable volatility and sensitivity to external conditions. The earnings fluctuated between positive and negative values over the analyzed timeframe. A marked decline occurs in the second quarter of 2020, coinciding with the revenue drop, with net earnings turning negative at -678.4 million US dollars. This period appears to represent a significant financial challenge. After this trough, net earnings recover substantially with a peak in the first quarter of 2022, reaching 1.76 billion US dollars. From 2022 onward, earnings generally remain positive but show some fluctuations, with a trend toward gradual decrease in more recent quarters, ending at 384.2 million US dollars in the last reported quarter.

Net profit margin percentages are available only from late 2019 and show a downward trend during the pandemic impact period in early 2020, dropping from approximately 13.8% to a low of under 3%. A recovery phase follows, with margins improving consistently through 2021 and early 2022, reaching peaks near 14.5%. In the later periods, margins exhibit a gradual decline, falling below 9% by early 2025, indicating increasing pressures on profitability despite recovering revenues.

Revenue Trends

Growth through 2019, sharp decline in early 2020, followed by recovery and approaching all-time highs by late 2024, with some recent volatility.

Net Earnings Volatility

Significant fluctuations with negative earnings during mid-2020. Post-crisis recovery with peaks in early 2022, followed by a gradual decline in earnings levels.

Profitability Margins

Profit margins dropped sharply during early 2020 economic challenges, recovered to strong levels in 2021-2022, and experienced a steady decline thereafter through early 2025.

Overall, the financial data indicates resilience in revenue generation and recovery in earnings post-2020 downturn, though profitability margins have faced pressure in the more recent periods. This may suggest increased costs or operational challenges affecting net earnings efficiency despite improved top-line performance.

The analysis of the quarterly financial data reveals several key trends over the observed period. Net earnings attributable to the company exhibit notable volatility, with significant fluctuations that likely reflect both operational performance and external factors. Shareholders’ deficit consistently remains negative, indicating ongoing equity challenges. The ROE data is absent, limiting direct assessment of return metrics.

Net Earnings (Loss) Attributable to Starbucks

Net earnings started at approximately $760.6 million in late 2018, before experiencing a decline to $328.4 million by the first quarter of 2020. Following this period, there is a notable loss of $678.4 million in the second quarter of 2020, likely attributable to significant disruptions during that time. A recovery phase is observed afterward, with earnings rebounding to peak at approximately $1.76 billion by early October 2021.

After peaking, net earnings demonstrate some volatility but generally sustain higher levels compared to earlier periods, ranging between approximately $674.5 million and $1.21 billion through the end of 2023. In 2024, there is a decline noted, ending with $384.2 million in the first quarter of 2025, indicating some challenges or transitional phase during the most recent quarter.

Shareholders’ Deficit

The shareholders’ deficit has been persistently negative over the analyzed quarters, reflecting a continuing imbalance where liabilities exceed shareholders’ equity. It started near negative $2.88 billion at the end of 2018 and worsened significantly to around negative $8.6 billion through much of 2019 and 2020, suggesting increased financial leverage or accumulated losses.

From late 2020 onwards, the deficit shows a slight improvement trend, with values ranging between approximately negative $7.99 billion and negative $8.7 billion during 2021 and into 2022. Subsequently, a gradual improvement is visible, declining in absolute terms to about negative $7.44 billion by late 2024.

Despite these improvements, the deficit remains substantial, indicating ongoing concerns related to equity structure or accumulated losses that require attention.

Return on Equity (ROE)

Return on Equity metrics are not provided for the periods analyzed, restricting direct evaluation of profitability relative to shareholder investment. The absence of this data suggests a limitation in measuring how effectively the company is utilizing equity to generate profits.

Overall, the company displays a recovery trajectory in net earnings following a significant downturn in 2020, with fluctuations indicating variable quarterly performance. The persistent shareholders’ deficit suggests underlying equity concerns despite some improvements in recent years. The lack of ROE data constrains a complete assessment of financial efficiency from an equity standpoint.

The financial data reveals several distinct trends over the periods analyzed. Net earnings attributable to the company exhibit significant volatility, with pronounced fluctuations from one quarter to another. Early periods show strong positive earnings, followed by a steep downturn in mid-2020, where net earnings even turned negative, reflecting potential operational challenges or external economic impacts during that timeframe. Subsequent quarters demonstrate a recovery and generally positive earnings, with multiple instances exceeding one million US dollars in thousands, suggesting resilience and potential growth after the downturn.

Total assets present a generally increasing trend with intermittent fluctuations. The asset base shows some contraction in specific periods but recovers and grows overall, moving from approximately 19.98 billion US dollars to over 31.6 billion US dollars towards the later periods. This indicates ongoing investment or asset accumulation, which could support future revenue generation or operational expansion.

The Return on Assets (ROA) percentage is calculated for later periods and unveils a recovery pattern consistent with net earnings. Initial ROA values are elevated, then markedly decline during the quarters corresponding to the net earnings downturn. After reaching a low point, ROA gradually improves, stabilizing around figures above 10 percent, indicating an increasing efficiency in asset utilization to generate earnings over time. However, the trend towards the latest quarter shows a slight decrease, denoting potential challenges in maintaining asset profitability at previous levels.

Net Earnings Analysis

Significant volatility with a notable decline into negative territory in mid-2020; recovery follows, with several quarters exceeding one billion US dollars in earnings, highlighting operational resilience post-adversity.

Total Assets

Overall growth from around 20 billion to over 31 billion US dollars during the period, signifying asset accumulation despite some periodic contractions.

Return on Assets (ROA)

High initial ROA followed by a sharp decline correlating with earnings downturn; gradual recovery and stabilization above 10 percent indicate improved effectiveness in asset use, with slight recent declines warranting observation.

In summary, the data indicates a period of significant operational stress reflected in earnings and profitability, followed by a recovery phase characterized by stabilized profitability and continuous growth in total asset base, suggesting a strategic focus on strengthening the company’s asset portfolio while improving operational efficiency.