Starbucks Corp. (NASDAQ:SBUX)

The financial data over the six-year period reveals significant fluctuations in the profitability metrics of Starbucks Corp. The analysis focuses on net earnings, earnings before tax (EBT), earnings before interest and tax (EBIT), and earnings before interest, tax, depreciation, and amortization (EBITDA).

Net Earnings Attributable

Net earnings demonstrated considerable volatility. After a modest value of approximately 928 million US dollars in 2020, there was a marked increase in 2021 to around 4.2 billion US dollars. However, this was followed by a decline in 2022 to about 3.28 billion and a slight recovery in 2023 with 4.12 billion US dollars. The subsequent years show another downward trend, dropping to 3.76 billion in 2024 and further to 1.86 billion in 2025, indicating a potential challenge in sustaining high net profitability.

Earnings Before Tax (EBT)

EBT followed a pattern somewhat similar to net earnings but with overall higher absolute figures. After 1.16 billion US dollars in 2020, EBT rose sharply to 5.36 billion US dollars in 2021, then declined to 4.23 billion in 2022. A resurgence occurred in 2023, reaching 5.4 billion US dollars. Subsequently, a decline ensued, to 5 billion in 2024 and more pronounced down to 2.5 billion in 2025. This pattern reflects volatility with peaks in the odd years (2021, 2023) and troughs in even years following those peaks.

Earnings Before Interest and Tax (EBIT)

EBIT mirrored the trends observed in EBT, with slight variations in magnitude. From around 1.6 billion US dollars in 2020, it surged to 5.83 billion in 2021. Subsequently, EBIT decreased to 4.71 billion in 2022, then rose again to 5.95 billion in 2023, before gradually declining to 5.53 billion in 2024 and 3.05 billion in 2025. The data indicates recurring fluctuations in operational profitability, aligning with the broader earnings trends.

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)

EBITDA figures were consistently the highest among the profitability measures and followed a pattern similar to other metrics. Starting from 3.1 billion US dollars in 2020, EBITDA increased to 7.35 billion in 2021, then declined to 6.24 billion in 2022. It peaked again at 7.4 billion in 2023 before decreasing to 7.12 billion in 2024 and dipping sharply to 4.82 billion in 2025. This pattern suggests operational cash flow strength in 2021 and 2023, with signs of weakening in the most recent year.

Overall, the data shows cyclical fluctuations in earnings measures with peaks in 2021 and 2023, followed by declines in subsequent years. The recent downward trend in 2025 across all key profitability indicators suggests emerging challenges in maintaining the previous levels of financial performance. Further analysis may be required to understand underlying causes, including market dynamics or internal operational factors.

The analysis of the financial indicators over the reported periods reveals notable fluctuations in both enterprise value and EBITDA, accompanied by shifts in the valuation multiple represented by the EV/EBITDA ratio.

Enterprise Value (EV)

The enterprise value exhibited variability throughout the years. It initially increased from approximately $121 billion in 2020 to a peak close to $138 billion in 2021. Subsequently, it declined overall, reaching around $109 billion by 2025. This downward trend after 2021 suggests changes in market perception, asset valuation, or capital structure adjustments.

Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA)

EBITDA showed substantial fluctuations as well. There was a marked increase from about $3.1 billion in 2020 to over $7.3 billion in 2021. This figure then decreased to roughly $4.8 billion by 2025 after some intermittent rises in the intermediate years. The rise in 2021 may indicate operational improvements or recovery effects, whereas the declining trend afterward could point to margin compression, cost pressures, or reduced operational efficiency.

EV/EBITDA Ratio

The valuation multiple EV/EBITDA decreased significantly from nearly 39 in 2020 to a range between approximately 17 and 23 in subsequent years. This drop from a relatively high multiple indicates a recalibration of market expectations relative to earnings. A lower multiple generally reflects either increased EBITDA relative to valuation or a more conservative market stance. The ratio hit its lowest values between 2021 and 2024, suggesting a period of more favorable earnings relative to enterprise value before rising again toward 2025.

Overall, the data denote a period of peak valuation and operational earnings in 2021, followed by declines in both metrics and a stabilization at lower valuation multiples. This pattern may point to changing business conditions, competitive dynamics, or macroeconomic factors affecting enterprise worth and profitability.