Starbucks Corp. (NASDAQ:SBUX)

The analysis of the annual financial data reveals notable fluctuations in key cash flow metrics over the reported periods.

Net Cash Provided by Operating Activities

This metric exhibits significant variability during the timeframe. Initial figures start at 1,597,800 thousand US dollars, then sharply increase to 5,989,100 thousand US dollars in the subsequent period. This is followed by a decline to 4,397,300 thousand US dollars and then a rebound to 6,008,700 thousand US dollars. The following years maintain a relatively high level with 6,095,600 thousand US dollars before decreasing again to 4,747,500 thousand US dollars. Overall, the data suggests oscillations with a general trend of elevated cash flow generation from operations in the more recent periods compared to the initial year.

Free Cash Flow to Equity (FCFE)

This measure starts at 5,280,700 thousand US dollars, then experiences a marked decrease to 2,837,900 thousand US dollars. Subsequent values show some recovery with amounts fluctuating between approximately 2,935,100 and 4,034,700 thousand US dollars, but no clear upward trend is established. The FCFE demonstrates a tendency to decline after the first period, with intermittent rebounds but generally lower levels compared to the initial value.

In summary, while operating cash flows have generally remained strong, showing resilience and capacity to generate cash despite periodic variances, the free cash flow available to equity holders reflects more modest and somewhat inconsistent recovery after an initial significant decrease. This may indicate changes in capital expenditures, debt repayments, or other financing activities impacting residual cash flow to equity holders. Continuous monitoring of these trends is advisable to assess the ongoing operational efficiency and financial flexibility.

The analysis of the financial data over the period from 2020 to 2025 reveals several notable trends in the company's share price, free cash flow to equity (FCFE) per share, and the price-to-FCFE ratio.

Share Price

The share price experienced an initial rise from $93.53 in 2020 to a peak of $110.78 in 2021. Following this, it declined to $97.95 in 2022, showed a moderate recovery to $105.57 in 2023, and then trended downward to $98.26 in 2024 and further to $84.78 in 2025. This indicates a period of volatility with an overall downward adjustment from the high in 2021.

FCFE per Share

The FCFE per share decreased sharply from $4.50 in 2020 to $2.42 in 2021, suggesting a significant reduction in the free cash flow available to equity holders during that year. Subsequently, it increased gradually to $2.81 in 2022 and further to $3.55 in 2023. This was followed by slight declines to $3.05 in 2024 and $2.58 in 2025. Overall, the FCFE per share showed a recovery after the initial drop but did not return to the 2020 level, indicating some challenges in maintaining earlier cash flow levels.

Price-to-FCFE Ratio (P/FCFE)

The price-to-FCFE ratio exhibited a notable increase from 20.79 in 2020 to a high of 45.80 in 2021. This suggests that the market priced the company shares at a considerably higher multiple of free cash flow per share despite the FCFE per share decrease. After 2021, the ratio declined steadily to 34.82 in 2022 and 29.75 in 2023, but then slightly increased again to 32.25 in 2024 and 32.84 in 2025. The elevated P/FCFE ratios following 2020 imply greater investor expectations or market optimism that was somewhat moderated in subsequent years.

In summary, the data reflects a period of significant fluctuations, with the share price and FCFE per share demonstrating volatility and partial recovery after initial declines. The market's valuation relative to free cash flow per share rose sharply in 2021, indicating heightened sentiment, before settling at moderately elevated levels thereafter. These patterns suggest a dynamic financial environment with cyclical investor confidence and varying operational cash flow performance over the observed periods.