Starbucks Corporation (SBUX)
Fixed asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 36,176,200 | 35,975,600 | 32,250,300 | 29,060,600 | 23,518,000 |
| Property, plant and equipment | US$ in thousands | 8,665,500 | 7,387,100 | 6,560,500 | 6,369,500 | 6,241,400 |
| Fixed asset turnover | 4.17 | 4.87 | 4.92 | 4.56 | 3.77 |
September 30, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $36,176,200K ÷ $8,665,500K
= 4.17
The fixed asset turnover ratio measures a company's ability to generate sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is using its fixed assets more efficiently to generate sales.
For Starbucks Corporation, the fixed asset turnover has been relatively stable over the past five years, ranging from 3.77 to 4.92. The decreasing trend from 2022 to 2024 may be indicative of either a decrease in sales or an increase in the value of fixed assets. A fixed asset turnover ratio of 4.17 in 2024 suggests that for every dollar invested in fixed assets, Starbucks generated $4.17 in sales revenue.
Overall, Starbucks has shown consistent efficiency in utilizing its fixed assets to generate sales revenue, with fluctuations in the ratio potentially reflecting changes in operational efficiency or investment in new fixed assets. It would be beneficial to further investigate the underlying factors driving the changes in the fixed asset turnover ratio over the years to assess the company's operational effectiveness and asset utilization.
Peer comparison
Sep 30, 2024