Starbucks Corporation (SBUX)
Profitability ratios
Return on sales
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 63.68% | 62.48% | 62.70% | 58.41% | 54.32% |
| Operating profit margin | 16.32% | 14.32% | 16.77% | 6.64% | 15.38% |
| Pretax margin | 15.01% | 13.12% | 18.43% | 4.97% | 16.87% |
| Net profit margin | 11.46% | 10.18% | 14.45% | 3.95% | 13.58% |
The profitability ratios of Starbucks Corporation have shown a consistent improvement over the years, reflecting the company's ability to effectively manage its operations and generate profits. The gross profit margin has gradually increased from 54.32% in 2019 to 63.68% in 2023, indicating efficient cost management and pricing strategies.
Similarly, the operating profit margin has also shown an upward trend, reaching 16.32% in 2023 from 15.38% in 2019. This demonstrates Starbucks' effectiveness in controlling operating expenses and maximizing operating income.
The pretax margin reflects the company's ability to generate profits before accounting for taxes, showing an improvement from 4.97% in 2020 to 15.01% in 2023. This indicates enhanced operational efficiency and profitability.
Furthermore, the net profit margin, which signifies the company's bottom-line profitability, has increased from 3.95% in 2020 to 11.46% in 2023. This improvement suggests that Starbucks has been successful in managing its expenses and increasing net income relative to its revenue over the years.
Overall, the consistent growth in profitability margins reflects Starbucks Corporation's strong financial performance and efficient management of its business operations.
Return on investment
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 19.94% | 16.50% | 15.52% | 5.32% | 21.22% |
| Return on assets (ROA) | 14.01% | 11.73% | 13.38% | 3.16% | 18.73% |
| Return on total capital | 107.19% | 106.79% | 70.23% | 23.42% | 97.30% |
| Return on equity (ROE) | — | — | — | — | — |
Starbucks Corporation has shown consistent improvement in its profitability ratios over the past five years, as indicated by the Operating return on assets (Operating ROA) increasing from 15.52% in 2021 to 19.94% in 2023. This demonstrates the company's effectiveness in generating profits from its assets through its core operations.
Similarly, the Return on assets (ROA) has also steadily increased from 13.38% in 2021 to 14.01% in 2023, reflecting Starbucks' ability to generate profit from its total assets.
The Return on total capital has experienced significant growth, reaching 107.19% in 2023, compared to 70.23% in 2021. This indicates that Starbucks has been highly successful in generating returns for both equity and debt holders.
Notably, the Return on equity (ROE) data is missing for all years, which limits a comprehensive assessment of the company's profitability solely from an equity perspective. Overall, Starbucks' profitability ratios highlight its strong performance and efficiency in utilizing its assets and capital to generate returns for investors.