Starbucks Corporation (SBUX)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 62.79% | 63.68% | 62.48% | 62.70% | 58.41% |
| Operating profit margin | 14.95% | 16.32% | 14.32% | 16.77% | 6.64% |
| Pretax margin | 13.73% | 15.01% | 13.12% | 18.43% | 4.97% |
| Net profit margin | 10.40% | 11.46% | 10.18% | 14.45% | 3.95% |
The profitability ratios of Starbucks Corporation have shown varying trends over the past five years. The gross profit margin remained relatively stable around the range of 62% to 64%, reflecting consistent efficiency in managing direct costs of goods sold.
The operating profit margin saw fluctuations, with a peak in 2023 at 16.32% but a decrease to 14.95% in 2024. This indicates some challenges in controlling operating expenses compared to revenue generation.
Similarly, the pretax margin exhibited fluctuations, reaching a high of 18.43% in 2021 but decreasing to 13.73% in 2024. This suggests changes in non-operating income or expenses impacting the company's profitability.
The net profit margin, while showing an overall increasing trend, experienced fluctuations as well. The substantial growth from 2019 to 2021, followed by a slight decline in 2022 and 2023, may indicate shifts in tax expenses or net income efficiency.
Overall, Starbucks has maintained healthy profitability levels, with positive net profit margins indicating effective cost management and revenue generation. However, the fluctuations in operating and pretax margins suggest the need for continued monitoring and strategic adjustments to sustain profitability in the long term.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 17.26% | 19.94% | 16.50% | 15.52% | 5.32% |
| Return on assets (ROA) | 12.00% | 14.01% | 11.73% | 13.38% | 3.16% |
| Return on total capital | 80.49% | 107.19% | 106.79% | 70.23% | 23.42% |
| Return on equity (ROE) | — | — | — | — | — |
Starbucks Corporation has shown a consistent improvement in its profitability ratios over the past five years, with the operating return on assets (Operating ROA) increasing from 5.32% in 2020 to 17.26% in 2024. This indicates that the company has been able to generate more operating income from its assets over the years.
Similarly, the Return on assets (ROA) has also shown a positive trend, increasing from 3.16% in 2020 to 12.00% in 2024. This signifies that Starbucks has been able to generate higher profits relative to its total assets.
The Return on total capital has displayed significant growth as well, reaching 80.49% in 2024 from 23.42% in 2020. This ratio indicates the overall efficiency of the company in generating returns from both debt and equity capital.
The Return on equity (ROE) data is missing for the period analyzed, which limits a comprehensive assessment of the company's profitability from an equity shareholder's perspective.
Overall, Starbucks Corporation's profitability ratios demonstrate a strong performance, with a clear increasing trend in generating returns for its shareholders and efficient utilization of its assets and capital over the years.