Starbucks Corporation (SBUX)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 5,408,800 | 5,870,800 | 4,617,800 | 4,872,100 | 1,561,700 |
| Total assets | US$ in thousands | 31,339,300 | 29,445,500 | 27,978,400 | 31,392,600 | 29,374,500 |
| Operating ROA | 17.26% | 19.94% | 16.50% | 15.52% | 5.32% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $5,408,800K ÷ $31,339,300K
= 17.26%
Operating return on assets (operating ROA) measures a company's ability to generate operating profits from its assets. In the case of Starbucks Corporation, the operating ROA has shown fluctuations over the past five years.
In Sep 30, 2024, Starbucks achieved an operating ROA of 17.26%, indicating that the company generated $0.1726 in operating income for every dollar of assets employed. This represents a decrease from the previous year's operating ROA of 19.94%.
Compared to Sep 30, 2020, Starbucks has made significant improvements in its operating efficiency, with the operating ROA increasing from 5.32% to 17.26% in 2024. This suggests that the company has been more effective in utilizing its assets to generate operating profits over the years.
However, it is important to note the downward trend in the operating ROA from 2019 to 2024, with a peak of 19.94% in 2023 followed by a decline in subsequent years. This trend indicates a potential decrease in operating efficiency or profitability relative to the assets employed by the company.
Overall, while Starbucks has shown improvements in operating ROA over the years, the recent decline raises some concerns about the company's ability to maintain or improve its profitability in relation to its asset base. Further analysis is warranted to understand the factors driving these changes and to assess the company's operational performance comprehensively.
Peer comparison
Sep 30, 2024