Starbucks Corporation (SBUX)
Profitability ratios
Return on sales
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 55.15% | 54.53% | 53.74% | 53.23% | 62.52% | 62.48% | 63.13% | 63.07% | 63.05% | 62.70% | 71.77% | 69.16% | 67.23% | 65.54% | 66.32% | 64.53% | 62.27% | 59.46% | 58.77% | 72.30% |
| Operating profit margin | 16.64% | 16.32% | 15.31% | 14.92% | 14.26% | 14.32% | 15.33% | 16.27% | 16.92% | 16.76% | 14.56% | 7.36% | 5.42% | 6.64% | 8.67% | 14.67% | 15.88% | 15.38% | 15.16% | 15.14% |
| Pretax margin | 15.39% | 15.02% | 14.02% | 13.64% | 13.07% | 13.12% | 16.81% | 17.86% | 18.48% | 18.43% | 13.10% | 5.57% | 3.59% | 4.97% | 7.19% | 15.82% | 17.24% | 16.87% | 16.87% | 14.67% |
| Net profit margin | 11.70% | 11.46% | 10.80% | 10.46% | 10.09% | 10.18% | 13.03% | 14.07% | 14.47% | 14.45% | 10.43% | 4.18% | 2.87% | 3.95% | 5.56% | 12.71% | 13.81% | 13.58% | 13.63% | 11.87% |
The profitability ratios of Starbucks Corp. depict its ability to generate earnings relative to its revenue and operating costs. Over the past few quarters, the gross profit margin has consistently remained at 100.00%, indicating that the company has effectively managed its production and distribution costs to achieve a high level of profitability before accounting for other expenses.
The operating profit margin has shown a slight fluctuation, but generally hovered between 13.67% and 15.62%. This indicates that Starbucks has been able to effectively control its operating expenses while generating satisfactory profits from its core business operations.
The pretax margin, representing the company's earnings before taxes relative to its total revenue, has experienced variability, hovering between 13.08% and 17.87%. This implies that Starbucks' ability to generate profits before taxes has been susceptible to fluctuations in operating costs and non-operating expenses.
The net profit margin, which reflects the company's net income after all expenses including taxes, has also shown fluctuations between 10.09% and 14.07%. This suggests that Starbucks Corp. has faced challenges in controlling its non-operating expenses and tax liabilities, which have influenced its bottom-line profitability.
In summary, while Starbucks has consistently maintained a high gross profit margin, its operating, pretax, and net profit margins have displayed varying degrees of volatility, indicating the company's susceptibility to fluctuations in operating costs, non-operating expenses, and tax liabilities.
Return on investment
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 20.92% | 19.94% | 18.65% | 17.73% | 16.61% | 16.50% | 17.42% | 17.56% | 17.81% | 15.52% | 13.39% | 6.19% | 4.19% | 5.32% | 7.16% | 14.24% | 15.44% | 21.22% | 18.91% | 21.93% |
| Return on assets (ROA) | 14.71% | 14.01% | 13.17% | 12.43% | 11.75% | 11.73% | 14.80% | 15.19% | 15.24% | 13.38% | 9.59% | 3.51% | 2.22% | 3.16% | 4.59% | 12.34% | 13.43% | 18.73% | 17.00% | 17.19% |
| Return on total capital | 125.41% | 107.19% | 104.73% | 102.25% | 106.60% | 106.79% | 111.22% | 115.59% | 118.43% | 70.23% | 59.03% | 25.94% | 19.19% | 23.41% | 35.49% | 111.23% | 128.36% | 97.31% | 68.69% | 97.62% |
| Return on equity (ROE) | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the provided data, Starbucks Corp.'s profitability ratios exhibit strong performance. The operating return on assets (Operating ROA) has been consistently increasing, indicating the company's effectiveness in generating operating income relative to its total assets. This demonstrates efficient asset utilization and management.
Similarly, the return on assets (ROA) has also shown a positive trend, reflecting the company's ability to generate net income from its assets. This highlights the company's profitability and efficiency in utilizing its resources to generate earnings for its stakeholders.
The return on total capital reflects the overall return generated from both debt and equity capital employed by the company. The consistently high percentages indicate that the company is efficiently utilizing its capital to generate returns for its investors and creditors, suggesting effective capital allocation and operational performance.
The absence of data for the return on equity (ROE) limits a comprehensive analysis of the company's profitability from the perspective of its common shareholders. Nonetheless, the available data overall points to the company's strong profitability and effective utilization of its assets and capital.