Starbucks Corporation (SBUX)
Return on assets (ROA)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 4,124,500 | 3,281,600 | 4,199,300 | 928,300 | 3,599,200 |
| Total assets | US$ in thousands | 29,445,500 | 27,978,400 | 31,392,600 | 29,374,500 | 19,219,600 |
| ROA | 14.01% | 11.73% | 13.38% | 3.16% | 18.73% |
September 30, 2023 calculation
ROA = Net income ÷ Total assets
= $4,124,500K ÷ $29,445,500K
= 14.01%
In analyzing the return on assets (ROA) of Starbucks Corporation over the past five years, we observe fluctuations in the company's efficiency in generating profits from its assets.
The ROA increased steadily from 2019 to 2021, reaching a peak of 18.73% in 2019 before declining slightly to 13.38% in 2021. This upward trend indicates that Starbucks effectively utilized its assets to generate profits during this period.
However, there was a significant drop in ROA in 2020 to 3.16%, which suggests a decrease in profitability relative to the assets employed. This decline could be attributed to various factors such as economic downturn, operational challenges, or strategic decisions made by the company.
The ROA bounced back in 2022 to 11.73% and further improved to 14.01% in 2023, indicating that Starbucks has been able to enhance its asset efficiency and profitability in recent years.
Overall, while there have been fluctuations in Starbucks' ROA over the past five years, the company seems to have managed to maintain a relatively healthy level of profitability relative to its assets, with the most recent data showing a positive trend in asset utilization and profitability.
Peer comparison
Sep 30, 2023