Starbucks Corporation (SBUX)
Return on total capital
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,951,800 | 4,713,000 | 5,825,700 | 1,605,000 | 4,801,800 |
| Long-term debt | US$ in thousands | 13,547,600 | 13,119,900 | 13,616,900 | 14,659,600 | 11,167,000 |
| Total stockholders’ equity | US$ in thousands | -7,994,800 | -8,706,600 | -5,321,200 | -7,805,100 | -6,232,200 |
| Return on total capital | 107.19% | 106.79% | 70.23% | 23.42% | 97.30% |
September 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,951,800K ÷ ($13,547,600K + $-7,994,800K)
= 107.19%
Starbucks Corporation's return on total capital has shown a generally positive trend over the past five years, with significant fluctuations. The return on total capital increased from 23.42% in 2020 to 70.23% in 2021, before experiencing a further increase to 106.79% in 2022. In the most recent period of Sep 30, 2023, the return on total capital peaked at 107.19%, indicating the company's ability to generate more than double the return for every dollar of total capital invested. This demonstrates efficient capital utilization and profitability improvements for Starbucks Corporation. However, it is important to note the fluctuating trend and analyze underlying factors driving these changes to assess the long-term sustainability of this performance.
Peer comparison
Sep 30, 2023