Starbucks Corporation (SBUX)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 5,530,200 | 5,951,800 | 4,713,000 | 5,825,700 | 1,605,000 |
| Long-term debt | US$ in thousands | 14,319,500 | 13,547,600 | 13,119,900 | 13,616,900 | 14,659,600 |
| Total stockholders’ equity | US$ in thousands | -7,448,900 | -7,994,800 | -8,706,600 | -5,321,200 | -7,805,100 |
| Return on total capital | 80.49% | 107.19% | 106.79% | 70.23% | 23.42% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $5,530,200K ÷ ($14,319,500K + $-7,448,900K)
= 80.49%
The return on total capital for Starbucks Corporation has shown a fluctuating trend over the five-year period from 2020 to 2024. In 2020, the return on total capital was 23.42%, which increased significantly to 70.23% in 2021. Subsequently, in 2022 and 2023, the return on total capital remained relatively stable at around 106-107%. However, there was a notable decrease in the return on total capital to 80.49% in 2024.
Overall, Starbucks Corporation has demonstrated strong returns on total capital over the years, indicating the company's efficient utilization of both equity and debt capital to generate profits. The fluctuation in the return on total capital suggests that the company's capital allocation strategies may have varied in response to changing market conditions or internal factors. Further analysis of the company's financial performance and capital structure dynamics would provide deeper insights into the drivers behind these fluctuations.
Peer comparison
Sep 30, 2024