Starbucks Corporation (SBUX)
Return on total capital
| Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 5,530,200 | 5,993,400 | 6,206,400 | 5,951,900 | 5,441,800 | 5,151,300 | 4,800,100 | 4,712,900 | 5,854,700 | 6,064,100 | 6,074,300 | 5,825,800 | 4,025,000 | 1,809,600 | 1,297,700 | 1,604,800 | 2,137,700 | 4,592,100 | 4,997,400 | 4,802,000 |
| Long-term debt | US$ in thousands | 14,319,500 | 15,547,500 | 13,564,800 | 13,547,600 | 13,544,400 | 13,544,800 | 13,176,700 | 13,119,900 | 13,930,800 | 14,014,400 | 13,586,300 | 13,616,900 | 13,619,200 | 14,630,300 | 14,673,500 | 14,659,600 | 14,645,600 | 11,658,700 | 10,653,200 | 11,167,000 |
| Total stockholders’ equity | US$ in thousands | -7,448,900 | -8,449,400 | -8,616,000 | -7,994,800 | -8,348,600 | -8,506,900 | -8,673,800 | -8,706,600 | -8,666,500 | -8,768,000 | -8,457,200 | -5,321,200 | -6,800,800 | -7,654,000 | -7,909,700 | -7,805,100 | -8,621,600 | -7,530,100 | -6,759,900 | -6,232,200 |
| Return on total capital | 80.49% | 84.44% | 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% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 exhibited variability over the past several quarters, ranging from 19.19% to 125.41%. In the most recent quarter ending September 30, 2024, the return on total capital was 80.49%. This indicates that for every dollar of capital invested in the business, Starbucks generated a return of 80.49 cents.
Overall, the return on total capital has shown an upward trend from the end of 2021 to the end of 2023, peaking at 125.41% in December 2023. However, there was a slight decline in the return during the first three quarters of 2024, but the figure still remains relatively high compared to historical performance.
The high return on total capital signifies that Starbucks has been efficiently utilizing its capital to generate profits. Investors and stakeholders may view this metric positively as it indicates the company's ability to generate substantial returns on the capital invested in its operations. However, it is important to monitor this ratio over time to ensure consistency and sustainability in the company's performance.
Peer comparison
Sep 30, 2024