Starbucks Corporation (SBUX)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 4,697,100 | 4,006,900 |
| Long-term debt | US$ in thousands | 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 | 11,159,100 | 9,141,500 |
| Total stockholders’ equity | US$ in thousands | -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 | -4,320,600 | -5,036,900 |
| 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% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $6,206,400K ÷ ($13,564,800K + $-8,616,000K)
= 125.41%
Based on the provided data, Starbucks Corp.'s return on total capital has exhibited fluctuating performance over the past year. The return on total capital stood at 94.20% as of December 31, 2023, indicating a strong ability to generate earnings in relation to the total capital employed. This represented an increase from the previous period, where the return on total capital was 78.34% as of October 1, 2023.
The trend in the return on total capital suggests a general level of stability and efficiency in the company's use of total capital to generate returns. However, it is important to note that the return on total capital has shown some variability throughout the year, with fluctuations ranging from 71.36% to 94.20%.
Overall, the return on total capital for Starbucks Corp. demonstrates the company's ability to effectively generate profits from its total capital base, but the variations in performance over the year may warrant further analysis to understand the underlying factors driving these fluctuations.
Peer comparison
Dec 31, 2023