Starbucks Financial Statement and Financial Ratios Analysis

Starbucks Financial Statements and Financial Ratios Analyzed

Hey All,

Thanks for visiting my Starbucks Financial Report page. On this page, you will be able to find preliminary information about Starbucks' current financial performance as well as some historical track records and trends. 

For a more detailed examination of Starbucks' financial performance, I offer two reports, which are "A Beginner's Guide to Starbucks Financial Analysis" and "Starbucks Financial Report by Paul Borosky, MBA."  Both reports are written by myself, Paul Borosky, MBA., Doctoral Candidate and published author, and include:

  • Summarized income statement for the last 5 years.
  • Summarized balance sheet for the last 5 years.
  • Five years’ worth of over twenty common financial ratios presented with formulas, calculations, and analysis tips for each ratio.
  • Line-by-line description, explanation, and analysis tip for most financial statement line items and financial ratios.
  • Professional financial analysis tips are provided in each section to help YOU conduct your OWN financial analysis!
  • Each section includes an “in other words” segment.  This is where I use plain English to explain concepts.

 

For a MORE in-depth review of the company's financial statements and ratios, make sure to buy my "Starbucks Financial Report".  The financial report includes all aspects of my "Beginner's Guide" plus a whole lot more...

  • Professional financial analysis of important income statements, balance sheets, and financial ratio trends.
  • "Letter Grade" is assigned to most financial statement line items and financial ratios to help you better understand their overall trends for the last 5 years.
  • Overall financial analysis summary for the company.

Enjoy the preliminary information and for a more detailed analysis, buy the financial report!

Sincerely,

Paul, MBA.

PDF/Downloadable Version

Beginner's Guide to Starbucks 2022 Financial Analysis by Paul Borosky, MBA.

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Starbucks Financial Report for 2021 by Paul Borosky, MBA.

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Sample Financial Report

Sample Financial Report by Paul Borosky, MBA.
Financial Report Sample 2

Starbucks Company Summary

Starbucks headquarters is located in Seattle, Washington.  The company competes in the consumer cyclical sector—specifically, the restaurant industry.  At present, the organization employs approximately 380,000 individuals.  Starbucks' main revenue generators are coffee sales, pastry sales, and retail sales from grocers of their coffee products.  The organization has coffee shops in the United States, China, Canada, Japan, and several other countries the world over.

From a financial perspective, Starbucks' market capitalization is about $113 billion.  Their beta is .82.  This indicates that the company's stock is slightly less risky as compared to the overall market.  Their stock price range for the last 52 weeks has been between $95.14 to $126.32.  In the last year, their dividend payout has increased slightly.  At present, the dividend yield is 1.96%.

Starbuck Financial Report Sources

"Starbucks 2021 Financial Statements and Financial Ratios: Defined, Discussed, and Analyzed for 5 Years” was written by, Paul Borosky, MBA., doctoral candidate, and owner of Quality Business Plan.  In this summarized book, the author researched Starbucks 10k, Starbucks 2017 10k annual report, Starbucks 2021 10k annual report, Starbucks 2020 10k annual report, and Starbucks 2019 10k annual report as the basis for information gathering.  Once all Starbucks 10k annual statements were collected, the author then inserted Starbucks income statement information and Starbucks balance sheet information into a customized financial template. 

Section 1: Starbucks’s Income Statement – Summary Analysis

In this section, I walk through a broad definition as to what an income statement is and why it is important.  From this, I then discuss and define income statement line items, such as revenues, gross profits, etc. in detail.  After each line item is defined and discussed, I finally offer a summary analysis of Starbuck's important income statement line item trends.

Section 1: Starbucks’s Income Statement – Summary Analysis

In this section, I walk through a broad definition of what an income statement is and why it is important.  From this, I then discuss and define income statement line items, such as revenues, gross profits, etc., in detail.  After each line item is defined and discussed, I finally offer a summary analysis of Starbucks ' important income statement line item trends.

Revenue Growth

In the last five years, Starbucks’ revenues have increased by an average of 7.5% annually.  Further, in three of its last four years, the organization has achieved a positive growth rate.  The only exception was in 2020, when its growth rate decreased by 11.3%.  Overall, this is a good trend for the company.

Analyst Grade: A

Starbucks 2022 Summary Income Statement

Column1 2022 2021 2020 2019 2018
Revenues

                   32,250

                   29,060                    23,518                    26,508                      24,720
COGS                    10,317                      8,738                      7,694                      8,527                      10,175
Gross Profit                    21,933                    20,322                    15,824                    17,981                      14,545
 
SG&A                      2,032                      1,932                      1,679                      1,824                        1,759
Depreciation                      1,447                      1,441                      1,431                      1,377                        1,247
R & D                            -                            -                            -                            -                           224
Other                            -                            -                            -                            -                             -
Total Operating Expenses                    27,866                    24,573                    22,278                    22,728                      21,137
EBIT                      4,617                      4,872                      1,561                      4,077                        3,883
Other Income                            -                            -                            -                            -                           191
Interest Expense                         483                         469                         437                         331                           170
EBT                      4,232                      5,356                      1,164                      4,466                        5,780
Taxes                         948                      1,156                         239                         872                        1,262
Net Income                     3,282                     4,199                        928                     3,599

                     4,518

Section 2: Starbucks Balance Sheet – Summary Analysis

For Starbuck's balance sheet, I again go through each important line item from the balance sheet.  In reviewing each line item, I will define Starbucks ' balance sheet line item, such as cash, property, plant and equipment, and liabilities.  Next, I then offer a summary analysis of Starbucks ' important balance sheet line items.

Cash: 

Starbucks’ cash position ended 2017 at $2.4 billion.  As compared to sales, this would be 11%.  In the next four years, the organization’s cash rate would fluctuate between $4.3 billion to $8.7 billion while ending 2021 at $6.4 billion.  As compared to the sales, the $6.4 billion in cash would be 22.2% of sales.  The inconsistency in the organization’s cash as compared to the sales shows that the firm may be mismanaging its short-term assets, specifically its cash position.  From this observation, the organization’s overall cash trend would be poor.

Analyst Grade: C

Starbucks 2022 Summary Balance Sheet

Column1 2022 2021 2020 2019 2018
Cash                        2,818                    6,455                    4,350                    2,686                    8,756
Short Term Investment                           364                       162                       281                         71                       182
Account Receivable                        1,175                       940                       883                       879                       693
Inventory                        2,177                    1,603                    1,151                    1,529                    1,401
Other
Current Assets                       7,019                  9,756                  7,806                  5,653                12,494
Net PPE                        6,560                    6,369                    6,241                    6,431                    5,929
Goodwill                        3,283                    3,677                    3,597                    3,490                    3,542
Other
Total Assets                    27,978                31,392                29,374                19,220                24,156
 
Accounts Payable                        1,441                    1,211                       997                    1,189                    1,179
Accrued Expense                           761                    2,745                    1,856                    2,418                    2,298
Accrued Taxes                        2,137                       348                         98                    1,292                       103
Notes Payable                           175                         -                       438                         -                         -
LT Debt - Current                        1,749                       998                    1,249                         -                       350
Other                         -                         -                         -                         -
Total Current Liabilities                        9,152                    8,151                    7,346                    6,169                    5,684
 
LT Debt                      13,120                  13,616                  14,659                  11,167                    9,090
Other
Total Liabilities                    36,671                36,707                37,173                25,451                22,981
 
Common Stock                           205                       847                       374                         41                         42
Treasury                         -                         -
Retained Earnings                      (8,450)                  (6,315)                  (7,815)                  (5,771)                    1,457
Other                         -
Total Equity                       8,699                 (5,314)                 (7,805)                 (6,232)                  1,176
Total Equity & Liability                    27,978                31,392                29,374                19,220                24,156

Section 3: Starbucks Financial Ratio Summary

For this section, I have chosen several different financial ratios to review for Starbuck's Inc.  In reviewing each of Starbucks ' financial ratios, I first start with defining the financial ratio.  Next, I supply the financial formula for calculating the specific ratio.  Finally, I offer a brief analysis of Starbucks ' important financial ratios. 

Starbucks Current Ratio

Starbucks’ current ratio ended 2017 at 1.25.  In the next four years, the organization’s current ratio will be as high as 2.2 in 2018 and as low as .92 in 2019.  As for 2021, the organization’s current ratio was 1.2.  The latest current ratio shows that the firm has sufficient current assets to cover its current liabilities.  However, because the company fluctuates significantly in its current ratio, inherent risk is evident.  From this, I would only grade their current ratio status as average.

Analyst Grade: B-

Starbucks Total Asset Turnover

Starbucks ended 2017 with 1.56 their total asset turnover.  In the next four years, the organization’s total asset turnover would continually fall, ending 2021 at .93.  This indicates that the firm is consistently underutilizing total assets year-over-year.  To mitigate this problem, the firm needs to possibly sell off some fixed equipment or divest some of the cash in the form of dividend payments.

Analyst Grade: B