Starbucks Financial Statement and Financial Ratios Analysis

Starbucks Financial Statements and Financial Ratios Analyzed

A Beginner's Guide to Starbucks Financial Analysis - 2021

$5.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Starbucks Summarized Income Statements and Balance Sheets.
  • Included Popular financial ratios for Starbucks included... With calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with Starbucks financial ratios analysis.
  • NOT Included-Identify and discuss Starbucks financial trends.
  • NOT Included-Expert financial analysis done by Paul Borosky, MBA.
  • NOT Included- Analyst "Letter Grades" for Starbucks' ratios.
  • NOT Included-Free Annual Reports Download for Starbucks (5 Years)

Starbucks Financial Report by Paul Borosky, MBA. - 2021

$9.99
  • Included Easy to download PDF File.
  • Included Easy to use format.
  • Included Starbucks Summarized Income Statements and Balance Sheets.
  • Included Popular financial ratios for Starbucks included... With calculations and formulas!
  • Included Expert tips to help with financial statements analysis.
  • Included Expert tips to help with Starbucks financial ratios analysis.
  • Included Identify and discuss Starbucks financial trends.
  • Included Expert financial analysis done by Paul Borosky MBA.
  • Included Analyst "Letter Grades" for Starbucks' ratios.
  • Included Free Annual Reports Download for Starbucks (5 years).

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

Starbucks Financial Report for 2021 by Paul Borosky, MBA.
  • Included - Free Bonus Downloads: Annual Statements for the Last Five Years (10k reports)!
  • Included - Expert financial analysis done by Paul Borosky MBA.
  • Included - Analyst "Letter Grades" for ratios.
  • **See Terms and Conditions.

Starbucks Beginner’s Guide 2021

  • Disclaimer 3
  • Forward 4
  • Income Statement 6
  • Starbucks’ Summarized Income Statements 6
  • Revenues 7
  • Cost of Goods Sold (COGS) 8
  • Selling, General, and Administrative Expenses (SG&A 8
  • Research and Development (R&D) 9
  • Operating Expenses 10
  • Earnings Before Interest and Taxes (EBIT 10
  • Interest Expense 11
  • Earnings Before Taxes (EBT) 12
  • Taxes 12
  • Net income 12
  • Tax Rate 13
  • Balance Sheet 15
  • Starbucks’ Summarized Balance Sheets 15
  • Cash 16
  • Short-Term Investments 17
  • Accounts Receivables 17
  • Inventory 18
  • Current Assets 19
  • Property, Plant, and Equipment (PP&E) 20
  • Total Assets 20
  • Accounts Payable 21
  • Accrued Expenses 22
  • Short-Term Debt 23
  • Total Current Liabilities 24
  • Long Term Debt (LT Debt) 25
  • Total Liabilities 26
  • Common Stock and Additional Paid-in Capital 27
  • Treasury 27
  • Retained Earnings 28
  • Total Equity 29
  • Financial Ratios 30
  • Starbucks’ Liquidity Ratios 31
  • Current Ratio 31
  • Quick Ratio 32
  • Cash Ratio 33
  • Starbucks’ Asset Ratios 35
  • Total Asset Turnover 36
  • Fixed Asset Turnover 37
  • Days Sales Outstanding 37
  • Inventory Turnover 38
  • Accounts Receivable Turnover 39
  • Accounts Payable Turnover 40
  • Other Asset Ratio Calculations 41
  • Working Capital Turnover 41
  • Average Days in Inventory 41
  • Average Days Payable 41
  • Starbucks’ Profitability Ratios 43
  • Return on Assets (ROA) 43
  • Return on Equity (ROE) 44
  • Net Profit Margin 45
  • Gross Profit Margin 46
  • Operating Profit Margin 46
  • Starbucks’ Debt Ratios 48
  • Debt Ratio 48
  • Debt to Equity Ratio 49
  • Times Interest Earned 50

Starbucks Financial Report 2021

Table of Contents

  • Disclaimer 3
  • Forward 4
  • Income Statement 6
  • Starbucks’ Summarized Income Statements 6
  • Revenues 7
  • Cost of Goods Sold (COGS) 8
  • Selling, General, and Administrative Expenses (SG&A 9
  • Research and Development (R&D) 10
  • Operating Expenses 11
  • Earnings Before Interest and Taxes (EBIT 11
  • Interest Expense 12
  • Earnings Before Taxes (EBT) 13
  • Taxes 13
  • Net income 14
  • Tax Rate 15
  • Balance Sheet 16
  • Starbucks’ Summarized Balance Sheets 16
  • Cash 17
  • Short-Term Investments 18
  • Accounts Receivables 19
  • Inventory 20
  • Current Assets 20
  • Property, Plant, and Equipment (PP&E) 21
  • Total Assets 22
  • Accounts Payable 24
  • Accrued Expenses 25
  • Short-Term Debt 25
  • Total Current Liabilities 26
  • Long Term Debt (LT Debt) 27
  • Total Liabilities 29
  • Common Stock and Additional Paid-in Capital 29
  • Treasury 30
  • Retained Earnings 31
  • Total Equity 32
  • Financial Ratios 33
  • Starbucks’ Liquidity Ratios 34
  • Current Ratio 34
  • Cash Ratio 35
  • Quick Ratio 36
  • Starbucks’ Asset Ratios 38
  • Total Asset Turnover 39
  • Fixed Asset Turnover 40
  • Days Sales Outstanding 41
  • Inventory Turnover 42
  • Accounts Receivable Turnover 43
  • Accounts Payable Turnover 44
  • Other Asset Ratio Calculations 45
  • Working Capital Turnover 45
  • Average Days in Inventory 45
  • Average Days Payable 45
  • Starbucks’ Profitability Ratios 47
  • Return on Assets (ROA) 47
  • Return on Equity (ROE) 48
  • Net Profit Margin 49
  • Gross Profit Margin 50
  • Operating Profit Margin 51
  • Starbucks’ Debt Ratios 53
  • Debt Ratio 53
  • Debt to Equity Ratio 54
  • Times Interest Earned 55
  • Summary 57
  • Starbucks’ Strengths 57
  • Starbucks’ Weaknesses 57
  • Starbucks’ Final Grade 57

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 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 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

SG&A:  

Starbucks SG&A, as compared to revenues, ended 2017 at 6.5% of revenues.  In the next four years, the organization would maintain a steady SG&A as compared to revenues.  Specifically, in 2021, the organization’s SG&A would be 6.6% of revenues.  This shows that the firm is maintaining a steady course with its overhead as compared to revenues—a decent trend, in my opinion.

Analyst Grade: A

Starbucks 2021 Summary Income Statement

Column1

2021

2020 2019 2018

2017

Revenues

                   29,060

                   23,518                    26,508                    24,720

                     22,387

COGS

                     8,738

                     7,694                      8,527                    10,175

                       9,034

Gross Profit

                   20,322

                   15,824                    17,981                    14,545

                     13,353

 
SG&A

                     1,932

                     1,679                      1,824                      1,759

                       1,451

Depreciation

                     1,441

                     1,431                      1,377                      1,247

                       1,011

R & D                            -                            -                            -

                        224

                          154

Other                            -                            -                            -                            -                             -
Total Operating Expenses

                   24,573

                   22,278                    22,728                    21,137

                     18,643

EBIT

                     4,872

                     1,561                      4,077                      3,883

                       4,135

Other Income                            -                            -                            -

                        191

                          181

Interest Expense

                        469

                        437                         331                         170

                            93

EBT

                     5,356

                     1,164                      4,466                      5,780

                       4,318

Taxes

                     1,156

                        239                         872                      1,262

                       1,433

Net Income

                    4,199

                       928                     3,599                     4,518

                     2,885

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

 Accounts Receivable:

Starbucks Accounts Receivable ended 2017 at $870 million.  The next year, the organization’s Accounts Receivable would fall substantially, ending 2018 at $693 million.  Fortunately, the organization would increase its Accounts Receivables moderately, ending 2021 at $940 million.  The increase in accounts receivable may indicate that the organization is selling more products through retailers.  The diversification in revenue channels, in my opinion, is a good trend.

Analyst Grade: B+

Starbucks 2021 Summary Balance Sheet

Column1

2021

2020 2019 2018

2017

Cash

                       6,455

                   4,350                    2,686                    8,756

                   2,462

Short Term Investment

                          162

                      281                         71                       182

                      229

Account Receivable

                          940

                      883                       879                       693

                      870

Inventory

                       1,603

                   1,151                    1,529                    1,401

                   1,364

Other
Current Assets

                      9,756

                 7,806                  5,653                12,494

                 5,283

Net PPE

                       6,369

                   6,241                    6,431                    5,929

                   4,920

Goodwill

                       3,677

                   3,597                    3,490                    3,542

                   1,539

Other
Total Assets

                   31,392

               29,374                19,220                24,156

               14,366

Accounts Payable

                       1,211

                      997                    1,189                    1,179

                      783

Accrued Expense

                       2,745

                   1,856                    2,418                    2,298

                   1,935

Accrued Taxes

                          348

                        98                    1,292                       103

                        -

Notes Payable                              -

                      438

                        -                         -

                        -

LT Debt - Current

                          998

                   1,249                         -                       350

                        -

Other                              -                         -                         -                         -                         -
Total Current Liabilities

                       8,151

                   7,346                    6,169                    5,684

                   4,221

LT Debt

                     13,616

                 14,659

                 11,167                    9,090

                   3,933

Other
Total Liabilities

                   36,707

               37,173                25,451                22,981

                 8,909

Common Stock

                          847

                      374                         41                         42

                        43

Treasury                         -                         -                         -
Retained Earnings

                     (6,315)

                 (7,815)                  (5,771)                    1,457

                   5,563

Other                         -                         -
Total Equity

                    (5,314)

                (7,805)                 (6,232)                  1,176

                 5,457

Total Equity & Liability

                   31,392

               29,374                19,220                24,156

               14,366

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 would 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 for 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

Starbucks 2021 Liquidity Ratios

Ratios

2021

2020 2019 2018

2017

Current Ratio                           1.20                    1.06      
Cash Ratio                           0.81                    0.63      
Quick Ratio                           1.00                    0.91      
Net Working Capital                         1,605                     460      
       

Starbucks 2021 Asset Utilization

Ratios

2021

2020 2019 2018

2017

Total Asset Turnover                           0.93                    0.80      
Fixed Asset Turnover                           4.56                    3.77      
Days Sales Outstanding                         11.45                  13.67      
Inventory Turnover (Using Sales)                         21.10                  17.55      
Inventory Turnover (Using COGS)                           6.35                    5.74      
Accounts Receivable Turnover                         31.88                  26.69      
Working Capital Turnover                         18.11                  51.13      
AP Turnover                           8.32                    6.69      
Average Days Inventory                         57.52                  63.57      
Average Days Payable                         43.85                  54.53      
     

Starbucks 2021 Profitability Ratios

Ratios

2021

2020 2019 2018

2017

Return on Assets

13.38%

3.16%

     
Return on Equity

-79.02%

-11.89%

     
Net Profit Margin

14.45%

3.95%

     
Gross Profit Margin

69.93%

67.28%

     
Operating Profit Margin

16.77%

6.64%

     
Basic Earning Power

15.52%

5.31%

     
ROCE

20.96%

7.09%

     
Capital Employed                       23,241                22,028      
ROIC

41.08%

14.52%

     
     

Starbucks 2021 Debt Ratios

Ratios

2021

2020 2019 2018

2017

Debt Ratio

46.55%

55.65%

     
Debt/Equity

-275.01%

-209.43%

     
Times Interest Earned                         10.39                    3.57