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
- 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
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 | |||