Starbucks Financial Analysis and Financial Ratios

Quality Business Consultant's financial analysis expert, Paul Borosky, MBA., doctoral candidate, and published author, has created proprietary financial models to help analyze Starbucks' financial performance using Starbucks summarized income statements and balance sheets for the last five years, 2016 to 2020, found in their Annual Reports and Starbucks10ks. 

Further, our financial model also calculates over 20 popular financial ratios, such as Starbucks' current ratio, return on equity, and debt ratio. This information is the basis of our financial report, "Starbucks Financial Report," where we offer insights into understanding Starbucks financial standing through insightful financial analysis.

A Beginner's Guide to Starbucks Financial Analysis - 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.
  • 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

$14.99
  • 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).

Starbucks' Financial Report and Financial Analysis

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

Price: $9.99

Starbucks Beginner’s Guide 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 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 for 2021 by Paul Borosky, MBA.

Price: $14.99

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

Starbucks Financial Report by Paul Borosky, MBA.

Hey All,

Thanks for considering my Starbucks Financial Report. In this report, you will be able to find preliminary information about Apple's current financial performance as well as some historical track records and trends. Also, in this report, written by myself, Paul Borosky, MBA., Doctoral Candidate, and published author, you will find:

  • Summarized income statement for the last 5 years.
  • Summarized balance sheet for the last 5 years.
  • Summary analysis by myself of important income statement, balance sheet, and financial ratio trends and other happenings.
  • Five year’s 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 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.

Sincerely,

Paul, MBA.

Learn More

Sample Report

Sample report 2
Financial Report Sample 1

Starbucks Income Statement Analysis Sample

In this section of the financial report, I walk you through a broad definition as to what an income statement is and why it is important.  From this, I then discuss and define important income statement line items, such as revenues, gross profits, etc. in detail.  Finally, I offer a summary analysis of the company's important income statement line item trends.  For example,...

Starbucks Cost of Goods Sold.

Starbucks' cost of goods ended 2016 at $8.5 billion.  This was 39.9% of revenues.  In the next three years, the organization's cost of goods sold would increase to $10.1 billion ending 2018.  As compared to revenues, the cost of goods sold would increase to 41.2%.  Fortunately, in the next two years, the organization's cost of goods sold would decline, ending 2020 at 32.7% of revenues.

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

Starbucks Balance Sheet Analysis Sample

In this section of the financial report, I walk you through a broad definition of what a balance sheet is and why it is important.  From this, I then discuss and define important balance sheet line items, such as cash, inventory, etc., in detail.  Finally, I offer a summary analysis of the company's important balance sheet line item trends.  For example,...

Starbucks Balance Sheet Analysis Sample

In this section of the financial report, I walk you through a broad definition as to what a balance sheet is and why it is important.  From this, I then discuss and define important balance sheet line items, such as cash, inventory, etc. in detail.  Finally, I offer a summary analysis of the company's important balance sheet line item trends.  For example,...

Starbucks Property, Plant, and Equipment

Starbucks property, plant, and equipment ended 2016 at $4.5 billion.  In the next four years, the company would continually increase its property, plant, and equipment ending 2019 at $6.4 billion.  However, the firm would moderately decrease its property, plant, and equipment in 2020, ending the year at $6.2 billion. 

Divesting property, plant, and equipment in a pandemic does not give investors a warm fuzzy feeling.  This shows that the company's executives believe their long-term growth to be substantially lower than expected.  If this was not the case, why sell off property, plant, and equipment?  A better strategy would have been to suck up the low utilization rate for the short-term.  However, they chose to divest, which shows the company may be heading into a slower growth phase for the next several years.

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

Starbucks Financial Ratios Sample

In this section of the financial report, I walk you through definitions of various popular financial ratios, how to calculate the ratios, formulas used, etc. Also, for some popular financial ratios, I provide brief explanations of what the ratios mean as it is related to the company.

Starbucks Quick Ratio

The organization's quick ratio ended 2016 at .74.  In the next two years, the organization's quick ratio would climb to 1.95.  However, in 2019, the quick ratio would fall to .67 only to rebound in 2020 to .91.  The same issue is seen here as with other liquidity ratios, which is that the organization seems to be all over the board with their oversight of current assets and current liabilities.  I can't stress this enough. The company needs to get on the stick and better manage their current assets and current liabilities in order to reduce perceived risk.

Starbucks Fixed Asset Turnover Ratio

Starbucks fixed asset turnover ended in 2016 at 4.7.  In the next five years, the company would substantially decrease their fixed asset turnover ending 2020 at 3.77.  The substantial and persistent decrease in fixed asset turnover indicates that the company is underutilizing its fixed assets year-over-year.  To mitigate this problem, the executive team needs to sell off some of its underutilized property, plant, equipment.  By reducing their fixed assets, the company will be able to better utilize all assets under management.

Starbucks Return on Equity

Starbucks' return on equity ended in 2016 at 47.8%.  In the next two years, the organization's return on equity would skyrocket to 384% in 2018.  However, in the next two years, the company's return on equity would fall to a negative.  In 2020, the company's return on equity would be -11.89%.

A negative return on equity is not unheard of for public companies.  There are several potential reasons for this anomaly.  A driving reason is that the organization is paying out a substantial amount in dividends.  These dividend payments are causing the company's retained earnings to fall through the floor.  As retained earnings go negative, so does its equity position.  To mitigate this problem, Starbucks needs to tone down its dividend payout.  By reducing the dividend payout, the company is able to eventually increase its return on equity to a positive level.

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