Starbucks Financial Performance from Time to Time
Starbucks Financial Performance from Time to
Time- Starbucks is the world’s
premier roaster, marketer, and retailer of specialty coffee. Formed in
1971 by Jerry Baldwin, Zev Siegl,
and Gordon Bowker, this company has become the leading player in chain
restaurants with markets spread across 84 counties and 33 thousand locations of
branch stores, while 15,444 of its stores were located in the United States.
Operationally, this company still has its main office in Utah Avenue South, Seattle,
Washington, United States of America.
Along with the development of the company’s business, Starbucks has many brands, namely Teavana, Seattle’s Best Coffee, Evolution Fresh, Ethos, Starbucks Reserve, and Princi. Now this company has a billion in total assets and revenue annually.
The Total Assets, Liabilities, and Equities of Starbucks
|
|
|||
|
Years |
Total
Assets |
Total
Liabilities |
Total
Equity |
|
|
million US Dollars |
million US Dollars |
Million US Dollars |
|
1998 |
992 |
198 |
794 |
|
1999 |
1,252 |
291 |
961 |
|
2000 |
1,491 |
343 |
1,148 |
|
2001 |
1,851 |
476 |
1,375 |
|
2002 |
2,214 |
491 |
1,723 |
|
2003 |
2,729 |
647 |
2,082 |
|
2004 |
3,386 |
916 |
2,470 |
|
2005 |
3,514 |
1,424 |
2,090 |
|
2006 |
4,428 |
2,200 |
2,228 |
|
2007 |
5,343 |
3,059 |
2,284 |
|
2008 |
5,672 |
3,182 |
2,490 |
|
2009 |
5,576 |
2,531 |
3,045 |
|
2010 |
6,385 |
2,703 |
3,682 |
|
2011 |
7,360 |
2,973 |
4,387 |
|
2012 |
8,219 |
3,104 |
5,115 |
|
2013 |
11,516 |
7,034 |
4,482 |
|
2014 |
12,446 |
5,479 |
6,967 |
|
2015 |
12,446 |
6,626 |
5,820 |
|
2016 |
14,312 |
8,421 |
5,891 |
|
2017 |
14,365 |
8,908 |
5,457 |
|
2018 |
24,156 |
22,980 |
1,176 |
|
2019 |
19,219 |
25,450 |
-6,231 |
|
2020 |
29,374 |
37,173 |
-7,799 |
|
2021 |
31,392 |
36,707 |
-5,315 |
|
2022 |
27,978 |
36,777 |
-8,699 |
|
2023 |
29,445 |
37,433 |
-7,987 |
|
Source:
Annual Report, 1999-2023 |
|||
Financially, this company has grown in positive trends. Based on
the conditions of Assets, liabilities, and equities, the company showed
relatively positive. In 1998, the assets of the company were just USD 992 million. After
more than 20 years, in 2023, Starbucks’ total
assets have grown into USD 29 billion. It increases more than 20 times.
The Liabilities, by the way, have also advanced performance. In the year 1998, the liabilities of
Starbucks were just USD 198 million, and it increased to USD 37 billion in
2023. Because the advancement of the liabilities is bigger than the assets, it
puts the total equity of the company in the last 5 years in a negative
condition. The downfall of equities value started in 2018, and it became bigger
and bigger until 2023.
The Revenue and Net Income of Starbucks
|
|
||
|
Years |
Total
Revenue |
Net
Income |
|
|
million US Dollars |
million US Dollars |
|
1997 |
975 |
55 |
|
1998 |
1,308 |
68 |
|
1999 |
1,680 |
101 |
|
2000 |
2,177 |
94 |
|
2001 |
2,648 |
181 |
|
2002 |
3,288 |
212 |
|
2003 |
4,075 |
268 |
|
2004 |
5,294 |
388 |
|
2005 |
6,369 |
494 |
|
2006 |
7,786 |
564 |
|
2007 |
9,411 |
672 |
|
2008 |
10,383 |
315 |
|
2009 |
9,774 |
390 |
|
2010 |
10,707 |
945 |
|
2011 |
11,700 |
1,245 |
|
2012 |
13,299 |
1,383 |
|
2013 |
14,892 |
8.3 |
|
2014 |
16,447 |
2,068 |
|
2015 |
19,162 |
2,757 |
|
2016 |
21,315 |
2,817 |
|
2017 |
22,386 |
2,884 |
|
2018 |
24,719 |
4,518 |
|
2019 |
26,508 |
3,599 |
|
2020 |
23,518 |
928 |
|
2021 |
29,060 |
4,199 |
|
2022 |
32,250 |
3,281 |
|
2023 |
35,975 |
4,124 |
|
Source:
Annual Report, 1999-2023 |
||
In the business performance annually from 1997 to 2023, this
company has positive performance from time to time. They can gain a net
income consistently. In 1997, the company’s revenue was just USD 975 million, and its
Net income reached USD 55 million. After the growth of Starbucks from
time to time, in 2023, the company’s revenue reached USD 35 billion, and
successfully generated net income reached USD 4.1 billion. Overall, the company’s
revenue in 2023 is 30 times greater than the
company’s revenue in 1997. The net income of 2023 is too, with an increasing value
around 100 times than 1997.
Based on some financial indicators, the value of Net Profit Margin (NPM) is also at a consistent level, with levels around from 0% to 18%. This company showed consistent net income from 1998 to 2023. Based on the return of assets (ROA), this company also has ratios around 0-22%. In terms of the ROE, the company has a ratio of negative to positive value. The high divergence of the value is due to the negative value of equities in 2019, 2020, 2021, 2022 and 2023. These ratios (NPM, ROE, and ROA) can describe the efficiency of the company in running its business. The higher percentage of these indicators showed the more efficiently the company in running its business.
,%20ReturnonEquity%20(ROE),%20and%20NetProfitMargin%20(NPM)%20of%20Starbukcs.jpg "The ROA, ROE, and NPM of Starbucks Coffee")
Bibliography of Starbucks Financial Performance from Time to Time
Starbucks. 2024. Investor Relations. Accessed via
https://investor.starbucks.com/ir-home/default.aspx on July 5th, 2024.
Starbucks. 2024. Annual Report. Accessed via
https://investor.starbucks.com/financial-data/annual-reports/default.aspx
on July 5th, 2024.
Yahoo Finance. 2023. Top Institutional Holders. Available at: https://finance.yahoo.com/quote/SBUX/holders/