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 around 84 counties and 33 thousand locations of branch stores while 15,444 of its stores were located in the United States. Operationally, this company 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 of assets and revenue annually.
The Assets, Liabilities, and Equities of Starbucks
| Years | Assets | Liabilities | Equities |
|---|---|---|---|
| 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 |
| Source : Annual Report, 1999-2021 | |||
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 are just 992 million US Dollars. After more than 20 years, exactly, in 2021, Starbucks ‘assets become 31 billion US Dollars. It increases more than 20 times. The Liabilities, by the way, have also in advanced performance. in 1998, the liabilities of Starbucks were just 198 million US. Dollars and it increased to 36 billion US. Dollars in 2021. The Advancement of the liabilities is bigger than the assets. In these conditions, It makes the equities of the company in the last 3 years in negative conditions. The downfall of Equities value started in 2018, and it became bigger and bigger until 2021.
The Revenue and Net Income of Starbucks
| Years | 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 |
| Source : Annual Report, 1999-2021 | ||
In the business performance annually from 1997 to 2021, this company has positive performance from time to time. They can gain a net income consistently. In 1997, the company’s revenue is just 975 million US dollars and its Net income reached 55 million US Dollars. After the growth of Starbucks from time to time, in 2021, the company’s revenue reached 29 billion U.S. Dollars, and its net income reached 4.1 billion U.S. Dollars. Overall, the company’s revenue in 2021 is greater 30 times than the company’s revenue in 1997. The Net income of 2021 is too with the increasing value around 100 times than 1997.
Based on some financial indicators, the value of NPM is also at a consistent level, with levels around 0% to 18%. This company showed consistently in getting net income from 1998 to 2021. Based on the return of assets (ROA), this company also has ratios around 0- 9%. Based on the ROE, the company has a ratio is in negative to positive value. The high divergence of the value is due to the negative value of equities in 2019, 2020, and 2021. 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.
Bibliography of Starbucks Financial Performance from Time to Time
Starbucks. 2022. Investor Relations. Accessed via https://investor.starbucks.com/ir-home/default.aspx on July 5th, 2022.
Starbucks. 2022. Annual Report. Accessed via https://investor.starbucks.com/financial-data/annual-reports/default.aspx on July 5th, 2022.
