The business behind the dividend
| Measure | SBUX | Median | Formula |
|---|---|---|---|
| Return on equity | — | — | Net income ÷ shareholders’ equity |
| Return on capital employed | 36.8% | 10.1% | Operating income ÷ (equity + total debt) |
| Owner earnings | $1.32bn | $632.00m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $2.44bn | $746.10m | Operating cash flow − capital expenditure |
| Operating margin | 7.9% | 15.0% | Operating income ÷ revenue |
| Net margin | 5.0% | 10.2% | Net income ÷ revenue |
| Debt to equity | — | — | Total debt ÷ shareholders’ equity |
| Interest cover | 5.41x | 4.43x | Operating income ÷ interest expense |
| Current ratio | 0.72x | 1.25x | Current assets ÷ current liabilities |
| Long-term debt to working capital | — | — | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 2.56x | 1.78x | Operating cash flow ÷ net income |
Not computed here: Debt to equity, Long-term debt to working capital, Return on equity — why a blank is not a zero.
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | — | — | — | — | — | — | — | 386.3% | 52.9% | 47.9% | 52.9% |
| Return on capital employed | 36.8% | 66.6% | 79.6% | 74.9% | 52.4% | 19.3% | 82.6% | 36.6% | 44.1% | 44.1% | 44.1% |
| Operating margin | 7.9% | 15.0% | 16.3% | 14.3% | 16.8% | 6.6% | 15.4% | 15.7% | 18.5% | 19.6% | 15.4% |
| Net margin | 5.0% | 10.4% | 11.5% | 10.2% | 14.5% | 3.9% | 13.6% | 18.3% | 12.9% | 13.2% | 11.5% |
| Debt to equity | — | — | — | — | — | — | — | 8.07x | 0.72x | 0.61x | 0.72x |
| Current ratio | 0.72x | 0.75x | 0.78x | 0.77x | 1.20x | 1.06x | 0.92x | 2.20x | 1.25x | 1.05x | 0.92x |
| Cash conversion | 2.56x | 1.62x | 1.46x | 1.34x | 1.43x | 1.72x | 1.40x | 2.64x | 1.47x | 1.67x | 1.47x |
How it compares in consumer discretionary
Among the 44 consumer discretionary companies here measured on free cash flow, Starbucks pays out less than 1 of them. The median for that group is 37.5%, against this company’s 113.5%.
Closest on free cash flow
- Dillard'S (DDS) 77.8%
- Amcor (AMCR) 97.2%
- Dick'S Sporting Goods (DKS) 103.4%
- Nike (NKE) 110.2%
Same sector and same denominator, so the figures are comparable. All 48 in consumer discretionary →