Aureus
FRed Flag

Starbucks Corporation(SBUX)

F

Financial data as of Sep 30, 2025Improving · Consumer Discretionary

FCF Margin5.7%Free Cash Flow / Revenue
Cash Conversion255.7%Operating CF / Net Income
Free Cash Flow$2.4B
Revenue$37.2B
Net Cash-$23.4BNet debt position
Debt / FCF12.5xElevated debt burden
Current Ratio0.72Tight short-term liquidity
YoY FCF Growth+99.6%3 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseD
→
-2Very high debt-to-FCF ratio (12.5x)
→
-1Current ratio below 1.0 (0.72)
→
+1Strong YoY FCF growth (99.6% YoY)
→
-0.5Highly volatile FCF (consistency: 1.39)
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (256%)
  • Strong YoY FCF growth (+99.6%)

Concerns

  • Low FCF margin (5.7%)
  • Heavy debt position ($23.4B net debt, 12.5x FCF)
  • High debt-to-FCF ratio (12.5x)
  • Current ratio below 1.0 — tight short-term liquidity
  • Only 3 positive FCF quarters recently
  • Highly volatile quarterly FCF
SBC-adjusted FCF used — $0.3B stock-based compensation (13% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin5.7%
Net Margin5.0%
Operating CF Margin12.8%
CapEx Ratio6.2%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$23.4BNet debt position
Debt / FCF12.5xElevated debt burden
Current Ratio0.72Tight liquidity
Debt / Equity0.00Low leverage

Quarterly FCF Trend

+99.6% YoYImproving (+99.6%)

Free cash flow per quarter

Sector Comparison — Consumer Discretionary

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameStarbucks Corporation
SectorConsumer Discretionary
Free Cash Flow$2.4B
Revenue$37.2B
Net Income$1.9B
Operating Cash Flow$4.7B
Capital Expenditure$2.3B
FCF Margin5.7%
Cash Conversion Rate255.7%
Net Margin5.0%
Total Debt$26.6B
Total Cash$3.2B
Net Cash-$23.4B
Current Ratio0.72
Debt / Equity0.00
Debt / FCF12.5x
YoY FCF Growth+99.6%
Positive Quarters3 of 5
Trend DirectionImproving
Report DateSep 30, 2025
GradeF
Data SourceYahoo Finance

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