Aureus
FRed Flag

Starbucks Corporation(SBUX)

F

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

FCF Margin6.6%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 / FCF10.9xElevated debt burden
Current Ratio0.72Tight short-term liquidity
YoY FCF Growth-7.6%4 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseC
→
-2Very high debt-to-FCF ratio (10.9x)
→
-1Current ratio below 1.0 (0.72)
→
-0.5Highly volatile FCF (consistency: 0.83)
→
FinalF

Analysis Summary

Strengths

  • Excellent cash conversion (256%)

Concerns

  • Low FCF margin (6.6%)
  • Heavy debt position ($23.4B)
  • High debt-to-FCF ratio (10.9x)
  • Current ratio below 1.0 — tight short-term liquidity
  • Highly volatile quarterly FCF

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin6.6%
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 / FCF10.9xElevated debt burden
Current Ratio0.72Tight liquidity
Debt / Equity0.00Low leverage

Quarterly FCF Trend

-7.6% YoYStable (-7.6%)

Free cash flow per quarter

Sector Comparison — Consumer Discretionary

FCF Margin ranked against sector peers

View all →

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 Margin6.6%
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 / FCF10.9x
YoY FCF Growth-7.6%
Positive Quarters4 of 5
Trend DirectionStable
Report DateSep 30, 2025
GradeF
Data SourceYahoo Finance

Related Research

All research →
Sector Report4 min read

Consumer Discretionary: Eleven A-Grades Built on Tourism

The sector looks healthy until you see what's propping it up.

Feb 13, 2026
ABNBBKNGMCDEA+11
Sector Report5 min read

Consumer Discretionary: A Sector Split in Half

Eleven A-grades at the top, nine F-grades at the bottom. The consumer discretionary sector isn't struggling. It's bifurcating.

Feb 13, 2026
ABNBBKNGMCDEA+8