Free cash flow generation has exhibited extreme volatility, swinging from a $1.8 billion peak in 2024Q1 to negative territory in 2025Q2, complicating the sustainability of its $706.3 million quarterly dividend payment.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Cash from Operations | 4.35B | 4.75B | 6.1B | 6.01B | 4.4B | 5.99B | 1.6B | 5.05B | 11.94B | 4.17B | 4.58B | 3.75B | 607.8M | 2.91B | 1.72B | 1.61B | 1.7B | 1.39B | 1.26B | 1.33B | 1.13B | 923.61M | 793.85M | 566.45M | 477.69M | 460.83M | 318.57M | 210.6M | 142.9M | 101M | 136.7M |
| Operating CF Margin % | - | 12.77% | 16.85% | 16.7% | 13.63% | 20.61% | 6.79% | 19.04% | 48.29% | 18.65% | 21.46% | 19.56% | 3.7% | 19.56% | 12.95% | 13.78% | 15.92% | 14.21% | 12.12% | 14.14% | 14.53% | 14.5% | 14.99% | 13.9% | 14.52% | 17.4% | 14.69% | 12.53% | 10.92% | 10.35% | 19.59% |
| Operating CF Growth % | -48.1% | -22.12% | 1.45% | 36.65% | -26.58% | 274.83% | -68.34% | -57.72% | 185.98% | -8.76% | 22.03% | 516.83% | -79.1% | 69.14% | 6.64% | -5.43% | 22.74% | 10.35% | -5.45% | 17.64% | 22.52% | 16.35% | 40.15% | 18.58% | 3.66% | 44.65% | 51.27% | 47.38% | 41.49% | -26.12% | 1099.12% |
| Net Income | 1.5B | 1.86B | 3.76B | 4.12B | 3.28B | 4.2B | 924.7M | 3.59B | 4.52B | 2.88B | 2.82B | 2.76B | 2.07B | 8.8M | 1.38B | 1.25B | 948.3M | 390.8M | 315.5M | 672.64M | 564.26M | 494.47M | 391.77M | 268.35M | 215.07M | 181.21M | 94.56M | 101.7M | 68.4M | 57.4M | 42.1M |
| Depreciation & Amortization | 4.42B | 2.61B | 1.59B | 1.45B | 1.53B | 1.52B | 1.5B | 1.45B | 1.31B | 1.07B | 1.03B | 933.8M | 748.4M | 655.6M | 580.6M | 550M | 540.8M | 563.3M | 604.5M | 491.89M | 414.64M | 367.21M | 304.82M | 259.27M | 221.14M | 177.09M | 142.17M | 107.5M | 80.9M | 58.2M | 39.4M |
| Stock-Based Compensation | 285.3M | 318.3M | 308.3M | 302.7M | 271.5M | 319.1M | 248.6M | 308M | 250.3M | 176M | 218.1M | 209.8M | 183.2M | 142.3M | 153.6M | 145.2M | 113.6M | 83.2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -2.56B | -90.6M | -13.8M | -59.4M | -37.8M | -146.2M | -25.8M | -1.5B | 714.9M | 95.1M | 265.7M | 21.2M | 10.2M | -1.05B | 61.1M | 106.2M | -42M | -69.6M | -117.1M | -37.33M | -84.32M | -31.25M | -3.07M | -22.81M | -6.09M | -6.07M | -18.25M | 800K | 2.1M | 5.3M | 4.4M |
| Other Non-Cash Items | 2.49B | 1.55B | 1.5B | 1.32B | 1.48B | 593M | 1.62B | -458.2M | -1.76B | -138.5M | -110.7M | -453.8M | -191.9M | 2.67B | -25.7M | -188.9M | 11.8M | 190.5M | 389.1M | 44.55M | 75.69M | 121.52M | 55.19M | 27.56M | 35.72M | 29.17M | 80.54M | 200K | 100K | 3.8M | 100K |
| Working Capital Changes | -1.78B | -1.49B | -1.05B | -1.13B | -2.13B | -501.2M | -2.68B | 1.65B | 6.91B | 89.7M | 353M | 278.8M | -2.21B | 476.7M | -434.8M | -248.1M | 132.4M | 230.8M | 75.5M | 159.29M | 221.94M | -28.33M | 45.14M | 34.09M | 11.84M | 79.43M | 19.55M | 300K | -17M | -23.7M | 57.6M |
| Change in Receivables | -190.1M | -89.7M | 18.4M | -4.1M | -326.1M | -43M | -2.7M | -197.7M | 131M | -96.8M | -55.6M | -82.8M | -79.7M | -68.3M | -90.3M | -88.7M | 11.3M | 73.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Inventory | -217.8M | -408.4M | 42.8M | 366.4M | -641M | -49.8M | -10.9M | -173M | -41.2M | 14M | -67.5M | -207.9M | 14.3M | 152.5M | -273.3M | -422.3M | 123.2M | 28.5M | -600K | -48.58M | -85.53M | -121.62M | -77.66M | -64.77M | -41.38M | -19.7M | -19.5M | -36.4M | -23.5M | -36.2M | 40.3M |
| Change in Payables | -119.8M | 261M | 28M | 100.1M | 345.5M | 189.9M | -210.8M | 31.9M | 391.6M | 46.4M | 46.9M | 137.7M | 60.4M | 88.7M | -136M | 227.5M | -3.6M | -53M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.64B | -2.49B | -2.7B | -2.27B | -2.15B | -319.5M | -1.71B | -1.01B | -2.36B | -850M | -2.22B | -1.52B | -817.7M | -1.41B | -974M | -1.02B | -789.5M | -421.1M | -1.09B | -1.2B | -841.04M | -221.31M | -632.19M | -499.26M | -485.34M | -433.05M | -373.23M | -336.3M | -148.8M | -187M | -211.2M |
| Capital Expenditures | -1.62B | -2.31B | -2.78B | -2.33B | -1.84B | -1.47B | -1.48B | -1.81B | -1.98B | -1.52B | -1.44B | -1.3B | -1.16B | -1.15B | -856.2M | -531.9M | -440.7M | -445.6M | -984.5M | -1.08B | -771.23M | -643.99M | -386.18M | -357.28M | -375.47M | -384.21M | -316.45M | -277.4M | -201.9M | -169.7M | -161.8M |
| CapEx % of Revenue | 4.21% | 6.2% | 7.68% | 6.49% | 5.71% | 5.06% | 6.31% | 6.82% | 8% | 6.79% | 6.76% | 6.8% | 7.06% | 7.74% | 6.45% | 4.55% | 4.12% | 4.56% | 9.48% | 11.48% | 9.9% | 10.11% | 7.29% | 8.77% | 11.42% | 14.5% | 14.59% | 16.51% | 15.43% | 17.4% | 23.18% |
| Acquisitions | 0 | -177.1M | 0 | 0 | 59.3M | 1.18B | 0 | 684.3M | -703.1M | 85.4M | 69.6M | -275.4M | 103.9M | -502.4M | -129.1M | -55.8M | -12M | 0 | -74.2M | -53.29M | -91.73M | -21.58M | -7.51M | -69.93M | 0 | 0 | -13.52M | 3.9M | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -124.2M | -62.1M | -72.7M | 53.9M | -126.3M | -81.2M | -44.4M | -56.2M | 5.6M | 54.3M | 24.9M | 6.8M | -19.1M | -11.9M | -36.5M | 117.4M | 209.9M | 42.5M | 0 | 0 | -39.2M | -7.92M | -26.42M | -18.29M | 6.99M | -5.08M | -32.75M | -28.7M | -12.7M | 145M | -5.6M |
| Cash from Financing | -3.31B | -2.3B | -3.72B | -2.99B | -5.64B | -3.65B | 1.71B | -10.06B | -3.24B | -3B | -1.75B | -2.26B | -623.3M | -108.2M | -714.7M | -608M | -346M | -642.2M | -184.5M | -171.89M | -155.33M | -673.83M | -66.55M | 30.76M | 67.43M | 14.82M | 59.35M | 90.5M | 37.6M | 29.9M | 179.8M |
| Debt Issued (Net) | -500.1M | 493.1M | 136.5M | 358.6M | 673.1M | -1.68B | 5.17B | 1.65B | 5.58B | 350.2M | 1.25B | 238.4M | 748.5M | 714.5M | -30.8M | 30.8M | 0 | -713.8M | 1.6M | 558.42M | 422.1M | 276.26M | -722K | -710K | 12.21M | 4.97M | -9.37M | 28.3M | 2.8M | 10.7M | 160.1M |
| Equity Issued (Net) | 69.1M | 77M | -1.16B | -817M | -3.91B | 246.2M | -1.4B | -9.81B | -6.98B | -1.89B | -1.83B | -1.24B | -618.9M | -340.9M | -312.5M | -320.5M | -152.8M | 57.3M | -199.1M | -819.86M | -694.8M | -950.09M | -65.82M | 31.47M | 55.22M | 9.85M | 68.72M | 43.2M | 25.4M | 17.6M | 12.4M |
| Dividends Paid | -2.8B | -2.77B | -2.58B | -2.43B | -2.26B | -2.12B | -1.92B | -1.76B | -1.74B | -1.45B | -1.18B | -928.6M | -783.1M | -628.9M | -513M | -389.5M | -171M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -1.27B | -984.4M | -4.01B | 0 | -1.7B | -10.22B | -7.13B | -2.04B | -2B | -1.44B | -758.6M | -588.1M | -549.1M | -555.9M | -285.6M | 0 | -311.4M | -996.8M | -854.04M | -1.11B | -203.41M | -75.71M | -52.25M | -49.79M | 0 | 0 | 0 | 0 | 0 |
| Other Financing | -80.4M | -96.7M | -111M | -100.4M | -136.4M | -97M | -129.6M | -129.1M | -103.9M | -9.7M | 8.4M | -322M | 30.2M | 147.1M | 110.8M | 98.7M | -22.2M | 14.3M | 13M | 89.55M | 117.37M | 0 | 0 | 0 | 0 | 0 | 0 | 19M | 9.4M | 1.6M | 7.3M |
| Net Change in Cash | -1.14B | -66.4M | -265.3M | 733.1M | -3.64B | 2.1B | 1.66B | -6.07B | 6.29B | 333.5M | 598.7M | -178.3M | -867.3M | 1.39B | 40.5M | -15.9M | 564.2M | 330M | -11.5M | -31.34M | 138.8M | 28.76M | 98.22M | 101.23M | 61.34M | 42.42M | 4.4M | -35.3M | 31.6M | 29.9M | 179.8M |
| Free Cash Flow | 2.73B | 2.44B | 3.32B | 3.68B | 2.56B | 4.52B | 114.2M | 3.24B | 9.96B | 2.65B | 3.13B | 2.45B | -553.1M | 1.76B | 863.3M | 1.08B | 1.26B | 943.4M | 274.2M | 250.87M | 360.4M | 279.62M | 407.67M | 209.16M | 102.21M | 76.61M | 2.12M | -66.8M | -59M | -68.7M | -25.1M |
| FCF Margin % | 7.09% | 6.57% | 9.17% | 10.22% | 7.93% | 15.55% | 0.49% | 12.22% | 40.3% | 11.86% | 14.71% | 12.76% | -3.36% | 11.82% | 6.5% | 9.23% | 11.81% | 9.65% | 2.64% | 2.67% | 4.63% | 4.39% | 7.7% | 5.13% | 3.11% | 2.89% | 0.1% | -3.98% | -4.51% | -7.04% | -3.6% |
| FCF Growth % | -1.42% | -26.4% | -9.71% | 43.78% | -43.44% | 3857.18% | -96.48% | -67.47% | 275.21% | -15.31% | 28.19% | 542.13% | -131.48% | 103.53% | -20.1% | -14.53% | 34% | 244.06% | 9.3% | -30.39% | 28.89% | -31.41% | 94.9% | 104.64% | 33.42% | 3506.92% | 103.18% | -13.22% | 14.12% | -173.71% | 78.73% |
| FCF per Share | 2.38 | 2.14 | 2.92 | 3.19 | 2.21 | 3.81 | 0.10 | 2.63 | 7.14 | 1.82 | 2.11 | 1.62 | -0.36 | 1.15 | 0.56 | 0.70 | 0.83 | 0.63 | 0.18 | 0.16 | 0.23 | 0.17 | 0.25 | 0.13 | 0.06 | 0.05 | 0.00 | -0.05 | -0.04 | -0.05 | -0.02 |
| FCF Conversion (FCF/Net Income) | 1.82x | 2.56x | 1.62x | 1.46x | 1.34x | 1.43x | 1.72x | 1.40x | 2.64x | 1.45x | 1.62x | 1.36x | 0.29x | 350.40x | 1.24x | 1.29x | 1.80x | 3.55x | 3.99x | 1.98x | 2.01x | 1.87x | 2.04x | 2.11x | 2.22x | 2.54x | 3.37x | 2.07x | 2.09x | 1.83x | 3.28x |
| Interest Paid | -122.2M | 588.3M | 570.7M | 524.3M | 474.7M | 501.1M | 396.9M | 299.5M | 137.1M | 96.6M | 74.7M | 69.5M | 56.2M | 34.4M | 34.4M | 34.4M | 32M | 39.8M | 52.7M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | -233.6M | 715.6M | 1.37B | 1.29B | 1.16B | 756.3M | 1.7B | 470.1M | 1.18B | 1.39B | 878.7M | 1.07B | 766.3M | 539.1M | 416.9M | 350.1M | 527M | 162M | 259.5M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Operational complexity and margin compression
As reported in financial statements, the OCF/NI ratio has fluctuated wildly, reaching a low of 0.66 in 2024Q2 and a high of 10.38 in 2025Q4, which suggests that reported net income is an unreliable proxy for the company's actual ability to generate cash from core operations.
The significant divergence between net income and operating cash flow indicates that non-cash charges and working capital volatility are heavily distorting the bottom line. Investors should monitor whether this disconnect reflects genuine operational inefficiencies or merely the accounting impact of the company's complex, high-volume retail model.
Based on recent SEC filings, Starbucks' free cash flow has exhibited extreme instability, swinging from a peak of $1.8 billion in 2024Q1 to negative territory in 2025Q2, highlighting a precarious trajectory that complicates the company's ability to sustain its historical capital return programs.
The erratic nature of FCF margins suggests that the company's current cost structure is highly sensitive to operational disruptions. This volatility may indicate that the business is struggling to balance necessary store-level investments with the cash requirements of its dividend obligations.
According to the provided data, CapEx as a percentage of revenue has remained elevated, peaking at 8.8% in 2024Q4, which suggests that the company is forced to commit significant capital to maintain its physical footprint and digital infrastructure despite slowing growth in mature markets.
High capital intensity relative to revenue may imply that the company is facing diminishing returns on its store-level investments. This persistent spending requirement appears to be a primary factor in the compression of free cash flow, warranting further investigation into the efficiency of recent capital allocation.
As indicated by the quarterly cash flow data, working capital changes have frequently been a significant cash drain, including a $1.1 billion outflow in 2024Q2, which suggests that the company is struggling to manage its inventory and payables cycle effectively in the current environment.
The recurring negative impact of working capital on operating cash flow may indicate inefficiencies in supply chain management or inventory buildup. This trend appears to be a structural headwind that consistently consumes liquidity that would otherwise be available for debt reduction or shareholder returns.
Based on reported figures, the company has continued to prioritize dividend payments of approximately $700 million per quarter despite significant FCF volatility, a strategy that appears increasingly difficult to reconcile with the company's strained cash flow generation and negative book value of equity.
The commitment to dividends while FCF is inconsistent suggests a management focus on shareholder optics that may be at odds with the company's underlying financial health. Investors should monitor whether this deployment strategy is sustainable without further increasing the company's leverage profile.
Quick answers to the most common questions about buying SBUX stock.
Starbucks Corporation (SBUX) generated $4.75B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Starbucks Corporation (SBUX) generated $2.44B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Starbucks Corporation (SBUX) spent $2.31B on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Starbucks Corporation (SBUX) returned $2.77B to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.