Starbucks Corporation (SBUX)

Days of inventory on hand (DOH)

Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019
Inventory turnover 7.23 5.56 6.76 6.30 7.92
DOH days 50.46 65.66 54.01 57.90 46.10

September 30, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 7.23
= 50.46

The days of inventory on hand (DOH) for Starbucks Corporation has shown fluctuations over the past five years. In 2023, Starbucks had an average of 50.46 days worth of inventory on hand, indicating that it takes approximately 50.46 days for the company to sell its existing inventory. This represents an improvement from the previous year, where the DOH was higher at 65.66 days.

Comparing the current DOH with historical data, Starbucks has shown variability in managing its inventory levels. In 2021 and 2020, the DOH was 54.01 days and 57.90 days, respectively, suggesting that the company was holding inventory for a shorter period compared to 2019 when the DOH was 46.10 days.

A decreasing trend in DOH from 2022 to 2023 indicates that Starbucks has been more efficient in managing its inventory, potentially leading to cost savings and better cash flow management. However, it is crucial to monitor this ratio continually to ensure optimal inventory management and operational efficiency in the future.


Peer comparison

Sep 30, 2023

Company name
Symbol
DOH
Starbucks Corporation
SBUX
50.46
Shake Shack Inc
SHAK
3.54
The Wendy’s Co
WEN
2.06

See also:

Starbucks Corporation Average Inventory Processing Period