Starbucks Corporation (SBUX)
Days of sales outstanding (DSO)
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 30.38 | 26.80 | 30.25 | 18.53 | 25.11 | |
| DSO | days | 12.01 | 13.62 | 12.07 | 19.69 | 14.54 |
September 30, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 30.38
= 12.01
The Days of Sales Outstanding (DSO) is a measure that indicates the average number of days it takes for a company to collect payment from its customers after making a sale. A lower DSO value is generally favorable as it signifies quicker collection of accounts receivable.
Looking at the historical trend of Starbucks Corporation's DSO, we observe fluctuations over the past five years:
- In Sep 2023, the DSO was 12.01 days, showcasing an improvement compared to the prior year.
- In Sep 2022, the DSO was 13.62 days, indicating a slightly longer period for collecting receivables.
- In Sep 2021, the DSO stood at 12.07 days, showing consistency with the previous year.
- In Sep 2020, the DSO increased significantly to 19.69 days, suggesting a slower collection of receivables compared to the previous year.
- In Sep 2019, the DSO was 14.54 days, indicating a moderate increase from the year before.
Overall, Starbucks Corporation has demonstrated some variability in its DSO over the past five years, with fluctuations in the efficiency of collecting payments from customers. It is essential for the company to effectively manage its accounts receivable turnover to ensure a healthy cash flow and working capital management. Further analysis and comparison with industry benchmarks can provide additional insights into the effectiveness of Starbucks Corporation's credit and collection policies.
Peer comparison
Sep 30, 2023