Starbucks Corporation (SBUX)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 31.49 | 30.38 | 30.71 | — | — | 26.80 | — | — | — | 30.25 | 27.70 | 22.48 | 18.98 | 18.53 | 18.36 | 20.02 | 25.71 | 25.11 | 29.02 | 28.39 | |
| DSO | days | 11.59 | 12.01 | 11.89 | — | — | 13.62 | — | — | — | 12.07 | 13.18 | 16.24 | 19.23 | 19.69 | 19.89 | 18.23 | 14.20 | 14.54 | 12.58 | 12.86 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 31.49
= 11.59
To analyze Starbucks Corp.'s days of sales outstanding (DSO), we will examine the trend of DSO over the past eight quarters. DSO represents the average number of days it takes for a company to collect payment after a sale has been made.
The trend indicates that Starbucks' DSO has fluctuated over the period, with a general increase from 11.59 days at the end of December 2022 to 14.94 days at the end of April 2022. This suggests that, on average, it took longer for Starbucks to collect sales proceeds during this period.
A rising DSO could potentially signal inefficiencies in the company's accounts receivable management or an increase in the credit term offered to customers. This could tie up cash flow and increase the risk of bad debt.
It would be beneficial to monitor and further investigate the reasons behind this trend to identify any potential concerns or opportunities for improvement in the company's working capital management.
Peer comparison
Dec 31, 2023
See also:
Starbucks Corporation Average Receivable Collection Period (Quarterly Data)