Starbucks Corporation (SBUX)
Inventory turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 13,066,900 | 12,100,300 | 10,839,100 | 9,780,300 | 12,109,800 |
| Inventory | US$ in thousands | 1,806,400 | 2,176,600 | 1,603,900 | 1,551,400 | 1,529,400 |
| Inventory turnover | 7.23 | 5.56 | 6.76 | 6.30 | 7.92 |
September 30, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $13,066,900K ÷ $1,806,400K
= 7.23
Inventory turnover is a key financial ratio that measures how efficiently a company is managing its inventory by indicating the number of times inventory is sold and replaced over a specific period. A higher inventory turnover ratio typically indicates that a company is selling its inventory quickly and efficiently.
Based on Starbucks Corporation's inventory turnover ratios from 2019 to 2023, we observe fluctuations in the efficiency of their inventory management. In 2019, the company had a relatively high inventory turnover of 7.92, suggesting strong sales and effective inventory control. However, in the following years, the inventory turnover ratio decreased to 6.30 in 2020, increased to 6.76 in 2021, and then further improved to 5.56 in 2022.
The most recent data for 2023 shows a notable increase in Starbucks Corporation's inventory turnover to 7.23, indicating that the company is managing its inventory more efficiently and selling products at a faster rate. This improvement suggests that Starbucks has been able to streamline its inventory processes, reduce excess stock levels, and optimize supply chain management.
Overall, Starbucks Corporation's inventory turnover ratios demonstrate variability over the years, but the recent increase in 2023 is a positive indicator of the company's improving inventory management efficiency and ability to convert inventory into sales effectively.
Peer comparison
Sep 30, 2023