Starbucks Corporation (SBUX)
Payables 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 |
| Payables | US$ in thousands | 1,544,300 | 1,441,400 | 1,211,600 | 997,900 | 1,189,700 |
| Payables turnover | 8.46 | 8.39 | 8.95 | 9.80 | 10.18 |
September 30, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $13,066,900K ÷ $1,544,300K
= 8.46
The payables turnover ratio for Starbucks Corporation has been gradually decreasing over the past five years, from 10.18 in 2019 to 8.46 in 2023. This indicates that the company is taking longer to pay its suppliers in recent years. A lower payables turnover ratio may suggest that Starbucks is holding onto its accounts payables for a longer period before settling them. This could potentially signal cash flow or liquidity issues within the company. It is important for Starbucks to closely monitor and manage its payables turnover ratio to ensure efficient working capital management and healthy vendor relationships.
Peer comparison
Sep 30, 2023