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

Company name
Symbol
Payables turnover
Starbucks Corporation
SBUX
8.46
Shake Shack Inc
SHAK
24.99
The Wendy’s Co
WEN
43.41

See also:

Starbucks Corporation Payables Turnover