Starbucks Corporation (SBUX)
Payables turnover
| Sep 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 13,461,800 | 13,180,500 | 13,160,000 | 13,066,900 | 12,907,100 | 12,608,300 | 12,334,800 | 12,100,300 | 11,791,300 | 11,570,500 | 11,217,600 | 10,839,200 | 10,359,300 | 10,056,300 | 10,297,100 | 10,808,400 | 9,467,500 | 10,820,400 | 11,539,200 | 12,109,900 |
| Payables | US$ in thousands | 1,595,500 | 1,487,400 | 1,460,700 | 1,544,300 | 1,503,500 | 1,434,000 | 1,348,200 | 1,441,400 | 1,489,800 | 1,329,500 | 1,289,400 | 1,211,600 | 1,127,000 | 1,033,600 | 1,050,600 | 997,900 | 860,800 | 997,700 | 1,085,600 | 1,189,700 |
| Payables turnover | 8.44 | 8.86 | 9.01 | 8.46 | 8.58 | 8.79 | 9.15 | 8.39 | 7.91 | 8.70 | 8.70 | 8.95 | 9.19 | 9.73 | 9.80 | 10.83 | 11.00 | 10.85 | 10.63 | 10.18 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $13,461,800K ÷ $1,595,500K
= 8.44
The payables turnover ratio for Starbucks Corporation has been fluctuating over the past few years. The ratio measures how quickly the company is able to pay off its suppliers and is calculated by dividing total purchases by average accounts payable.
From December 2019 to March 2020, the payables turnover ratio decreased from 10.18 to 9.80, indicating that Starbucks took slightly longer to pay off its suppliers during this period. However, there was then a notable increase in the ratio from March 2020 to September 2020, reaching 11.00, which suggests the company significantly improved its payment efficiency.
Subsequently, the ratio decreased steadily from September 2020 to June 2021, where it reached a low of 9.19. It then increased again, peaking at 9.73 in March 2022. Despite some fluctuations, the payables turnover ratio has generally remained above 8.00, indicating that Starbucks has been efficiently managing its accounts payable during the periods under review.
It is essential for Starbucks to carefully monitor its payables turnover ratio to ensure that it strikes the right balance between optimizing cash flow and maintaining healthy relationships with its suppliers.
Peer comparison
Sep 30, 2024