Starbucks Corporation (SBUX)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	7.57	7.56	7.99	7.23	6.50	6.30	5.91	5.56	5.53	6.03	6.85	6.76	6.69	6.69	7.00	6.97	5.98	7.25	8.19	7.92
Receivables turnover	29.80	32.90	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
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
Working capital turnover	—	—	—	—	—	—	—	—	—	—	—	18.11	205.59	50.26	48.92	51.17	—	—	—	—

The inventory turnover ratio for Starbucks Corporation has been relatively stable over the past few quarters, averaging around 6.5 to 7.5 times. This indicates that Starbucks is efficiently managing its inventory and turning it over frequently throughout the year.

The receivables turnover ratio shows a decreasing trend in recent quarters, with a peak of around 32.9 in March 2024. This decrease suggests that Starbucks may be taking longer to collect payments from customers, which could potentially impact its cash flow and liquidity.

The payables turnover ratio for Starbucks has also been fairly consistent, ranging from 8.4 to 9.8 times. A higher payables turnover ratio signifies that Starbucks is efficiently managing its trade payables by paying its bills in a timely manner.

The working capital turnover ratio, while not available for most quarters, shows a significant increase in December 2022 and subsequent quarters. This indicates an improvement in Starbucks' ability to generate revenue relative to its working capital, which is a positive sign of operational efficiency.

Overall, based on these activity ratios, Starbucks appears to be effectively managing its inventory and payables, but may need to focus on improving its receivables turnover to enhance cash flow management.

Average number of days

		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
Days of inventory on hand (DOH)	days	48.19	48.30	45.66	50.46	56.19	57.92	61.79	65.66	66.02	60.57	53.27	54.01	54.55	54.57	52.16	52.39	61.06	50.34	44.56	46.10
Days of sales outstanding (DSO)	days	12.25	11.09	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
Number of days of payables	days	43.26	41.19	40.51	43.14	42.52	41.51	39.89	43.48	46.12	41.94	41.95	40.80	39.71	37.52	37.24	33.70	33.19	33.65	34.34	35.86

Based on the activity ratios of Starbucks Corporation for the past several quarters, we can observe the following trends:

1. Days of inventory on hand (DOH):
- The DOH shows the number of days that a company's current inventory levels will last. Starbucks has been able to maintain relatively stable DOH levels over the quarters, ranging from around 45 to 65 days. It indicates that Starbucks manages its inventory efficiently, balancing the level of inventory to meet demand without excessive stockpiling.

2. Days of sales outstanding (DSO):
- DSO measures the average number of days it takes for a company to collect payment after making a sale. Starbucks has exhibited fluctuations in DSO over the quarters, with some periods showing fluctuating days as well as periods where data is not available. A lower DSO indicates that Starbucks is efficient in collecting payments from customers, which is beneficial for cash flow management.

3. Number of days of payables:
- This ratio shows how long a company takes to pay its suppliers. Starbucks has maintained a consistent range of days of payables, with slight variations from quarter to quarter. The stability in this ratio suggests that Starbucks has maintained good relationships with its suppliers and is able to manage its payments effectively.

Overall, based on the activity ratios analyzed, Starbucks Corporation demonstrates efficient inventory management, effective receivables collection processes, and stable payables management practices. These factors are crucial for maintaining liquidity, managing working capital efficiently, and sustaining a healthy cash flow position.

Long-term

	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
Fixed asset turnover	4.17	4.67	4.82	4.87	4.96	4.99	4.91	4.92	4.99	4.85	4.75	4.56	4.41	3.89	3.75	3.77	3.82	4.17	4.22	4.12
Total asset turnover	1.15	1.24	1.26	1.22	1.22	1.19	1.16	1.15	1.14	1.08	1.05	0.93	0.92	0.84	0.77	0.80	0.83	0.97	0.97	1.38

The fixed asset turnover ratio for Starbucks Corporation has been relatively stable over the past few years, ranging between 3.75 and 4.99. This indicates that, on average, the company generates between 3.75 and 4.99 dollars in revenues for every dollar invested in fixed assets.

The total asset turnover ratio has shown some fluctuations but generally hovers around 1.05 to 1.26, with a few outliers. This suggests that Starbucks generates between 1.05 and 1.26 dollars in revenue for every dollar invested in total assets.

Overall, both ratios indicate that Starbucks efficiently utilizes its assets to generate sales, with the fixed asset turnover showing consistent performance and the total asset turnover demonstrating reasonable efficiency in asset utilization.