Starbucks Corporation (SBUX)
Receivables turnover
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 35,975,600 | 32,250,300 | 29,060,600 | 23,518,000 | 26,508,600 |
| Receivables | US$ in thousands | 1,184,100 | 1,203,200 | 960,700 | 1,269,000 | 1,055,800 |
| Receivables turnover | 30.38 | 26.80 | 30.25 | 18.53 | 25.11 |
September 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $35,975,600K ÷ $1,184,100K
= 30.38
The receivables turnover ratio for Starbucks Corporation has shown some variability over the past five years. In the most recent fiscal year ending September 30, 2023, the receivables turnover ratio increased to 30.38 from 26.80 in the previous year, indicating that Starbucks collected its receivables more efficiently during this period. The significant improvement in the receivables turnover ratio suggests that Starbucks was able to convert its accounts receivable into cash at a faster rate in 2023 compared to the prior year.
It is evident that Starbucks' management has been effective in managing its accounts receivable in recent years, as the receivables turnover ratio has been relatively high, signaling the company's ability to efficiently collect outstanding payments from customers. The upward trend in the receivables turnover ratio demonstrates the company's strong credit control and collection practices, which has resulted in quicker cash inflows from sales.
Overall, the increasing trend in Starbucks Corporation's receivables turnover ratio reflects the company's effective management of its accounts receivable, leading to improved liquidity and cash flow generation from its sales activities in recent years.
Peer comparison
Sep 30, 2023