Starbucks Corporation (SBUX)

Working capital 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
Total current assets US$ in thousands 7,303,400 7,018,700 9,756,400 7,806,400 5,653,900
Total current liabilities US$ in thousands 9,345,300 9,151,800 8,151,400 7,346,800 6,168,700
Working capital turnover 18.11 51.17

September 30, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $35,975,600K ÷ ($7,303,400K – $9,345,300K)
= —

The working capital turnover ratio measures the efficiency of a company in utilizing its working capital to generate sales revenue. A higher ratio indicates that the company is efficiently using its current assets and liabilities to support its sales activities.

In the case of Starbucks Corporation, the working capital turnover ratio has shown a significant decrease over the years. In 2021, the ratio was 18.11, which declined to 51.17 in 2020. The absence of data for 2023 and 2019 makes it challenging to track the trend accurately.

The considerable decrease in the working capital turnover ratio from 2020 to 2021 may suggest that Starbucks is not efficiently utilizing its working capital to generate sales compared to the previous year. This could be due to changes in the company's operating cycle, management of current assets and liabilities, or other internal factors affecting efficiency.

Further analysis and comparison with industry benchmarks or competitors' ratios would provide more insight into Starbucks' financial performance and efficiency in managing its working capital for revenue generation.


Peer comparison

Sep 30, 2023

Company name
Symbol
Working capital turnover
Starbucks Corporation
SBUX
Shake Shack Inc
SHAK
6.37
The Wendy’s Co
WEN
4.79

See also:

Starbucks Corporation Working Capital Turnover