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