Starbucks Corporation (SBUX)
Cash ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,551,500 | 2,818,400 | 6,455,700 | 4,350,900 | 2,686,600 |
| Short-term investments | US$ in thousands | 401,500 | 364,500 | 162,200 | 281,200 | 70,500 |
| Total current liabilities | US$ in thousands | 9,345,300 | 9,151,800 | 8,151,400 | 7,346,800 | 6,168,700 |
| Cash ratio | 0.42 | 0.35 | 0.81 | 0.63 | 0.45 |
September 30, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,551,500K
+ $401,500K)
÷ $9,345,300K
= 0.42
The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover liabilities, while a lower ratio may indicate potential liquidity challenges.
Starbucks Corporation's cash ratio has fluctuated over the past five years, ranging from 0.35 to 0.81. In the most recent fiscal year ending September 30, 2023, the cash ratio stood at 0.42. This indicates that for every $1 of short-term liabilities, Starbucks had $0.42 in cash and cash equivalents available to cover those obligations.
Compared to the previous year, the cash ratio increased from 0.35 to 0.42, suggesting an improvement in Starbucks' liquidity position. However, the ratio is lower than the peak of 0.81 in 2021, indicating a relatively weaker liquidity position in the current year.
Overall, Starbucks Corporation's cash ratio of 0.42 in 2023 suggests that the company may have moderate liquidity to meet its short-term obligations. It is essential for investors and stakeholders to closely monitor changes in the cash ratio over time to assess Starbucks' liquidity health and ability to weather potential financial challenges.
Peer comparison
Sep 30, 2023