Starbucks Corporation (SBUX)
Cash ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 3,286,200 | 3,551,500 | 2,818,400 | 6,455,700 | 4,350,900 |
| Short-term investments | US$ in thousands | 257,000 | 401,500 | 364,500 | 162,200 | 281,200 |
| Total current liabilities | US$ in thousands | 9,070,000 | 9,345,300 | 9,151,800 | 8,151,400 | 7,346,800 |
| Cash ratio | 0.39 | 0.42 | 0.35 | 0.81 | 0.63 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($3,286,200K
+ $257,000K)
÷ $9,070,000K
= 0.39
The cash ratio of Starbucks Corporation has fluctuated over the past five years, ranging from 0.35 to 0.81. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external financing.
In 2021, Starbucks had a relatively high cash ratio of 0.81, indicating a healthy liquidity position. However, this ratio dropped in 2022 to 0.35, suggesting a potential decrease in the company's ability to cover short-term liabilities with cash on hand. Subsequently, the ratio increased in 2023 to 0.42 before declining again to 0.39 in 2024.
Overall, Starbucks' cash ratio has shown variability over the years, which could reflect changes in the company's cash management strategies, working capital needs, or investments in the business. Further analysis of the company's cash flows and overall financial health would be necessary to better understand the implications of these changes in the cash ratio.
Peer comparison
Sep 30, 2024