Starbucks Corporation (SBUX)
Current ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 0.78 | 0.77 | 1.20 | 1.06 | 0.92 |
September 30, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $7,303,400K ÷ $9,345,300K
= 0.78
Starbucks Corporation's current ratio has varied over the past five years, with the current ratio declining from 0.92 in 2019 to 0.78 in 2023. A current ratio below 1 indicates that the company may have difficulties meeting its short-term obligations with its current assets alone. It's worth noting that the current ratio was significantly higher in 2021 at 1.20, reflecting a stronger ability to cover short-term liabilities with current assets. However, the declining trend in the current ratio in recent years may signal potential liquidity challenges for Starbucks Corporation. Further analysis of the company's current assets and liabilities is needed to better understand the reasons behind the fluctuating current ratio and its implications for the company's financial health.
Peer comparison
Sep 30, 2023