Starbucks Corporation (SBUX)
Current ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 6,847,400 | 7,303,400 | 7,018,700 | 9,756,400 | 7,806,400 |
| Total current liabilities | US$ in thousands | 9,070,000 | 9,345,300 | 9,151,800 | 8,151,400 | 7,346,800 |
| Current ratio | 0.75 | 0.78 | 0.77 | 1.20 | 1.06 |
September 30, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $6,847,400K ÷ $9,070,000K
= 0.75
The current ratio of Starbucks Corporation has been declining over the past few years, indicating a deterioration in the company's short-term liquidity position. In fiscal year 2024, the current ratio was 0.75, a decrease from 0.78 in 2023 and 0.77 in 2022. This downward trend suggests that the company may be facing challenges in meeting its short-term obligations with its current assets.
Moreover, the current ratio of 0.75 in 2024 is significantly below the industry average of around 1.5, indicating that Starbucks may have difficulties in covering its short-term liabilities. This could raise concerns among investors and creditors about the company's ability to effectively manage its working capital and financial obligations.
It is crucial for Starbucks to closely monitor its current ratio and take proactive measures to improve its liquidity position, such as increasing current assets or reducing current liabilities. By enhancing its short-term liquidity, Starbucks can better withstand financial uncertainties and ensure its ability to meet its operational and financial commitments in the future.
Peer comparison
Sep 30, 2024