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

Company name
Symbol
Current ratio
Starbucks Corporation
SBUX
0.78
Shake Shack Inc
SHAK
2.04
The Wendy’s Co
WEN
2.19

See also:

Starbucks Corporation Current Ratio