Starbucks Corporation (SBUX)

Quick ratio

Sep 30, 2023 Sep 30, 2022 Sep 30, 2021 Sep 30, 2020 Sep 30, 2019
Cash 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
Receivables US$ in thousands 1,184,100 1,203,200 960,700 1,269,000 1,055,800
Total current liabilities US$ in thousands 9,345,300 9,151,800 8,151,400 7,346,800 6,168,700
Quick ratio 0.55 0.48 0.93 0.80 0.62

September 30, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,551,500K + $401,500K + $1,184,100K) ÷ $9,345,300K
= 0.55

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that a company may have difficulty meeting its short-term liabilities.

Looking at Starbucks Corporation's quick ratio over the past five years, we see a fluctuating trend. In 2023, the quick ratio was 0.55, which increased from 0.48 in 2022. However, it is notably lower than the quick ratio of 0.93 in 2021 and 0.80 in 2020. The quick ratio was at its lowest in 2019 at 0.62.

A quick ratio below 1 suggests that Starbucks Corporation may be relying more on inventory and receivables to meet its short-term obligations, which could be a cause for concern as these assets may not be as easily convertible to cash in times of financial distress. It is important for investors and stakeholders to monitor Starbucks' ability to improve its quick ratio in order to ensure its liquidity and financial stability.


Peer comparison

Sep 30, 2023

Company name
Symbol
Quick ratio
Starbucks Corporation
SBUX
0.55
Shake Shack Inc
SHAK
1.89
The Wendy’s Co
WEN
1.68

See also:

Starbucks Corporation Quick Ratio