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