Starbucks Corporation (SBUX)
Quick ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,286,200 | 3,551,500 | 2,818,400 | 6,455,700 | 4,350,900 |
| Short-term investments | US$ in thousands | 257,000 | 401,500 | 364,500 | 162,200 | 281,200 |
| Receivables | US$ in thousands | 1,213,800 | 1,184,100 | 1,203,200 | 960,700 | 1,269,000 |
| Total current liabilities | US$ in thousands | 9,070,000 | 9,345,300 | 9,151,800 | 8,151,400 | 7,346,800 |
| Quick ratio | 0.52 | 0.55 | 0.48 | 0.93 | 0.80 |
September 30, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,286,200K
+ $257,000K
+ $1,213,800K)
÷ $9,070,000K
= 0.52
The quick ratio of Starbucks Corporation has shown fluctuations in recent years, indicating changes in the company's liquidity position. As of September 30, 2024, the quick ratio stands at 0.52, which denotes that for every dollar of current liabilities, Starbucks has $0.52 of liquid assets readily available to cover its short-term obligations.
Over the past five years, the quick ratio has ranged from a low of 0.48 in 2022 to a high of 0.93 in 2021. The decreasing trend from 2021 to 2024, where the quick ratio declined from 0.93 to 0.52, suggests a potential weakening in Starbucks' ability to meet its short-term obligations with its most liquid assets.
A quick ratio lower than 1 indicates that Starbucks may have difficulty in meeting its short-term obligations without relying on selling inventory or obtaining additional financing. Investors and creditors typically prefer a quick ratio above 1 as it signifies a healthier liquidity position.
Overall, the analysis of Starbucks Corporation's quick ratio highlights the importance of monitoring liquidity levels and managing short-term financial obligations effectively to ensure financial stability and sustainability.
Peer comparison
Sep 30, 2024