Starbucks Corporation (SBUX)
Quick ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 3,000,400 | 3,551,500 | 3,357,000 | 3,071,800 | 3,186,500 | 2,818,400 | 3,177,500 | 3,913,400 | 3,969,400 | 6,455,700 | 4,753,100 | 3,880,700 | 5,028,100 | 4,350,900 | 3,965,900 | 2,572,300 | 3,040,500 | 2,686,600 | 4,763,300 | 2,055,100 |
| Short-term investments | US$ in thousands | 383,000 | 401,500 | 263,000 | 379,400 | 123,900 | 364,500 | 76,900 | 82,100 | 87,400 | 162,200 | 153,600 | 123,000 | 235,500 | 281,200 | 229,900 | 52,900 | 68,400 | 70,500 | 72,100 | 76,600 |
| Receivables | US$ in thousands | 1,165,100 | 1,184,100 | 1,140,200 | — | — | 1,203,200 | — | — | — | 960,700 | 979,100 | 1,060,800 | 1,220,600 | 1,269,000 | 1,310,900 | 1,331,800 | 1,049,100 | 1,055,800 | 898,100 | 900,000 |
| Total current liabilities | US$ in thousands | 9,395,600 | 9,345,300 | 9,214,600 | 9,121,800 | 9,246,200 | 9,151,800 | 8,402,400 | 9,104,300 | 8,921,100 | 8,151,400 | 7,799,800 | 6,505,100 | 7,883,900 | 7,346,800 | 8,002,000 | 8,265,800 | 8,675,500 | 6,168,700 | 5,895,800 | 5,273,400 |
| Quick ratio | 0.48 | 0.55 | 0.52 | 0.38 | 0.36 | 0.48 | 0.39 | 0.44 | 0.45 | 0.93 | 0.75 | 0.78 | 0.82 | 0.80 | 0.69 | 0.48 | 0.48 | 0.62 | 0.97 | 0.57 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($3,000,400K
+ $383,000K
+ $1,165,100K)
÷ $9,395,600K
= 0.48
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered healthy. Starbucks Corp.'s quick ratio has fluctuated over the past eight quarters, ranging from 0.52 to 0.62.
The decrease in the quick ratio from 0.59 in Oct 1, 2023, to 0.52 in Dec 31, 2023, may raise concerns about the company's short-term liquidity. However, it is important to note that the quick ratio remained relatively stable within the range of 0.52 to 0.62 over the period. This suggests that Starbucks Corp. has been able to maintain a reasonable level of liquidity to meet its short-term obligations despite the fluctuations.
Analyzing the quick ratio in conjunction with other liquidity and financial metrics would provide a more comprehensive understanding of Starbucks Corp.'s overall financial health. It's important to consider the nature of the industry and any specific business strategies when interpreting the quick ratio and its trends.
Peer comparison
Dec 31, 2023