Stock Analysis on Net

Starbucks Corp. (NASDAQ:SBUX)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Starbucks Corp., short-term (operating) activity ratios

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Turnover Ratios
Inventory turnover 10.97 12.89 11.90 12.44 12.40 11.39
Receivables turnover 27.44 30.92 26.62 30.15 35.67 25.72
Payables turnover 16.57 17.06 18.50 15.99 14.73 19.85
Working capital turnover 18.11 51.17 3.63 21.07
Average No. Days
Average inventory processing period 33 28 31 29 29 32
Add: Average receivable collection period 13 12 14 12 10 14
Operating cycle 46 40 45 41 39 46
Less: Average payables payment period 22 21 20 23 25 18
Cash conversion cycle 24 19 25 18 14 28

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Starbucks Corp. inventory turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Receivables turnover An activity ratio equal to revenue divided by receivables. Starbucks Corp. receivables turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Starbucks Corp. payables turnover ratio decreased from 2020 to 2021 and from 2021 to 2022.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Starbucks Corp. number of days of inventory outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Starbucks Corp. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Starbucks Corp. number of days of payables outstanding increased from 2020 to 2021 and from 2021 to 2022.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Starbucks Corp. cash conversion cycle improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Inventory Turnover

Starbucks Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data (US$ in thousands)
Cost of revenues 23,879,200 20,669,600 18,458,900 19,020,500 17,367,700 15,531,500
Inventories 2,176,600 1,603,900 1,551,400 1,529,400 1,400,500 1,364,000
Short-term Activity Ratio
Inventory turnover1 10.97 12.89 11.90 12.44 12.40 11.39
Benchmarks
Inventory Turnover, Competitors2
Carnival Corp. & plc 13.08 24.61 30.23 24.64 27.13
McDonald’s Corp. 144.74 136.62 154.59 161.76 177.03
Inventory Turnover, Sector
Consumer Services 16.56 17.39 19.78 19.31 20.14
Inventory Turnover, Industry
Consumer Discretionary 7.00 7.44 7.66 7.97 7.61

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Inventory turnover = Cost of revenues ÷ Inventories
= 23,879,200 ÷ 2,176,600 = 10.97

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Starbucks Corp. inventory turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Receivables Turnover

Starbucks Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data (US$ in thousands)
Net revenues 32,250,300 29,060,600 23,518,000 26,508,600 24,719,500 22,386,800
Accounts receivable, net 1,175,500 940,000 883,400 879,200 693,100 870,400
Short-term Activity Ratio
Receivables turnover1 27.44 30.92 26.62 30.15 35.67 25.72
Benchmarks
Receivables Turnover, Competitors2
Carnival Corp. & plc 7.76 20.49 46.90 52.74 56.12
McDonald’s Corp. 5.23 3.86 4.24 4.10 6.44
Receivables Turnover, Sector
Consumer Services 13.33 11.40 16.00 15.35 16.66
Receivables Turnover, Industry
Consumer Discretionary 19.67 20.05 19.88 20.51 20.23

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Receivables turnover = Net revenues ÷ Accounts receivable, net
= 32,250,300 ÷ 1,175,500 = 27.44

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Starbucks Corp. receivables turnover ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Payables Turnover

Starbucks Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data (US$ in thousands)
Cost of revenues 23,879,200 20,669,600 18,458,900 19,020,500 17,367,700 15,531,500
Accounts payable 1,441,400 1,211,600 997,900 1,189,700 1,179,300 782,500
Short-term Activity Ratio
Payables turnover1 16.57 17.06 18.50 15.99 14.73 19.85
Benchmarks
Payables Turnover, Competitors2
Carnival Corp. & plc 5.84 13.21 17.08 15.19 13.78
McDonald’s Corp. 7.99 9.42 7.85 6.84 11.26
Payables Turnover, Sector
Consumer Services 11.07 14.25 13.53 11.78 14.76
Payables Turnover, Industry
Consumer Discretionary 4.65 4.67 5.43 5.66 5.34

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 23,879,200 ÷ 1,441,400 = 16.57

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Starbucks Corp. payables turnover ratio decreased from 2020 to 2021 and from 2021 to 2022.

Working Capital Turnover

Starbucks Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data (US$ in thousands)
Current assets 7,018,700 9,756,400 7,806,400 5,653,900 12,494,200 5,283,400
Less: Current liabilities 9,151,800 8,151,400 7,346,800 6,168,700 5,684,200 4,220,700
Working capital (2,133,100) 1,605,000 459,600 (514,800) 6,810,000 1,062,700
 
Net revenues 32,250,300 29,060,600 23,518,000 26,508,600 24,719,500 22,386,800
Short-term Activity Ratio
Working capital turnover1 18.11 51.17 3.63 21.07
Benchmarks
Working Capital Turnover, Competitors2
Carnival Corp. & plc 2.98
McDonald’s Corp. 3.13 131.28 9.27 5.22
Working Capital Turnover, Sector
Consumer Services 9.14 15.53 58.87
Working Capital Turnover, Industry
Consumer Discretionary 13.01 15.65 45.70 25.34 26.87

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Working capital turnover = Net revenues ÷ Working capital
= 32,250,300 ÷ -2,133,100 =

2 Click competitor name to see calculations.


Average Inventory Processing Period

Starbucks Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data
Inventory turnover 10.97 12.89 11.90 12.44 12.40 11.39
Short-term Activity Ratio (no. days)
Average inventory processing period1 33 28 31 29 29 32
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Carnival Corp. & plc 28 15 12 15 13
McDonald’s Corp. 3 3 2 2 2
Average Inventory Processing Period, Sector
Consumer Services 22 21 18 19 18
Average Inventory Processing Period, Industry
Consumer Discretionary 52 49 48 46 48

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 10.97 = 33

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Starbucks Corp. number of days of inventory outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Average Receivable Collection Period

Starbucks Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data
Receivables turnover 27.44 30.92 26.62 30.15 35.67 25.72
Short-term Activity Ratio (no. days)
Average receivable collection period1 13 12 14 12 10 14
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Carnival Corp. & plc 47 18 8 7 7
McDonald’s Corp. 70 95 86 89 57
Average Receivable Collection Period, Sector
Consumer Services 27 32 23 24 22
Average Receivable Collection Period, Industry
Consumer Discretionary 19 18 18 18 18

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 27.44 = 13

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover.

Operating Cycle

Starbucks Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data
Average inventory processing period 33 28 31 29 29 32
Average receivable collection period 13 12 14 12 10 14
Short-term Activity Ratio
Operating cycle1 46 40 45 41 39 46
Benchmarks
Operating Cycle, Competitors2
Carnival Corp. & plc 75 33 20 22 20
McDonald’s Corp. 73 98 88 91 59
Operating Cycle, Sector
Consumer Services 49 53 41 43 40
Operating Cycle, Industry
Consumer Discretionary 71 67 66 64 66

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 33 + 13 = 46

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Starbucks Corp. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Average Payables Payment Period

Starbucks Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data
Payables turnover 16.57 17.06 18.50 15.99 14.73 19.85
Short-term Activity Ratio (no. days)
Average payables payment period1 22 21 20 23 25 18
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Carnival Corp. & plc 62 28 21 24 26
McDonald’s Corp. 46 39 46 53 32
Average Payables Payment Period, Sector
Consumer Services 33 26 27 31 25
Average Payables Payment Period, Industry
Consumer Discretionary 78 78 67 64 68

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 16.57 = 22

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Starbucks Corp. number of days of payables outstanding increased from 2020 to 2021 and from 2021 to 2022.

Cash Conversion Cycle

Starbucks Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data
Average inventory processing period 33 28 31 29 29 32
Average receivable collection period 13 12 14 12 10 14
Average payables payment period 22 21 20 23 25 18
Short-term Activity Ratio
Cash conversion cycle1 24 19 25 18 14 28
Benchmarks
Cash Conversion Cycle, Competitors2
Carnival Corp. & plc 13 5 -1 -2 -6
McDonald’s Corp. 27 59 42 38 27
Cash Conversion Cycle, Sector
Consumer Services 16 27 14 12 15
Cash Conversion Cycle, Industry
Consumer Discretionary -7 -11 -1 0 -2

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 33 + 1322 = 24

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Starbucks Corp. cash conversion cycle improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.