Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Paying user area
Try for free
Starbucks Corp. pages available for free this week:
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Selected Financial Data since 2005
- Price to Earnings (P/E) since 2005
- Price to Sales (P/S) since 2005
- Analysis of Revenues
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to Starbucks Corp. for $24.99.
This is a one-time payment. There is no automatic renewal.
We accept:
Short-term Activity Ratios (Summary)
Starbucks Corp., short-term (operating) activity ratios
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 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).
- Inventory Turnover
- The inventory turnover ratio shows some fluctuations over the years. Starting at 12.44 in 2019, it slightly decreased to 11.9 in 2020, then increased to 12.89 in 2021. A dip followed in 2022 to 10.97, but a significant increase occurred after that, reaching 14.46 in 2023 and 14.89 in 2024. This suggests improved efficiency in inventory management, particularly in the most recent years.
- Receivables Turnover
- The receivables turnover ratio initially declined from 30.15 in 2019 to 26.62 in 2020, then rebounded to 30.92 in 2021. It decreased again to 27.44 in 2022, followed by a moderate increase to 30.38 in 2023 and a slight decrease to 29.8 in 2024. Overall, the ratio remained relatively stable with minor fluctuations, indicating consistent effectiveness in collecting receivables over the periods.
- Payables Turnover
- The payables turnover ratio rose from 15.99 in 2019 to a peak of 18.5 in 2020, then declined gradually to 17.06 in 2021, 16.57 in 2022, 16.92 in 2023, and 16.59 in 2024. This shows a trend of initially quicker payments to suppliers followed by a moderate slowing in payables turnover, stabilizing around the 16.5–17.0 range in later years.
- Working Capital Turnover
- Data for working capital turnover is limited, with values only for 2020 (51.17) and 2021 (18.11). The sharp decline between these two years suggests a significant reduction in efficiency or changes in working capital structure. Due to the absence of data in other years, further trend analysis is not feasible.
- Average Inventory Processing Period
- The average number of days to process inventory started at 29 days in 2019, increasing to 31 days in 2020, then decreased to 28 days in 2021. It rose again to 33 days in 2022, but then decreased substantially to 25 days in both 2023 and 2024. The downward trend in recent years indicates a faster turnover of inventory aligning with the increased inventory turnover ratio.
- Average Receivable Collection Period
- The average collection period for receivables ranged narrowly between 12 and 14 days over the years. It increased slightly from 12 days in 2019 to 14 days in 2020, then declined back to 12–13 days from 2021 onward. This consistency reflects stable credit and collection policies.
- Operating Cycle
- The operating cycle lengthened from 41 days in 2019 to 45 days in 2020, decreased to 40 days in 2021, increased again to 46 days in 2022, and then sharply decreased to 37 days in both 2023 and 2024. The overall pattern shows variability, but a marked improvement in efficiency in managing the operating cycle appears in the last two years.
- Average Payables Payment Period
- The average payment period to suppliers shortened from 23 days in 2019 to 20 days in 2020, then slightly increased to 21 days in 2021 and remained fairly stable around 22 days from 2022 to 2024. This suggests a balanced approach to managing payables without significant shifts in payment timing in recent years.
- Cash Conversion Cycle
- The cash conversion cycle rose from 18 days in 2019 to 25 days in 2020, decreased to 19 days in 2021, increased again to 24 days in 2022, and then declined notably to 15 days in both 2023 and 2024. This indicates an improvement in overall cash management efficiency, with faster conversion of resources into cash in recent years.
Turnover Ratios
Average No. Days
Inventory Turnover
Starbucks Corp., inventory turnover calculation, comparison to benchmarks
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cost of revenues | |||||||
| Inventories | |||||||
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | |||||||
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Chipotle Mexican Grill Inc. | |||||||
| McDonald’s Corp. | |||||||
| Inventory Turnover, Sector | |||||||
| Consumer Services | |||||||
| Inventory Turnover, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 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).
1 2024 Calculation
Inventory turnover = Cost of revenues ÷ Inventories
= ÷ =
2 Click competitor name to see calculations.
- Cost of Revenues
- The cost of revenues shows a general increasing trend over the examined periods. Starting from approximately 19.02 billion US dollars in 2019, there is a slight decrease in 2020 to about 18.46 billion US dollars. From 2021 onward, the cost rises notably each year, reaching 26.47 billion US dollars by 2024. This upward trend suggests increasing expenses directly related to producing goods or services, potentially reflecting growth in sales volume, rising input costs, or a combination of both.
- Inventories
- Inventory levels exhibit some fluctuation during the period. Initially, inventories show a modest increase from 1.53 billion US dollars in 2019 to 1.60 billion in 2021. A significant jump occurs in 2022, where inventories peak at approximately 2.18 billion US dollars, followed by a decline to around 1.81 billion in 2023 and a further slight reduction to 1.78 billion in 2024. This pattern may indicate changes in inventory management strategies, demand forecasting, or supply chain adjustments.
- Inventory Turnover Ratio
- The inventory turnover ratio displays variability over the years. After a slight decrease from 12.44 in 2019 to 11.9 in 2020, it rises to 12.89 in 2021, then dips to 10.97 in 2022, before increasing sharply to 14.46 in 2023 and slightly higher to 14.89 in 2024. The increase in turnover ratio in the last two years implies improved efficiency in managing inventory relative to cost of revenues, possibly reflecting better inventory control, faster sales, or a reduction in inventory holding periods.
- Overall Insights
- The increasing cost of revenues alongside fluctuating inventory levels and a rising inventory turnover ratio in the later years suggests an evolving operational environment. The rise in cost of revenues could be attributed to expanded operations or higher input costs, while the improved inventory turnover ratio indicates enhanced inventory management efficiency despite previously elevated inventory levels. The significant inventory peak in 2022 followed by a reduction and improved turnover implies a strategic adjustment to optimize inventory held in relation to sales or production requirements.
Receivables Turnover
Starbucks Corp., receivables turnover calculation, comparison to benchmarks
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net revenues | |||||||
| Accounts receivable, net | |||||||
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | |||||||
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Airbnb Inc. | |||||||
| Booking Holdings Inc. | |||||||
| Chipotle Mexican Grill Inc. | |||||||
| McDonald’s Corp. | |||||||
| Receivables Turnover, Sector | |||||||
| Consumer Services | |||||||
| Receivables Turnover, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 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).
1 2024 Calculation
Receivables turnover = Net revenues ÷ Accounts receivable, net
= ÷ =
2 Click competitor name to see calculations.
- Net Revenues
- Net revenues demonstrate a notable upward trend over the six-year period. Starting at approximately 26.5 billion US dollars in 2019, revenues declined to around 23.5 billion in 2020, likely reflecting external economic or operational challenges during that year. From 2020 onward, revenues recover strongly, increasing consistently year-over-year to reach about 36.2 billion in 2024. This represents an overall growth exceeding 36% from the 2019 baseline, indicating robust sales expansion and possible market or product growth.
- Accounts Receivable, Net
- The net accounts receivable show a general increasing pattern from 879 million US dollars in 2019 to 1.21 billion in 2024. The increase is fairly steady, with a more pronounced rise visible between 2020 and 2022, where the balance grew from approximately 883 million to nearly 1.18 billion. The moderate growth in receivables relative to revenue growth suggests consistent credit extension policies and effective receivables management, though the incremental rise warrants monitoring for potential impacts on cash flow.
- Receivables Turnover Ratio
- This ratio fluctuates throughout the period, beginning at 30.15 in 2019, dipping to 26.62 in 2020, rebounding to above 30 in 2021, but then decreasing again in 2022 before stabilizing near 30 in the subsequent years. The lower turnover in 2020 coincides with the drop in net revenues and may indicate slower collections or extended payment terms during that year. The reversion to higher turnover ratios afterward signals an improvement in the efficiency of collecting receivables, though the slight dip in 2022 suggests periods of reduced collection effectiveness or changes in credit terms.
Payables Turnover
Starbucks Corp., payables turnover calculation, comparison to benchmarks
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cost of revenues | |||||||
| Accounts payable | |||||||
| Short-term Activity Ratio | |||||||
| Payables turnover1 | |||||||
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Airbnb Inc. | |||||||
| Booking Holdings Inc. | |||||||
| Chipotle Mexican Grill Inc. | |||||||
| McDonald’s Corp. | |||||||
| Payables Turnover, Sector | |||||||
| Consumer Services | |||||||
| Payables Turnover, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 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).
1 2024 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= ÷ =
2 Click competitor name to see calculations.
- Cost of Revenues
- The cost of revenues exhibited a fluctuating upward trend over the six-year period. Initially, there was a slight decline from 19,020,500 thousand US dollars in 2019 to 18,458,900 thousand US dollars in 2020. However, from 2020 onward, the cost of revenues increased consistently, reaching 26,467,100 thousand US dollars by 2024. This represents a significant overall growth, indicating increased expenses necessary to generate sales revenue.
- Accounts Payable
- Accounts payable decreased notably from 1,189,700 thousand US dollars in 2019 to 997,900 thousand US dollars in 2020, suggesting a possible reduction in credit purchases or more efficient payment cycles during that year. From 2020 to 2024, accounts payable gradually increased each year, ending at 1,595,500 thousand US dollars in 2024. This steady rise could imply expanding supplier credit usage or increased operational scale.
- Payables Turnover Ratio
- The payables turnover ratio peaked at 18.5 in 2020, indicating faster payments to suppliers relative to cost of goods sold during that period. After 2020, the ratio declined somewhat, fluctuating between approximately 16.57 and 17.06 in the following years, settling at 16.59 in 2024. This decrease suggests a slight lengthening in the payment cycle to suppliers compared to the 2020 benchmark, reflecting moderate changes in payment policy or vendor terms.
Working Capital Turnover
Starbucks Corp., working capital turnover calculation, comparison to benchmarks
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | |||||||
| Less: Current liabilities | |||||||
| Working capital | |||||||
| Net revenues | |||||||
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | |||||||
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Airbnb Inc. | |||||||
| Booking Holdings Inc. | |||||||
| Chipotle Mexican Grill Inc. | |||||||
| McDonald’s Corp. | |||||||
| Working Capital Turnover, Sector | |||||||
| Consumer Services | |||||||
| Working Capital Turnover, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 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).
1 2024 Calculation
Working capital turnover = Net revenues ÷ Working capital
= ÷ =
2 Click competitor name to see calculations.
- Working Capital
- The working capital exhibited significant fluctuations over the analyzed period. Initially negative at -514,800 thousand USD in 2019, it turned positive in 2020 and 2021, reaching up to 1,605,000 thousand USD. Following this, there was a marked decline, with working capital becoming negative again from 2022 onward, reaching -2,222,600 thousand USD by 2024. These swings indicate volatility in short-term liquidity and asset-liability management.
- Net Revenues
- Net revenues demonstrated a generally upward trend over the six years under consideration. After a dip from approximately 26.5 billion USD in 2019 to 23.5 billion USD in 2020, revenues rebounded strongly, increasing to nearly 29.1 billion USD in 2021 and continuing to grow steadily, peaking at approximately 36.2 billion USD in 2024. This upward trajectory suggests sustained sales growth and business expansion.
- Working Capital Turnover
- The working capital turnover ratio was only available for select years, showing a value of 51.17 in 2020 and declining sharply to 18.11 in 2021. The lack of data for other periods limits a full trend analysis; however, the observed decrease suggests less efficient use of working capital to generate revenues in 2021 compared to 2020.
Average Inventory Processing Period
Starbucks Corp., average inventory processing period calculation, comparison to benchmarks
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | |||||||
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | |||||||
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Chipotle Mexican Grill Inc. | |||||||
| McDonald’s Corp. | |||||||
| Average Inventory Processing Period, Sector | |||||||
| Consumer Services | |||||||
| Average Inventory Processing Period, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 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).
1 2024 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio displayed fluctuations over the observed period. It initially decreased from 12.44 in 2019 to 11.9 in 2020, suggesting a slight slowdown in inventory movement during this period. In 2021, the ratio increased to 12.89, indicating an improvement in inventory efficiency. However, the ratio dropped again in 2022 to 10.97, signifying a slowdown or buildup of inventory. Subsequently, the ratio rose sharply to 14.46 in 2023 and further to 14.89 in 2024, reflecting a significant enhancement in the speed of inventory turnover, which may imply stronger sales or improved inventory management in the most recent years.
- Average Inventory Processing Period
- The average inventory processing period, measured in days, shows an inverse relationship to the inventory turnover trend. It increased from 29 days in 2019 to 31 days in 2020, which aligns with the decrease in turnover ratio during that time. The processing period then shortened to 28 days in 2021, correlating with the increased turnover ratio that year. It lengthened considerably to 33 days in 2022, coinciding with the drop in turnover ratio, indicating slower processing of inventory. In the final two years, 2023 and 2024, the processing period reduced significantly to 25 days, consistent with the notable rise in inventory turnover ratio. This suggests more rapid inventory processing, supporting improved operational efficiency in those years.
- Overall Trends and Insights
- Throughout the period, the metrics indicate periods of volatility in inventory management performance. Initially, there is a pattern of modest decline followed by recovery and improvement in inventory turnover efficiency. The sharp improvement in the last two periods highlights possibly enhanced operational control or stronger demand, leading to faster inventory cycles. The corresponding improvements in the average processing period reinforce this conclusion, showing the company has been able to reduce the time inventory remains on hand in recent years. These trends point to a positive shift in inventory management effectiveness towards the latter part of the timeframe.
Average Receivable Collection Period
Starbucks Corp., average receivable collection period calculation, comparison to benchmarks
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | |||||||
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | |||||||
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Airbnb Inc. | |||||||
| Booking Holdings Inc. | |||||||
| Chipotle Mexican Grill Inc. | |||||||
| McDonald’s Corp. | |||||||
| Average Receivable Collection Period, Sector | |||||||
| Consumer Services | |||||||
| Average Receivable Collection Period, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 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).
1 2024 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio demonstrates variability over the observed periods, beginning at 30.15 in 2019 and declining to a low of 26.62 in 2020. Subsequently, the ratio improved to 30.92 in 2021 but showed a decrease again to 27.44 in 2022. The ratio then rose to 30.38 in 2023 before slightly dipping to 29.8 in 2024. Overall, the pattern indicates some fluctuations with a tendency to revert close to the initial value, suggesting intermittent changes in the efficiency of collecting receivables.
- Average Receivable Collection Period
- The average collection period measured in days exhibits relative stability throughout the timeline. Starting at 12 days in 2019, it increased modestly to 14 days in 2020, which corresponds with the decrease in the receivables turnover ratio observed that year. Following 2020, the collection period returned to 12 or 13 days, indicating a quick recovery and consistent effectiveness in collections within approximately two weeks.
Operating Cycle
Starbucks Corp., operating cycle calculation, comparison to benchmarks
No. days
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | |||||||
| Average receivable collection period | |||||||
| Short-term Activity Ratio | |||||||
| Operating cycle1 | |||||||
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Chipotle Mexican Grill Inc. | |||||||
| McDonald’s Corp. | |||||||
| Operating Cycle, Sector | |||||||
| Consumer Services | |||||||
| Operating Cycle, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 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).
1 2024 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= + =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period exhibited fluctuations over the analyzed years. It increased from 29 days in 2019 to a peak of 33 days in 2022, indicating a slower turnover during that period. Subsequently, a notable improvement was observed, with the period decreasing to 25 days in both 2023 and 2024, suggesting enhanced inventory management and quicker turnover.
- Average Receivable Collection Period
- The receivable collection period remained relatively stable throughout the years, ranging narrowly between 12 and 14 days. This consistency indicates steady efficiency in collecting receivables, with minor variations that do not suggest significant changes in credit or collection policies.
- Operating Cycle
- The operating cycle mirrored the trends observed in inventory processing, rising to 46 days in 2022 from 41 days in 2019, signifying an extended duration in the combined operational processes. The cycle then shortened substantially to 37 days in both 2023 and 2024, reflecting improved operational efficiency likely driven by faster inventory turnover and maintained receivables collection.
Average Payables Payment Period
Starbucks Corp., average payables payment period calculation, comparison to benchmarks
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | |||||||
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | |||||||
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Airbnb Inc. | |||||||
| Booking Holdings Inc. | |||||||
| Chipotle Mexican Grill Inc. | |||||||
| McDonald’s Corp. | |||||||
| Average Payables Payment Period, Sector | |||||||
| Consumer Services | |||||||
| Average Payables Payment Period, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 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).
1 2024 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ =
2 Click competitor name to see calculations.
- Payables Turnover
- The payables turnover ratio showed an increase from 15.99 in 2019 to a peak of 18.5 in 2020, indicating improved efficiency in managing payables during that period. However, after 2020, the ratio gradually declined, reaching 16.59 by 2024. This suggests a moderate decrease in the rate at which payables were being settled, moving closer to the initial levels observed in 2019 but remaining slightly higher overall.
- Average Payables Payment Period
- The average number of days to pay payables decreased notably from 23 days in 2019 to 20 days in 2020, reflecting faster payment cycles. From 2020 onwards, the payment period lengthened slightly to around 22 days and stabilized at this level through 2024. This stability implies a consistent payment strategy was maintained over the recent years following the initial acceleration in 2020.
- Overall Trends and Insights
- There is a clear relationship between the payables turnover ratio and the average payment period, as expected. The initial improvement in payables management in 2020 is possibly due to operational changes or external factors encouraging faster payments. Following this, the company appears to have settled into a steady state of payables management, balancing between turnover and payment period efficiency. No significant volatility is observed after the initial peak in 2020, indicating consistency in managing supplier payments in the last few years.
Cash Conversion Cycle
Starbucks Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | |||||||
| Average receivable collection period | |||||||
| Average payables payment period | |||||||
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | |||||||
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Chipotle Mexican Grill Inc. | |||||||
| McDonald’s Corp. | |||||||
| Cash Conversion Cycle, Sector | |||||||
| Consumer Services | |||||||
| Cash Conversion Cycle, Industry | |||||||
| Consumer Discretionary | |||||||
Based on: 10-K (reporting date: 2024-09-29), 10-K (reporting date: 2023-10-01), 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).
1 2024 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= + – =
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The average inventory processing period exhibited fluctuations over the observed years. It began at 29 days in 2019, increased slightly to 31 days in 2020, then decreased to 28 days in 2021. A notable increase occurred in 2022, reaching 33 days, followed by a significant reduction to 25 days in both 2023 and 2024. This indicates variability in inventory turnover efficiency, with improved performance in the most recent two years.
- Average Receivable Collection Period
- The average receivable collection period remained relatively stable throughout the period. It initially rose from 12 days in 2019 to 14 days in 2020, then returned to 12 days in 2021. Slight variations followed, with 13 days in 2022 and returning to 12 days in the last two years, suggesting consistent receivables management overall.
- Average Payables Payment Period
- The average payables payment period showed a declining trend from 23 days in 2019 to 20 days in 2020. Subsequently, it increased marginally to 21 days in 2021 and stabilized at 22 days for 2022 through 2024. This pattern indicates some initial tightening in payment policies, followed by moderate extension and stability in the later years.
- Cash Conversion Cycle
- The cash conversion cycle exhibited notable variability. Starting at 18 days in 2019, it increased to 25 days in 2020, then decreased to 19 days in 2021. Another rise occurred in 2022 to 24 days, followed by a significant decrease to 15 days in both 2023 and 2024. Overall, the trend suggests improved liquidity management and operational efficiency in the most recent years, reducing the time needed to convert investments into cash.