Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Starbucks Corp., liquidity ratios
Based on: 10-K (reporting date: 2026-09-27), 10-K (reporting date: 2025-09-28), 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).
A comprehensive analysis of the liquidity position reveals a significant structural shift in the balance between current assets and current liabilities occurring between the 2021 and 2022 fiscal periods. Following an initial period of strong liquidity, a persistent contraction is observed, with all key metrics remaining below their 2021 levels for the subsequent five years.
- Current Ratio
- The current ratio experienced a sharp decline from 1.20 in 2021 to 0.77 in 2022. For the remainder of the period, the ratio remained constrained, fluctuating within a narrow range between 0.72 and 0.78. This indicates that current liabilities consistently exceed current assets, reflecting a more aggressive approach to working capital management.
- Quick Ratio
- A similar trend is evident in the quick ratio, which fell from 0.93 in 2021 to 0.48 in 2022. The ratio exhibited minor volatility between 2023 and 2026, moving between 0.46 and 0.55. This suggests a diminished capacity to satisfy short-term obligations using only the most liquid assets, excluding inventories.
- Cash Ratio
- The cash ratio showed the most pronounced drop, moving from 0.81 in 2021 to 0.35 in 2022. Although a slight recovery to 0.42 occurred in 2023, the ratio generally trended downward toward 0.34 in 2025 before settling at 0.38 in 2026, signifying a reduced cash buffer relative to short-term debt.
The synchronized movement of these three ratios suggests a systemic reduction in liquidity buffers. The stability of these metrics at lower levels from 2022 through 2026 indicates that the company has transitioned to an operational model characterized by lean liquidity, potentially relying more heavily on continuous operational cash flow to meet immediate financial obligations.
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Current Ratio
Starbucks Corp., current ratio calculation, comparison to benchmarks
| Sep 27, 2026 | Sep 28, 2025 | Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 7,671,400) | 7,382,300) | 6,847,400) | 7,303,400) | 7,018,700) | 9,756,400) | |
| Current liabilities | 10,113,800) | 10,210,400) | 9,070,000) | 9,345,300) | 9,151,800) | 8,151,400) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 0.76 | 0.72 | 0.75 | 0.78 | 0.77 | 1.20 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Airbnb Inc. | — | 1.38 | 1.69 | 1.66 | 1.86 | 1.95 | |
| Booking Holdings Inc. | — | 1.33 | 1.31 | 1.28 | 1.86 | 2.10 | |
| Chipotle Mexican Grill Inc. | — | 1.23 | 1.52 | 1.57 | 1.28 | 1.58 | |
| DoorDash, Inc. | — | 1.41 | 1.66 | 1.64 | 1.86 | 2.59 | |
| McDonald’s Corp. | — | 0.95 | 1.19 | 1.16 | 1.43 | 1.78 | |
| Current Ratio, Sector | |||||||
| Consumer Services | — | 1.20 | 1.31 | 1.28 | 1.49 | 1.77 | |
| Current Ratio, Industry | |||||||
| Consumer Discretionary | — | 1.18 | 1.22 | 1.20 | 1.15 | 1.25 | |
Based on: 10-K (reporting date: 2026-09-27), 10-K (reporting date: 2025-09-28), 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).
1 2026 Calculation
Current ratio = Current assets ÷ Current liabilities
= 7,671,400 ÷ 10,113,800 = 0.76
2 Click competitor name to see calculations.
The organization's liquidity position has undergone a significant transition, shifting from a state of positive net working capital to a sustained deficit where current liabilities exceed current assets.
- Current Ratio Trend
- A sharp contraction in the current ratio is observed between 2021 and 2022, falling from 1.20 to 0.77. For the remainder of the period, the ratio remains consistently below the 1.0 threshold, reaching a low of 0.72 in 2025 before a marginal recovery to 0.76 in 2026. This pattern indicates a persistent liquidity gap, where short-term assets are insufficient to cover immediate obligations.
- Current Assets Analysis
- Current assets experienced a substantial decrease from 9.76 billion US$ in 2021 to 7.02 billion US$ in 2022. Following a period of volatility and a further dip to 6.85 billion US$ in 2024, a gradual recovery trend is evident, with assets rising to 7.67 billion US$ by 2026. Despite this recovery, asset levels remain significantly lower than the 2021 baseline.
- Current Liabilities Analysis
- Short-term obligations have exhibited a general upward trajectory, increasing from 8.15 billion US$ in 2021 to a peak of 10.21 billion US$ in 2025. The growth in current liabilities has outpaced the growth of current assets, which serves as the primary driver for the sustained depression of the current ratio throughout the analyzed period.
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Quick Ratio
Starbucks Corp., quick ratio calculation, comparison to benchmarks
| Sep 27, 2026 | Sep 28, 2025 | Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 3,679,900) | 3,219,800) | 3,286,200) | 3,551,500) | 2,818,400) | 6,455,700) | |
| Short-term investments | 184,300) | 247,200) | 257,000) | 401,500) | 364,500) | 162,200) | |
| Accounts receivable, net | 1,177,500) | 1,277,500) | 1,213,800) | 1,184,100) | 1,175,500) | 940,000) | |
| Total quick assets | 5,041,700) | 4,744,500) | 4,757,000) | 5,137,100) | 4,358,400) | 7,557,900) | |
| Current liabilities | 10,113,800) | 10,210,400) | 9,070,000) | 9,345,300) | 9,151,800) | 8,151,400) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.50 | 0.46 | 0.52 | 0.55 | 0.48 | 0.93 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Airbnb Inc. | — | 1.33 | 1.64 | 1.62 | 1.83 | 1.91 | |
| Booking Holdings Inc. | — | 1.26 | 1.24 | 1.20 | 1.73 | 2.00 | |
| Chipotle Mexican Grill Inc. | — | 1.01 | 1.34 | 1.37 | 1.09 | 1.35 | |
| DoorDash, Inc. | — | 1.12 | 1.41 | 1.38 | 1.54 | 2.33 | |
| McDonald’s Corp. | — | 0.74 | 0.90 | 1.03 | 1.24 | 1.64 | |
| Quick Ratio, Sector | |||||||
| Consumer Services | — | 1.06 | 1.18 | 1.15 | 1.31 | 1.61 | |
| Quick Ratio, Industry | |||||||
| Consumer Discretionary | — | 0.87 | 0.91 | 0.86 | 0.81 | 0.93 | |
Based on: 10-K (reporting date: 2026-09-27), 10-K (reporting date: 2025-09-28), 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).
1 2026 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 5,041,700 ÷ 10,113,800 = 0.50
2 Click competitor name to see calculations.
The liquidity position of the organization experienced a significant contraction between October 2021 and October 2022, followed by a period of relative stagnation through September 2026. The overall trend indicates a diminished capacity to cover short-term obligations using only the most liquid assets.
- Quick Ratio Volatility
- A substantial decline in the quick ratio is observed from 0.93 in October 2021 to 0.48 in October 2022. Following this sharp drop, the ratio stabilized within a narrow corridor, fluctuating between a low of 0.46 in September 2025 and a peak of 0.55 in October 2023. This indicates a persistent state of reduced liquidity compared to the 2021 baseline.
- Analysis of Quick Assets
- Total quick assets saw a marked reduction of approximately 42.5% between October 2021 and October 2022, falling from 7,557,900 thousand US$ to 4,358,400 thousand US$. While assets recovered slightly to 5,041,700 thousand US$ by September 2026, they remained significantly below the initial 2021 levels, failing to keep pace with the growth of obligations.
- Current Liabilities Trajectory
- Current liabilities exhibited a consistent upward trend over the analyzed period. Obligations increased from 8,151,400 thousand US$ in October 2021 to 10,113,800 thousand US$ by September 2026. This steady growth in short-term debt has exerted continuous downward pressure on the quick ratio, compounding the impact of the reduced asset base.
- Liquidity Risk Implications
- The consistency of the quick ratio remaining well below 1.0 from 2022 through 2026 suggests that the entity does not maintain sufficient liquid assets to satisfy all current liabilities immediately. The reliance on non-quick current assets, such as inventory, or the need for external financing to meet short-term commitments is implied by this sustained ratio level.
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Cash Ratio
Starbucks Corp., cash ratio calculation, comparison to benchmarks
| Sep 27, 2026 | Sep 28, 2025 | Sep 29, 2024 | Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 3,679,900) | 3,219,800) | 3,286,200) | 3,551,500) | 2,818,400) | 6,455,700) | |
| Short-term investments | 184,300) | 247,200) | 257,000) | 401,500) | 364,500) | 162,200) | |
| Total cash assets | 3,864,200) | 3,467,000) | 3,543,200) | 3,953,000) | 3,182,900) | 6,617,900) | |
| Current liabilities | 10,113,800) | 10,210,400) | 9,070,000) | 9,345,300) | 9,151,800) | 8,151,400) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.38 | 0.34 | 0.39 | 0.42 | 0.35 | 0.81 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Airbnb Inc. | — | 0.81 | 1.04 | 1.01 | 1.21 | 1.31 | |
| Booking Holdings Inc. | — | 1.03 | 1.03 | 0.95 | 1.46 | 1.79 | |
| Chipotle Mexican Grill Inc. | — | 0.88 | 1.22 | 1.26 | 0.98 | 1.23 | |
| DoorDash, Inc. | — | 0.94 | 1.25 | 1.23 | 1.38 | 2.13 | |
| McDonald’s Corp. | — | 0.18 | 0.28 | 0.67 | 0.68 | 1.17 | |
| Cash Ratio, Sector | |||||||
| Consumer Services | — | 0.75 | 0.86 | 0.84 | 0.98 | 1.30 | |
| Cash Ratio, Industry | |||||||
| Consumer Discretionary | — | 0.50 | 0.52 | 0.48 | 0.47 | 0.64 | |
Based on: 10-K (reporting date: 2026-09-27), 10-K (reporting date: 2025-09-28), 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).
1 2026 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 3,864,200 ÷ 10,113,800 = 0.38
2 Click competitor name to see calculations.
An analysis of the liquidity position reveals a significant structural shift in the relationship between cash reserves and short-term obligations between 2021 and 2026. While the initial period was characterized by high liquidity, the subsequent five years demonstrate a sustained period of tighter cash availability relative to current liabilities.
- Total Cash Assets
- A substantial reduction in cash assets is observed between 2021 and 2022, where holdings fell from 6,617,900 thousand to 3,182,900 thousand. Following this sharp contraction, cash levels entered a period of relative stabilization, fluctuating between a low of 3,467,000 thousand in 2025 and a recovery to 3,864,200 thousand by 2026.
- Current Liabilities
- Short-term obligations exhibited a general upward trend throughout the analyzed period. Current liabilities grew from 8,151,400 thousand in 2021 to a peak of 10,210,400 thousand in 2025, before marginally decreasing to 10,113,800 thousand in 2026. This steady increase in liabilities has contributed to the compression of the liquidity ratio.
- Cash Ratio Interpretation
- The cash ratio experienced a precipitous decline from 0.81 in 2021 to 0.35 in 2022. For the remainder of the period, the ratio remained within a narrow band, ranging from a low of 0.34 in 2025 to a high of 0.42 in 2023. This trend indicates a diminished capacity to settle all current liabilities instantaneously using only cash and cash equivalents, marking a significant departure from the liquidity profile maintained in 2021.
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