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.
Short-term Activity Ratios (Summary)
Starbucks Corp., short-term (operating) activity ratios
Based on: 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), 10-K (reporting date: 2018-09-30).
| 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Starbucks Corp. receivables turnover ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Starbucks Corp. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |
| 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
| 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. | |
| 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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Inventory Turnover
Starbucks Corp., inventory turnover calculation, comparison to benchmarks
| Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cost of revenues | 26,129,400) | 23,879,200) | 20,669,600) | 18,458,900) | 19,020,500) | 17,367,700) | |
| Inventories | 1,806,400) | 2,176,600) | 1,603,900) | 1,551,400) | 1,529,400) | 1,400,500) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 14.46 | 10.97 | 12.89 | 11.90 | 12.44 | 12.40 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Chipotle Mexican Grill Inc. | 185.34 | 184.27 | 177.91 | 186.94 | 170.29 | — | |
| McDonald’s Corp. | 155.76 | 141.94 | 144.74 | 136.62 | 154.59 | — | |
| Inventory Turnover, Sector | |||||||
| Consumer Services | 34.08 | 24.92 | 27.58 | 23.36 | 28.83 | — | |
| Inventory Turnover, Industry | |||||||
| Consumer Discretionary | 6.99 | 6.67 | 7.04 | 7.48 | 7.72 | — | |
Based on: 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), 10-K (reporting date: 2018-09-30).
1 2023 Calculation
Inventory turnover = Cost of revenues ÷ Inventories
= 26,129,400 ÷ 1,806,400 = 14.46
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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Receivables Turnover
Starbucks Corp., receivables turnover calculation, comparison to benchmarks
| Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Net revenues | 35,975,600) | 32,250,300) | 29,060,600) | 23,518,000) | 26,508,600) | 24,719,500) | |
| Accounts receivable, net | 1,184,100) | 1,175,500) | 940,000) | 883,400) | 879,200) | 693,100) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 30.38 | 27.44 | 30.92 | 26.62 | 30.15 | 35.67 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Airbnb Inc. | 39.83 | 42.00 | 42.04 | 17.80 | — | — | |
| Booking Holdings Inc. | 6.57 | 7.67 | 8.07 | 12.85 | 8.97 | — | |
| Chipotle Mexican Grill Inc. | 85.44 | 80.79 | 75.77 | 57.27 | 69.36 | — | |
| McDonald’s Corp. | 3.92 | 4.14 | 5.23 | 3.86 | 4.24 | — | |
| Receivables Turnover, Sector | |||||||
| Consumer Services | 11.92 | 12.89 | 14.36 | 12.53 | 11.63 | — | |
| Receivables Turnover, Industry | |||||||
| Consumer Discretionary | 17.84 | 17.95 | 21.21 | 21.81 | 21.46 | — | |
Based on: 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), 10-K (reporting date: 2018-09-30).
1 2023 Calculation
Receivables turnover = Net revenues ÷ Accounts receivable, net
= 35,975,600 ÷ 1,184,100 = 30.38
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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Payables Turnover
Starbucks Corp., payables turnover calculation, comparison to benchmarks
| Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cost of revenues | 26,129,400) | 23,879,200) | 20,669,600) | 18,458,900) | 19,020,500) | 17,367,700) | |
| Accounts payable | 1,544,300) | 1,441,400) | 1,211,600) | 997,900) | 1,189,700) | 1,179,300) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 16.92 | 16.57 | 17.06 | 18.50 | 15.99 | 14.73 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Airbnb Inc. | 12.08 | 10.94 | 9.77 | 10.96 | — | — | |
| Booking Holdings Inc. | 6.14 | 6.82 | 6.91 | 9.25 | 12.16 | — | |
| Chipotle Mexican Grill Inc. | 36.86 | 35.61 | 35.79 | 40.52 | 38.37 | — | |
| McDonald’s Corp. | 7.46 | 7.53 | 7.99 | 9.42 | 7.85 | — | |
| Payables Turnover, Sector | |||||||
| Consumer Services | 10.01 | 10.75 | 11.42 | 14.22 | 13.10 | — | |
| Payables Turnover, Industry | |||||||
| Consumer Discretionary | 5.18 | 4.80 | 4.66 | 4.74 | 5.51 | — | |
Based on: 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), 10-K (reporting date: 2018-09-30).
1 2023 Calculation
Payables turnover = Cost of revenues ÷ Accounts payable
= 26,129,400 ÷ 1,544,300 = 16.92
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 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level. |
Working Capital Turnover
Starbucks Corp., working capital turnover calculation, comparison to benchmarks
| Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Current assets | 7,303,400) | 7,018,700) | 9,756,400) | 7,806,400) | 5,653,900) | 12,494,200) | |
| Less: Current liabilities | 9,345,300) | 9,151,800) | 8,151,400) | 7,346,800) | 6,168,700) | 5,684,200) | |
| Working capital | (2,041,900) | (2,133,100) | 1,605,000) | 459,600) | (514,800) | 6,810,000) | |
| Net revenues | 35,975,600) | 32,250,300) | 29,060,600) | 23,518,000) | 26,508,600) | 24,719,500) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | — | — | 18.11 | 51.17 | — | 3.63 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Airbnb Inc. | 1.51 | 1.22 | 0.99 | 0.89 | — | — | |
| Booking Holdings Inc. | 5.77 | 2.33 | 1.59 | 0.77 | 3.37 | — | |
| Chipotle Mexican Grill Inc. | 16.73 | 34.00 | 14.86 | 10.01 | 13.77 | — | |
| McDonald’s Corp. | 8.64 | 5.39 | 3.13 | 131.28 | — | — | |
| Working Capital Turnover, Sector | |||||||
| Consumer Services | 8.74 | 5.39 | 3.49 | 3.50 | 13.17 | — | |
| Working Capital Turnover, Industry | |||||||
| Consumer Discretionary | 14.99 | 18.57 | 11.02 | 13.68 | 25.90 | — | |
Based on: 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), 10-K (reporting date: 2018-09-30).
1 2023 Calculation
Working capital turnover = Net revenues ÷ Working capital
= 35,975,600 ÷ -2,041,900 = —
2 Click competitor name to see calculations.
Average Inventory Processing Period
Starbucks Corp., average inventory processing period calculation, comparison to benchmarks
| Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Inventory turnover | 14.46 | 10.97 | 12.89 | 11.90 | 12.44 | 12.40 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 25 | 33 | 28 | 31 | 29 | 29 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Chipotle Mexican Grill Inc. | 2 | 2 | 2 | 2 | 2 | — | |
| McDonald’s Corp. | 2 | 3 | 3 | 3 | 2 | — | |
| Average Inventory Processing Period, Sector | |||||||
| Consumer Services | 11 | 15 | 13 | 16 | 13 | — | |
| Average Inventory Processing Period, Industry | |||||||
| Consumer Discretionary | 52 | 55 | 52 | 49 | 47 | — | |
Based on: 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), 10-K (reporting date: 2018-09-30).
1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 14.46 = 25
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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Average Receivable Collection Period
Starbucks Corp., average receivable collection period calculation, comparison to benchmarks
| Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Receivables turnover | 30.38 | 27.44 | 30.92 | 26.62 | 30.15 | 35.67 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 12 | 13 | 12 | 14 | 12 | 10 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Airbnb Inc. | 9 | 9 | 9 | 21 | — | — | |
| Booking Holdings Inc. | 56 | 48 | 45 | 28 | 41 | — | |
| Chipotle Mexican Grill Inc. | 4 | 5 | 5 | 6 | 5 | — | |
| McDonald’s Corp. | 93 | 88 | 70 | 95 | 86 | — | |
| Average Receivable Collection Period, Sector | |||||||
| Consumer Services | 31 | 28 | 25 | 29 | 31 | — | |
| Average Receivable Collection Period, Industry | |||||||
| Consumer Discretionary | 20 | 20 | 17 | 17 | 17 | — | |
Based on: 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), 10-K (reporting date: 2018-09-30).
1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 30.38 = 12
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
| Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 25 | 33 | 28 | 31 | 29 | 29 | |
| Average receivable collection period | 12 | 13 | 12 | 14 | 12 | 10 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 37 | 46 | 40 | 45 | 41 | 39 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Chipotle Mexican Grill Inc. | 6 | 7 | 7 | 8 | 7 | — | |
| McDonald’s Corp. | 95 | 91 | 73 | 98 | 88 | — | |
| Operating Cycle, Sector | |||||||
| Consumer Services | 42 | 43 | 38 | 45 | 44 | — | |
| Operating Cycle, Industry | |||||||
| Consumer Discretionary | 72 | 75 | 69 | 66 | 64 | — | |
Based on: 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), 10-K (reporting date: 2018-09-30).
1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 25 + 12 = 37
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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |
Average Payables Payment Period
Starbucks Corp., average payables payment period calculation, comparison to benchmarks
| Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Payables turnover | 16.92 | 16.57 | 17.06 | 18.50 | 15.99 | 14.73 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 22 | 22 | 21 | 20 | 23 | 25 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Airbnb Inc. | 30 | 33 | 37 | 33 | — | — | |
| Booking Holdings Inc. | 59 | 54 | 53 | 39 | 30 | — | |
| Chipotle Mexican Grill Inc. | 10 | 10 | 10 | 9 | 10 | — | |
| McDonald’s Corp. | 49 | 48 | 46 | 39 | 46 | — | |
| Average Payables Payment Period, Sector | |||||||
| Consumer Services | 36 | 34 | 32 | 26 | 28 | — | |
| Average Payables Payment Period, Industry | |||||||
| Consumer Discretionary | 70 | 76 | 78 | 77 | 66 | — | |
Based on: 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), 10-K (reporting date: 2018-09-30).
1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 16.92 = 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. |
Cash Conversion Cycle
Starbucks Corp., cash conversion cycle calculation, comparison to benchmarks
No. days
| Oct 1, 2023 | Oct 2, 2022 | Oct 3, 2021 | Sep 27, 2020 | Sep 29, 2019 | Sep 30, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 25 | 33 | 28 | 31 | 29 | 29 | |
| Average receivable collection period | 12 | 13 | 12 | 14 | 12 | 10 | |
| Average payables payment period | 22 | 22 | 21 | 20 | 23 | 25 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 15 | 24 | 19 | 25 | 18 | 14 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Chipotle Mexican Grill Inc. | -4 | -3 | -3 | -1 | -3 | — | |
| McDonald’s Corp. | 46 | 43 | 27 | 59 | 42 | — | |
| Cash Conversion Cycle, Sector | |||||||
| Consumer Services | 6 | 9 | 6 | 19 | 16 | — | |
| Cash Conversion Cycle, Industry | |||||||
| Consumer Discretionary | 2 | -1 | -9 | -11 | -2 | — | |
Based on: 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), 10-K (reporting date: 2018-09-30).
1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 25 + 12 – 22 = 15
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 deteriorated from 2021 to 2022 but then improved from 2022 to 2023 exceeding 2021 level. |