Accounts Receivable of Starbucks and General Electrics
Starbuck Corporation (SBUX) latest annual report is for the fiscal year ended October 2, 2022. SBUX’s net
accounts receivables reported on its consolidated balance sheet as of Oct 2, 2022, is $1,175.5 million. Its
total net revenues as of Oct 2, 2022, is $32,250.3 million.
SBUX’s accounts receivable as a percentage of its net revenue is (1,175.5/32,250.3) *100% = 3.64%.
General Electric latest annual report is for the fiscal year ended December 31, 2021. GE’s accounts
receivable as of December 31, 2021, is $15,847 million. Its net total revenue as of December 31, 2021, is
74,196 million.
GE’s accounts receivables as a percentage of its net revenue is (15,847/74,196) * 100% = 21.36%.
GE appears to be making more of its sales on account (21.36% of revenue) than SBUX (3.64% of
revenue). GE has a high percentage of credit sales because its accounts receivables consist of amounts
due from customers arising from the sales of equipment and services. Starbucks, on the other hand,
being a chain of coffeehouses and roastery reserves is likely to have high percentage of cash sales.
References
Starbuck Corporation (SBUX). Annual Report. https://www.sec.gov/ix?
doc=/Archives/edgar/data/829224/000082922422000058/sbux-20221002.htm
General Electric Company (GE). Annual Report. https://www.sec.gov/ix?
doc=/Archives/edgar/data/40545/000004054522000008/ge-20211231.htm
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