Starbucks Corporation (SBUX)
Debt-to-assets ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 13,547,600 | 13,119,900 | 13,616,900 | 14,659,600 | 11,167,000 |
| Total assets | US$ in thousands | 29,445,500 | 27,978,400 | 31,392,600 | 29,374,500 | 19,219,600 |
| Debt-to-assets ratio | 0.46 | 0.47 | 0.43 | 0.50 | 0.58 |
September 30, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $13,547,600K ÷ $29,445,500K
= 0.46
The debt-to-assets ratio for Starbucks Corporation has fluctuated over the past five years, ranging from 0.43 to 0.58. A lower ratio indicates that the company relies less on debt financing to fund its operations and investments, which may imply a lower financial risk.
In 2023, the debt-to-assets ratio improved slightly to 0.46 compared to the previous year's 0.47, suggesting a better balance between debt and assets. This trend is positive as it indicates that the company may be managing its debt levels more effectively and potentially strengthening its financial position.
However, it is important to note that the ratio was at its lowest in 2021 at 0.43, signaling a stronger asset base relative to debt. The subsequent increase in 2022 and previous years to 0.58 in 2019 may indicate a period of increased debt relative to assets, potentially raising concerns about the company's leverage and financial stability.
Overall, the decreasing trend in the debt-to-assets ratio over the past two years reflects a positive direction in the company's capital structure, but continued monitoring is advisable to ensure sustainable financial health.
Peer comparison
Sep 30, 2023