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

Company name
Symbol
Debt-to-assets ratio
Starbucks Corporation
SBUX
0.46
Shake Shack Inc
SHAK
0.00
The Wendy’s Co
WEN
0.53

See also:

Starbucks Corporation Debt to Assets