Starbucks Corporation (SBUX)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | -7,994,800 | -8,706,600 | -5,321,200 | -7,805,100 | -6,232,200 |
| Debt-to-capital ratio | 2.44 | 2.97 | 1.64 | 2.14 | 2.26 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $13,547,600K ÷ ($13,547,600K + $-7,994,800K)
= 2.44
The debt-to-capital ratio for Starbucks Corporation has fluctuated over the past five years, indicating varying levels of financial leverage. The ratio stood at 2.44 in September 2023, down from 2.97 in the previous year. This decrease suggests that the company has reduced its reliance on debt financing in relation to its overall capital structure.
Comparing to previous years, the ratio was at its lowest in September 2021 at 1.64, indicating a lower proportion of debt in the company's capital structure. However, the ratio increased in the subsequent years, reaching 2.14 in 2020 and 2.26 in 2019, highlighting a higher debt component in the capital mix during those periods.
Overall, the trend in the debt-to-capital ratio for Starbucks Corporation indicates a mix of debt and equity in its capital structure that has varied over the past years. The recent decrease in the ratio suggests a potential shift towards a more balanced or equity-heavy capital structure in the most recent financial year.
Peer comparison
Sep 30, 2023