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

Company name
Symbol
Debt-to-capital ratio
Starbucks Corporation
SBUX
2.44
Shake Shack Inc
SHAK
0.00
The Wendy’s Co
WEN
0.90

See also:

Starbucks Corporation Debt to Capital