Starbucks Corporation (SBUX)
Debt-to-capital ratio
| Sep 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 14,319,500 | 15,547,500 | 13,564,800 | 13,547,600 | 13,544,400 | 13,544,800 | 13,176,700 | 13,119,900 | 13,930,800 | 14,014,400 | 13,586,300 | 13,616,900 | 13,619,200 | 14,630,300 | 14,673,500 | 14,659,600 | 14,645,600 | 11,658,700 | 10,653,200 | 11,167,000 |
| Total stockholders’ equity | US$ in thousands | -7,448,900 | -8,449,400 | -8,616,000 | -7,994,800 | -8,348,600 | -8,506,900 | -8,673,800 | -8,706,600 | -8,666,500 | -8,768,000 | -8,457,200 | -5,321,200 | -6,800,800 | -7,654,000 | -7,909,700 | -7,805,100 | -8,621,600 | -7,530,100 | -6,759,900 | -6,232,200 |
| Debt-to-capital ratio | 2.08 | 2.19 | 2.74 | 2.44 | 2.61 | 2.69 | 2.93 | 2.97 | 2.65 | 2.67 | 2.65 | 1.64 | 2.00 | 2.10 | 2.17 | 2.14 | 2.43 | 2.82 | 2.74 | 2.26 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $14,319,500K ÷ ($14,319,500K + $-7,448,900K)
= 2.08
The debt-to-capital ratio of Starbucks Corporation has shown fluctuations over the past several quarters, indicating varying levels of leverage in the company's capital structure. The ratio has ranged from 1.64 to 2.97, with a high of 2.97 in December 2022 and a low of 1.64 in December 2021.
A debt-to-capital ratio above 1 indicates that the company has more debt than equity in its capital structure. A higher ratio suggests a higher degree of financial risk and dependency on debt financing. The ratio has generally been above 2 in recent quarters, indicating that a significant portion of Starbucks' capital structure is comprised of debt.
It is important to note that while a higher debt-to-capital ratio can imply increased financial risk, it can also be influenced by various factors such as interest rates, economic conditions, and strategic financing decisions. Investors and analysts should consider the trend of this ratio over time along with other financial metrics to assess the overall financial health and risk profile of Starbucks Corporation.
Peer comparison
Sep 30, 2024