Starbucks Corporation (SBUX)
Interest coverage
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 6,206,400 | 5,951,900 | 5,441,800 | 5,151,300 | 4,800,100 | 4,712,900 | 5,854,700 | 6,064,100 | 6,074,300 | 5,825,800 | 4,025,000 | 1,809,600 | 1,297,700 | 1,604,800 | 2,137,700 | 4,592,100 | 4,997,400 | 4,802,000 | 4,697,100 | 4,006,900 |
| Interest expense (ttm) | US$ in thousands | 560,500 | 550,100 | 532,200 | 514,400 | 497,200 | 482,800 | 478,100 | 468,400 | 464,300 | 469,700 | 474,000 | 481,400 | 465,600 | 436,800 | 407,600 | 373,200 | 347,900 | 331,000 | 299,200 | 258,200 |
| Interest coverage | 11.07 | 10.82 | 10.23 | 10.01 | 9.65 | 9.76 | 12.25 | 12.95 | 13.08 | 12.40 | 8.49 | 3.76 | 2.79 | 3.67 | 5.24 | 12.30 | 14.36 | 14.51 | 15.70 | 15.52 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $6,206,400K ÷ $560,500K
= 11.07
The interest coverage ratio for Starbucks Corp. has exhibited stability over the past eight quarters, ranging from 9.56 to 11.03. This indicates the company's consistent ability to meet its interest payment obligations from its operating income. The relatively high values of the interest coverage ratio signify a strong capacity to service its debt, providing a cushion against potential financial challenges. This sustained performance reflects favorably on the company's financial solvency and ability to manage its debt effectively.
Peer comparison
Dec 31, 2023
Company name
Symbol
Interest coverage
Starbucks Corporation
SBUX
11.07
Shake Shack Inc
SHAK
10.47
The Wendy’s Co
WEN
3.25