Starbucks Corporation (SBUX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.46 | 0.53 | 0.46 | 0.46 | 0.47 | 0.47 | 0.47 | 0.47 | 0.49 | 0.48 | 0.47 | 0.43 | 0.46 | 0.52 | 0.49 | 0.50 | 0.50 | 0.42 | 0.38 | 0.58 |
| 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 |
| Debt-to-equity ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
The Debt-to-assets ratio for Starbucks Corporation has shown relative stability over the past two years, ranging between 0.42 and 0.53. This indicates that on average, 46% to 53% of the company's total assets are financed by debt.
The Debt-to-capital ratio has also remained relatively consistent, fluctuating between 2.08 and 2.97 over the same period. This metric reveals that for every dollar of capital employed, Starbucks has utilized between $2.08 and $2.97 of debt financing.
Unfortunately, data for the Debt-to-equity ratio and Financial leverage ratio is not available, preventing a comprehensive solvency analysis using these metrics alone. It would be beneficial to examine additional financial ratios and information to gain a more complete understanding of Starbucks Corporation's solvency position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 9.84 | 10.61 | 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 |
The interest coverage ratio for Starbucks Corporation has displayed some fluctuations over the past few quarters. The ratio measures the company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio indicates that the company is better positioned to meet its interest obligations.
From December 2019 to March 2020, the interest coverage ratio was relatively high, indicating a strong ability to cover interest payments. However, there was a significant decline in the ratio in the following quarters, reaching its lowest point in March 2021. This may raise concerns about the company's ability to cover its interest expenses with its operating income during that period.
Subsequently, there was a notable improvement in the interest coverage ratio from March 2021 to September 2022, with the ratio consistently increasing during this period, reflecting an enhanced ability to service its interest obligations.
While the interest coverage ratio saw some fluctuations in the most recent quarters, it remained relatively stable at levels above 9.00. This suggests that Starbucks Corporation has generally maintained a comfortable cushion to meet its interest payments from its operating earnings.
Overall, the trend in Starbucks' interest coverage ratio indicates fluctuations over the periods analyzed, with some variability in the company's ability to cover its interest expenses. It is essential for investors and stakeholders to monitor this ratio closely to assess the company's financial health and ability to manage its debt obligations.