What Is Starbucks Debt To Equity Ratio?

Starbucks Corp. Debt to Equity Ratio

Starbucks Corp uses fixed-income securities and equity to finance projects. Financial risk is usually considered for companies with high leverage. A debt to equity ratio of 1 to 1.5 is a good ratio.

The ideal debt to equity ratio will be different depending on the industry. The debt ratio is a measure of total liabilities against total assets. It shows the amount of assets provided through debt rather than equity.

Starbucks had less debt than the other coffee shop. Starbucks has $29.37 billion in assets, which makes the debt-ratio 0.56. A debt-ratio more than one indicates that a lot of debt is funded by assets.

Starbucks has a debt ratio that is too high because it is in an industry with volatile cash flows, which most businesses take on little debt. Starbucks had $549,800,000 in short-term and current debt on its balance sheet for the quarter ending June 28, 2015. Starbucks's asset turnover is less than one hundredth of one percent.

Starbucks's asset turnover averaged 1.3x for the fiscal years ending in October 2016 to 2020. Starbucks's asset turnover was 1.3x from October 2016 to 2020. Starbucks's asset turnover peaked in October 2016 at 1.6x.