Stock Analysis on Net

Starbucks Corp. (NASDAQ:SBUX)

Analysis of Solvency Ratios 

Microsoft Excel

Solvency Ratios (Summary)

Starbucks Corp., solvency ratios

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Debt Ratios
Debt to equity 8.07 0.72
Debt to equity (including operating lease liability) 8.07 0.72
Debt to capital 2.41 1.57 1.96 2.26 0.89 0.42
Debt to capital (including operating lease liability) 1.58 1.29 1.46 2.26 0.89 0.42
Debt to assets 0.53 0.47 0.54 0.58 0.39 0.27
Debt to assets (including operating lease liability) 0.84 0.75 0.84 0.58 0.39 0.27
Financial leverage 20.66 2.64
Coverage Ratios
Interest coverage 9.76 12.40 3.66 14.49 34.94 47.68
Fixed charge coverage 3.08 3.61 1.58 3.52 4.62 4.38

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Starbucks Corp. debt to capital ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Starbucks Corp. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Starbucks Corp. debt to assets ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Starbucks Corp. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Starbucks Corp. interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Starbucks Corp. fixed charge coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Debt to Equity

Starbucks Corp., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data (US$ in thousands)
Current portion of long-term debt 1,749,000 998,900 1,249,900 349,900
Long-term debt, excluding current portion 13,119,900 13,616,900 14,659,600 11,167,000 9,090,200 3,932,600
Total debt 14,868,900 14,615,800 15,909,500 11,167,000 9,440,100 3,932,600
 
Shareholders’ equity (deficit) (8,706,600) (5,321,200) (7,805,100) (6,232,200) 1,169,500 5,450,100
Solvency Ratio
Debt to equity1 8.07 0.72
Benchmarks
Debt to Equity, Competitors2
Carnival Corp. & plc 2.74 1.31 0.45 0.42 0.38
McDonald’s Corp.
Debt to Equity, Sector
Consumer Services 37.57 16.31 5.20 2.63 1.62
Debt to Equity, Industry
Consumer Discretionary 1.59 2.31 2.46 2.40 2.34

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity (deficit)
= 14,868,900 ÷ -8,706,600 =

2 Click competitor name to see calculations.


Debt to Equity (including Operating Lease Liability)

Starbucks Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data (US$ in thousands)
Current portion of long-term debt 1,749,000 998,900 1,249,900 349,900
Long-term debt, excluding current portion 13,119,900 13,616,900 14,659,600 11,167,000 9,090,200 3,932,600
Total debt 14,868,900 14,615,800 15,909,500 11,167,000 9,440,100 3,932,600
Current portion of operating lease liability 1,245,700 1,251,300 1,248,800
Operating lease liability, excluding current portion 7,515,200 7,738,000 7,661,700
Total debt (including operating lease liability) 23,629,800 23,605,100 24,820,000 11,167,000 9,440,100 3,932,600
 
Shareholders’ equity (deficit) (8,706,600) (5,321,200) (7,805,100) (6,232,200) 1,169,500 5,450,100
Solvency Ratio
Debt to equity (including operating lease liability)1 8.07 0.72
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Carnival Corp. & plc 2.85 1.38 0.45 0.42 0.38
McDonald’s Corp.
Debt to Equity (including Operating Lease Liability), Sector
Consumer Services 48.41 21.25 6.43 2.63 1.62
Debt to Equity (including Operating Lease Liability), Industry
Consumer Discretionary 1.92 2.70 2.71 2.40 2.34

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Shareholders’ equity (deficit)
= 23,629,800 ÷ -8,706,600 =

2 Click competitor name to see calculations.


Debt to Capital

Starbucks Corp., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data (US$ in thousands)
Current portion of long-term debt 1,749,000 998,900 1,249,900 349,900
Long-term debt, excluding current portion 13,119,900 13,616,900 14,659,600 11,167,000 9,090,200 3,932,600
Total debt 14,868,900 14,615,800 15,909,500 11,167,000 9,440,100 3,932,600
Shareholders’ equity (deficit) (8,706,600) (5,321,200) (7,805,100) (6,232,200) 1,169,500 5,450,100
Total capital 6,162,300 9,294,600 8,104,400 4,934,800 10,609,600 9,382,700
Solvency Ratio
Debt to capital1 2.41 1.57 1.96 2.26 0.89 0.42
Benchmarks
Debt to Capital, Competitors2
Carnival Corp. & plc 0.73 0.57 0.31 0.30 0.28
McDonald’s Corp. 1.15 1.26 1.32 1.25 1.12
Debt to Capital, Sector
Consumer Services 0.97 0.94 0.84 0.72 0.62
Debt to Capital, Industry
Consumer Discretionary 0.61 0.70 0.71 0.71 0.70

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 14,868,900 ÷ 6,162,300 = 2.41

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. Starbucks Corp. debt to capital ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Debt to Capital (including Operating Lease Liability)

Starbucks Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data (US$ in thousands)
Current portion of long-term debt 1,749,000 998,900 1,249,900 349,900
Long-term debt, excluding current portion 13,119,900 13,616,900 14,659,600 11,167,000 9,090,200 3,932,600
Total debt 14,868,900 14,615,800 15,909,500 11,167,000 9,440,100 3,932,600
Current portion of operating lease liability 1,245,700 1,251,300 1,248,800
Operating lease liability, excluding current portion 7,515,200 7,738,000 7,661,700
Total debt (including operating lease liability) 23,629,800 23,605,100 24,820,000 11,167,000 9,440,100 3,932,600
Shareholders’ equity (deficit) (8,706,600) (5,321,200) (7,805,100) (6,232,200) 1,169,500 5,450,100
Total capital (including operating lease liability) 14,923,200 18,283,900 17,014,900 4,934,800 10,609,600 9,382,700
Solvency Ratio
Debt to capital (including operating lease liability)1 1.58 1.29 1.46 2.26 0.89 0.42
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Carnival Corp. & plc 0.74 0.58 0.31 0.30 0.28
McDonald’s Corp. 1.10 1.18 1.21 1.25 1.12
Debt to Capital (including Operating Lease Liability), Sector
Consumer Services 0.98 0.96 0.87 0.72 0.62
Debt to Capital (including Operating Lease Liability), Industry
Consumer Discretionary 0.66 0.73 0.73 0.71 0.70

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 23,629,800 ÷ 14,923,200 = 1.58

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to capital ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. Starbucks Corp. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022.

Debt to Assets

Starbucks Corp., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data (US$ in thousands)
Current portion of long-term debt 1,749,000 998,900 1,249,900 349,900
Long-term debt, excluding current portion 13,119,900 13,616,900 14,659,600 11,167,000 9,090,200 3,932,600
Total debt 14,868,900 14,615,800 15,909,500 11,167,000 9,440,100 3,932,600
 
Total assets 27,978,400 31,392,600 29,374,500 19,219,600 24,156,400 14,365,600
Solvency Ratio
Debt to assets1 0.53 0.47 0.54 0.58 0.39 0.27
Benchmarks
Debt to Assets, Competitors2
Carnival Corp. & plc 0.62 0.50 0.26 0.24 0.23
McDonald’s Corp. 0.66 0.71 0.72 0.95 0.87
Debt to Assets, Sector
Consumer Services 0.60 0.59 0.51 0.51 0.48
Debt to Assets, Industry
Consumer Discretionary 0.37 0.42 0.44 0.46 0.46

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 14,868,900 ÷ 27,978,400 = 0.53

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio A solvency ratio calculated as total debt divided by total assets. Starbucks Corp. debt to assets ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Debt to Assets (including Operating Lease Liability)

Starbucks Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data (US$ in thousands)
Current portion of long-term debt 1,749,000 998,900 1,249,900 349,900
Long-term debt, excluding current portion 13,119,900 13,616,900 14,659,600 11,167,000 9,090,200 3,932,600
Total debt 14,868,900 14,615,800 15,909,500 11,167,000 9,440,100 3,932,600
Current portion of operating lease liability 1,245,700 1,251,300 1,248,800
Operating lease liability, excluding current portion 7,515,200 7,738,000 7,661,700
Total debt (including operating lease liability) 23,629,800 23,605,100 24,820,000 11,167,000 9,440,100 3,932,600
 
Total assets 27,978,400 31,392,600 29,374,500 19,219,600 24,156,400 14,365,600
Solvency Ratio
Debt to assets (including operating lease liability)1 0.84 0.75 0.84 0.58 0.39 0.27
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Carnival Corp. & plc 0.65 0.53 0.26 0.24 0.23
McDonald’s Corp. 0.92 0.98 1.00 0.95 0.87
Debt to Assets (including Operating Lease Liability), Sector
Consumer Services 0.78 0.77 0.63 0.51 0.48
Debt to Assets (including Operating Lease Liability), Industry
Consumer Discretionary 0.45 0.50 0.48 0.46 0.46

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 23,629,800 ÷ 27,978,400 = 0.84

2 Click competitor name to see calculations.

Solvency ratio Description The company
Debt to assets ratio (including operating lease liability) A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. Starbucks Corp. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022 not reaching 2020 level.

Financial Leverage

Starbucks Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data (US$ in thousands)
Total assets 27,978,400 31,392,600 29,374,500 19,219,600 24,156,400 14,365,600
Shareholders’ equity (deficit) (8,706,600) (5,321,200) (7,805,100) (6,232,200) 1,169,500 5,450,100
Solvency Ratio
Financial leverage1 20.66 2.64
Benchmarks
Financial Leverage, Competitors2
Carnival Corp. & plc 4.39 2.61 1.78 1.73 1.68
McDonald’s Corp.
Financial Leverage, Sector
Consumer Services 62.38 27.53 10.23 5.13 3.37
Financial Leverage, Industry
Consumer Discretionary 4.27 5.45 5.60 5.21 5.08

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity (deficit)
= 27,978,400 ÷ -8,706,600 =

2 Click competitor name to see calculations.


Interest Coverage

Starbucks Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data (US$ in thousands)
Net earnings attributable to Starbucks 3,281,600 4,199,300 928,300 3,599,200 4,518,300 2,884,700
Add: Net income attributable to noncontrolling interest 1,800 1,000 (3,600) (4,600) (300) 200
Add: Income tax expense 948,500 1,156,600 239,700 871,600 1,262,000 1,432,600
Add: Interest expense 482,900 469,800 437,000 331,000 170,300 92,500
Earnings before interest and tax (EBIT) 4,714,800 5,826,700 1,601,400 4,797,200 5,950,300 4,410,000
Solvency Ratio
Interest coverage1 9.76 12.40 3.66 14.49 34.94 47.68
Benchmarks
Interest Coverage, Competitors2
Carnival Corp. & plc -4.95 -10.46 15.86 17.53 14.46
McDonald’s Corp. 8.70 6.04 8.15 8.97 10.31
Interest Coverage, Sector
Consumer Services 2.52 -0.16 10.37 13.49 13.84
Interest Coverage, Industry
Consumer Discretionary 10.85 6.41 9.19 9.91 10.44

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 4,714,800 ÷ 482,900 = 9.76

2 Click competitor name to see calculations.

Solvency ratio Description The company
Interest coverage ratio A solvency ratio calculated as EBIT divided by interest payments. Starbucks Corp. interest coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.

Fixed Charge Coverage

Starbucks Corp., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Oct 2, 2022 Oct 3, 2021 Sep 27, 2020 Sep 29, 2019 Sep 30, 2018 Oct 1, 2017
Selected Financial Data (US$ in thousands)
Net earnings attributable to Starbucks 3,281,600 4,199,300 928,300 3,599,200 4,518,300 2,884,700
Add: Net income attributable to noncontrolling interest 1,800 1,000 (3,600) (4,600) (300) 200
Add: Income tax expense 948,500 1,156,600 239,700 871,600 1,262,000 1,432,600
Add: Interest expense 482,900 469,800 437,000 331,000 170,300 92,500
Earnings before interest and tax (EBIT) 4,714,800 5,826,700 1,601,400 4,797,200 5,950,300 4,410,000
Add: Operating lease costs 1,554,800 1,579,200 1,573,600 1,441,700 1,424,500 1,185,700
Earnings before fixed charges and tax 6,269,600 7,405,900 3,175,000 6,238,900 7,374,800 5,595,700
 
Interest expense 482,900 469,800 437,000 331,000 170,300 92,500
Operating lease costs 1,554,800 1,579,200 1,573,600 1,441,700 1,424,500 1,185,700
Fixed charges 2,037,700 2,049,000 2,010,600 1,772,700 1,594,800 1,278,200
Solvency Ratio
Fixed charge coverage1 3.08 3.61 1.58 3.52 4.62 4.38
Benchmarks
Fixed Charge Coverage, Competitors2
Carnival Corp. & plc -4.28 -8.34 15.86 17.53 14.46
McDonald’s Corp. 4.32 3.28 3.94 4.12 4.34
Fixed Charge Coverage, Sector
Consumer Services 1.75 0.49 4.30 4.91 4.85
Fixed Charge Coverage, Industry
Consumer Discretionary 5.42 3.50 4.49 4.89 5.30

Based on: 10-K (reporting date: 2022-10-02), 10-K (reporting date: 2021-10-03), 10-K (reporting date: 2020-09-27), 10-K (reporting date: 2019-09-29), 10-K (reporting date: 2018-09-30), 10-K (reporting date: 2017-10-01).

1 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 6,269,600 ÷ 2,037,700 = 3.08

2 Click competitor name to see calculations.

Solvency ratio Description The company
Fixed charge coverage ratio A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. Starbucks Corp. fixed charge coverage ratio improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022.