Starbucks Corp. (NASDAQ:SBUX)

Debt to Capital

The debt to capital ratio exhibits fluctuations over the periods analyzed, beginning at 1.46 and generally ranging between approximately 1.90 and 2.40. It shows a slight upward trend from late 2019 through early 2023, peaking intermittently above 2.30, before decreasing toward the end of the series, reaching around 1.96 in early 2025. This suggests variability in the company’s use of debt relative to its capital structure with some periods of increased leverage followed by deleveraging.

Debt to Capital (Including Operating Lease Liability)

This ratio remains notably lower than the standard debt to capital ratio, starting at 1.46 and exhibiting a more stable and modest range mostly between 1.29 and 1.60. There is a slight decrease observed from late 2019 to late 2020, after which it fluctuates narrowly, indicating consistent recognition of lease liabilities as part of overall debt, leading to a more conservative leverage measure throughout the periods.

Debt to Assets

The debt to assets ratio starts at 0.46 and experiences some variance, generally oscillating between about 0.49 and 0.58. The ratio shows a mild increasing trend during certain quarters, particularly through 2020 and into 2022, then slightly declines toward the latest periods, indicating a relatively stable proportion of debt relative to total assets, but with no dramatic increases in financial risk from asset financing.

Debt to Assets (Including Operating Lease Liability)

Inclusion of operating lease liabilities notably increases the debt to assets ratio, starting from 0.46 and rising to peaks around 0.88 during mid-2020. After these peaks, the ratio shows a slow declining trend but remains elevated compared to the basic debt to assets ratio, generally hovering above 0.80. This highlights the significant impact that lease obligations have on the company's reported liabilities and overall asset financing risk.

Interest Coverage

The interest coverage ratio, available for later periods, begins at a high of 14.49 and declines sharply through 2020, reaching a low near 2.78. Post-2020, the ratio recovers steadily, moving back above 10 by 2021 and maintaining a range between about 8.7 and 12.95 thereafter. This indicates that the company's ability to cover interest expenses weakened significantly during the earlier part of the pandemic but has since improved to more comfortable coverage levels, reflecting better operational earnings or reduced interest obligations.

The financial data indicates several noteworthy trends in the company's leverage and equity position over the examined periods.

Total Debt

The total debt shows an overall increasing trend from December 2018 through mid-2020, rising from approximately 9.13 billion US dollars to a peak around 16.83 billion US dollars in June 2020. This increase demonstrates significant borrowing, potentially to support operations or strategic initiatives during that time. After this peak, debt levels moderately declined, stabilizing around 15.5 billion US dollars towards the end of 2024 and into early 2025. This stabilization suggests a controlled debt management effort following earlier expansions.

Shareholders' Deficit

The shareholders’ deficit displays a persistent negative balance throughout the periods, indicating that liabilities exceed assets consistently. Starting at approximately -2.88 billion US dollars in December 2018, the deficit worsens markedly, reaching a low of about -8.77 billion US dollars by April 2022. This deterioration signals declining net equity, which could reflect accumulated losses or other equity-reducing events. From mid-2022 onward, the deficit shows signs of gradual improvement, decreasing in magnitude to about -7.62 billion US dollars by March 2025, though it remains substantially negative. This recovery may indicate efforts to improve financial health or asset performance.

Debt to Equity Ratio

No data is provided for the debt to equity ratio; hence, no analysis can be performed on this metric. However, given the negative shareholders’ equity during all periods, calculating this ratio would typically be problematic or not meaningful.

Overall, the data reveals a period marked by increased leverage accompanied by significant negative equity, reflecting financial stress or strategic financial structuring. The stabilization of debt and partial improvement in shareholders’ deficit in recent periods suggests attempts toward financial stabilization, yet the sustained negative equity underscores ongoing capital structure challenges.

The financial data reveals several notable trends regarding total debt, shareholders' deficit, and the debt to equity ratio over the analyzed quarterly periods.

Total Debt (Including Operating Lease Liability)

The total debt showed a general increase from the initial value of approximately $9.13 billion at the end of 2018, rising significantly to over $20 billion by the end of 2019. This upward trend continued during the early part of 2020, peaking near $25.7 billion in mid-2020. Following this peak, total debt values fluctuated moderately around the $24 to $26 billion range through 2021 and 2022, demonstrating relative stability with minor increases and decreases. From 2023 onwards, the debt level remained consistently above $24 billion, ending slightly higher by the first quarter of 2025 at approximately $26 billion, indicating sustained high leverage.

Shareholders’ Deficit

The shareholders' deficit exhibited an overall increasing deficit trend (more negative values) throughout the period. Beginning around negative $2.88 billion in late 2018, the deficit worsened to nearly negative $6.76 billion by the end of 2019. It continued to deepen, reaching a peak negative deficit of approximately negative $8.7 billion during 2021. Thereafter, the deficit fluctuated, improving somewhat by reducing the negative value to around negative $7.99 billion in early 2023, but then fluctuated again, ending near negative $7.62 billion in early 2025. This pattern suggests ongoing challenges in equity position but with some episodic recoveries.

Debt to Equity Ratio (Including Operating Lease Liability)

Data for the debt to equity ratio is not explicitly provided across the periods. Therefore, no direct quantitative analysis or trend interpretation can be made regarding this metric from the given information.

Overall, the noticeable increase and persistence of high total debt levels alongside a deepening shareholders’ deficit indicate a high financial leverage environment. The fluctuations in the shareholders’ deficit suggest variable equity pressures, possibly influenced by operational or market conditions affecting retained earnings and accumulated deficits. The available data imply that the company's balance sheet has been under strain, with significant leverage maintained through the last observed periods.

Total Debt

The total debt demonstrated a steady increase from December 2018 through June 2020, rising from approximately 9.13 billion US dollars to a peak of 16.83 billion US dollars. Subsequently, the debt amount showed some fluctuations but mostly maintained a relatively high level around 15.5 billion US dollars from late 2020 to early 2025, with minor decreases and increases over this period. This suggests that the company increased its leverage significantly in the early part of the timeline and managed to sustain most of that debt level through subsequent years.

Total Capital

Total capital showed notable volatility across the observed quarters. Starting at around 6.25 billion US dollars in December 2018, total capital experienced a sharp drop to below 4.18 billion by the first quarter of 2019 but then rebounded and fluctuated between roughly 4.9 billion and 9.3 billion through 2021. There was a declining trend again from 2022 onward, with values mostly ranging between 6.3 billion to just above 8 billion. The fluctuations reflect varying capital base adjustments, potentially due to operational changes, equity movements, or alterations in retained earnings.

Debt to Capital Ratio

The debt to capital ratio exhibited considerable fluctuations throughout the period, mostly remaining above 1.5 and often exceeding 2, indicating a capital structure predominantly weighted by debt. The ratio started at 1.46 in December 2018, then increased and oscillated, reaching highest values above 2.3 multiple times in 2019, 2022, and early 2023. Toward the most recent quarters, the ratio showed a declining trend, decreasing from about 2.35 in early 2024 to approximately 1.96 by March 2025. This pattern implies periods of high leverage but some recent efforts to reduce the proportional debt load relative to total capital.

The quarterly financial data reveals several notable trends regarding the company's leverage and capital structure over the given periods.

Total Debt (including operating lease liability)

The total debt exhibited an overall increasing trend from December 2018 through the mid-2020 period. Starting at approximately $9.13 billion in late 2018, debt grew significantly to a peak of around $25.72 billion by mid-2020. Following this peak, the debt levels showed relative stability, fluctuating moderately between approximately $23.8 billion and $26.0 billion through early 2025. This pattern may indicate an initial period of increasing leverage, followed by a phase of stabilization.

Total Capital (including operating lease liability)

Total capital demonstrated more volatility compared to debt over the analyzed periods. Beginning at about $6.25 billion in late 2018, total capital dropped sharply by early 2019 but recovered and fluctuated between roughly $4.18 billion and $18.38 billion over the subsequent years. Notably, capital appeared to peak around late 2024 at approximately $18.38 billion before leveling off near $18.39 billion in early 2025. The fluctuations suggest changing equity levels or adjustments in capital structure components, reflecting possibly impacts of operational performance, investments, or accounting changes.

Debt to Capital Ratio (including operating lease liability)

The debt to capital ratio showed significant variability over the period but generally remained above 1.0, indicating that total debt consistently exceeded total capital during the analyzed quarters. This ratio ranged from a low of about 1.29 in the third quarter of 2021 to highs above 2.2 in early 2019 and late 2019, reflecting periods when debt increased disproportionately relative to capital. After the peaks in 2019, the ratio mostly stabilized between 1.4 and 1.6 through 2025, suggesting a more balanced debt and capital relationship in recent periods.

In summary, the data indicates an initial substantial increase in leverage, with total debt rising sharply through mid-2020, followed by stabilization in the following years. Total capital was more volatile, with notable fluctuations indicative of changing basis of equity or other capital components. The sustained debt-to-capital ratio greater than one suggests the company operated with a higher reliance on debt relative to capital throughout the period, albeit with some moderation in leverage following earlier peaks.

Total Debt

The total debt exhibited a general increasing trend from December 2018 through mid-2020, growing from approximately 9.13 billion US dollars to over 16.8 billion US dollars by June 2020. This peak was followed by a gradual decline through late 2020 and 2021, stabilizing around 14.6 to 15.1 billion US dollars in this period. From 2022 onwards, the total debt values fluctuated slightly but generally plateaued near 15.5 billion US dollars towards early 2025.

Total Assets

Total assets showed significant variability over the observed quarters. Initially, assets decreased from around 20.0 billion US dollars at the end of 2018 to about 17.6 billion in March 2019, then rebounded to nearly 27.7 billion by late 2019. Afterward, asset values remained fairly stable with minor fluctuations, oscillating around the 28 to 31 billion US dollars range from 2020 to 2025, with occasional peaks surpassing 31 billion US dollars in 2021 and again near the end of 2024.

Debt to Assets Ratio

The debt to assets ratio started at 0.46 at the end of 2018 and increased steadily to peak levels above 0.55 during 2019 and mid-2020, indicating a higher leverage position. Following that, the ratio demonstrated a gradual downward correction, decreasing to a range between 0.47 and 0.54 over late 2020 and 2021. From 2022 to early 2025, the ratio remained relatively stable, hovering between 0.49 and 0.53, suggesting a consistent balance between debt and asset growth.

Overall, the data reveals that the company undertook increased leverage from 2018 through mid-2020, coinciding with asset growth and possibly strategic financing activities. Subsequent debt reduction and asset stability contributed to a lower and more stable debt-to-assets ratio in recent years. This pattern suggests an emphasis on managing debt levels relative to asset size, maintaining leverage within a defined range after a period of expansion.

Total Debt (including operating lease liability)

The total debt shows a general upward trend from December 2018 through the mid-2020 period, increasing from approximately 9.1 billion USD to a peak above 25.7 billion USD by the end of 2024. There is a pronounced jump between September 2019 and December 2019, where debt nearly doubled. Following March 2020, debt continued to accumulate, reaching the highest levels throughout 2024. Despite some minor fluctuations, debt stabilizes around the 25 billion USD mark starting late 2020 and remains relatively steady through early 2025.

Total Assets

Total assets fluctuate over the observed period but generally trend upwards, starting at about 20 billion USD in December 2018 and increasing to over 31.6 billion USD by late 2024. A notable surge occurs between September 2019 and December 2019, coinciding with the increase in total debt. Subsequently, asset levels exhibit moderate variation but maintain an overall rise, with occasional declines followed by recovery periods. This pattern indicates ongoing asset accumulation despite volatility.

Debt to Assets Ratio (including operating lease liability)

The debt to assets ratio displays an increasing trend from 0.46 in December 2018 to a peak of approximately 0.88 during mid-2020, reflecting a growing leverage position leading up to and during the early stage of the COVID-19 pandemic. After mid-2020, the ratio declines to around 0.75 by the beginning of 2022, suggesting some deleveraging or asset growth outpacing debt expansion during this phase. From 2022 onward, the ratio fluctuates between approximately 0.81 and 0.86, indicating relative stability in leverage levels in recent quarters and a maintained balance between debt and asset growth.

The analysis of the available quarterly financial data reveals the following key trends and observations:

Total Assets

Total assets experienced fluctuations over the observed quarters. Starting at approximately 19.98 billion USD, the total assets showed an initial decline by the first quarter of 2019, followed by a rebound mid-2019 and peak near the end of 2019, reaching about 27.73 billion USD. During 2020, assets remained relatively elevated, fluctuating around 27 to 29 billion USD. Entering 2021, the figures hovered near 28 to 31 billion USD with some volatility. From early 2022 through 2024, total assets showed a steady but modest increase from around 28.8 billion to just over 31 billion USD, peaking near the end of 2024. The slight decrease in the last quarter of the dataset suggests minor variability but overall stability in asset levels within this period.

Shareholders’ Deficit

The shareholders’ deficit consistently remained in a negative range, indicating an excess of liabilities over shareholders’ equity. The deficit started at approximately -2.88 billion USD at the end of 2018 and worsened significantly into 2019, reaching over -6.75 billion USD by the end of 2019. A further decline continued into early 2020, with the deficit expanding beyond -8.6 billion USD in mid-2020. However, from late 2020 onward, there was a noticeable improvement as the deficit decreased in absolute terms, reaching values closer to -5.3 billion USD by late 2021. The deficit then fluctuated between around -7.4 billion and -8.7 billion USD from 2022 through early 2023, indicating periods of increased negative equity. From mid-2023 onwards, the shareholders’ deficit showed a gradual recovery trend, decreasing in magnitude towards approximately -7.6 billion USD by the end of the dataset in early 2025.

Financial Leverage

No data was provided for financial leverage ratios across the periods, precluding analysis of this metric.

In summary, total assets demonstrated a general upward trajectory despite some quarter-to-quarter variability, signaling growth and asset accumulation over the observed time frame. Conversely, the shareholders’ deficit portrayed a challenging equity position with negative values persistent throughout, yet with some signs of recovery after peaking around mid-2020. The lack of data on financial leverage prevents insights into the relationship between debt levels and equity. These patterns suggest ongoing financial management challenges related to equity erosion, even amid asset growth.

The analysis of the quarterly financial data reveals several notable trends in the operating profitability and financing costs over the observed periods. The earnings before interest and tax (EBIT) exhibit significant variability, reflecting periods of both expansion and contraction in core operating earnings.

EBIT Trends

EBIT shows an overall fluctuating pattern with notable dips and rises. Beginning with a high of approximately 1.04 billion US dollars in the final quarter of 2018, the EBIT declines in early 2019 but then experiences a substantial rise to nearly 1.76 billion in mid-2019. A marked decline occurs in the first half of 2020, with EBIT turning negative (-691.2 million US dollars) in the quarter ending June 28, 2020, likely reflecting the adverse impacts of external challenges during that period. Recovery follows in the subsequent quarters, with EBIT rebounding and reaching a peak of over 2.36 billion US dollars by October 2021.

Post-October 2021, EBIT levels off with moderate fluctuations generally staying between 1.0 and 1.7 billion US dollars, with some decline towards the latest quarter ending March 2025, where EBIT reduces to approximately 629.4 million US dollars. This trend suggests operational volatility with intermittent recovery periods following the sharp downturn observed in 2020.

Interest Expense Pattern

Interest expenses demonstrate a steady incremental trend throughout the quarters. Starting around 75 million US dollars in late 2018, interest costs gradually increase to a peak of roughly 143.2 million US dollars by the quarter ending December 2023. This pattern indicates growing financing costs over time, which may be attributed to increased debt levels or rising interest rates.

A slight reduction is noted in the most recent quarters, with interest expense decreasing to approximately 127.3 million US dollars by March 2025, possibly implying either debt repayment or refinancing activities at more favorable interest rates.

Interest Coverage Ratio

The interest coverage ratio, representing EBIT relative to interest expense, displays considerable volatility with initial historic values not provided, but starting from mid-2019 periods, the ratio oscillates markedly. Early 2019 quarters show high interest coverage ratios exceeding 14 times, which then decline sharply during the crisis period in 2020 to lows near 2.78 times, indicating reduced ability to cover interest payments from earnings.

Following this trough, the ratio improves significantly, returning to levels above 10 in 2021 and maintaining moderate strength through subsequent periods. This pattern confirms recovery in operational earnings relative to financing costs after the mid-2020 downturn. However, there is a gradual downtrend in the interest coverage ratio starting from early 2024, reflecting either a decrease in EBIT, an increase in interest expenses, or both.

In summary, the financial data illustrate that operating profitability experienced substantial fluctuations, with a sharp contraction in the first half of 2020 followed by a phase of recovery and expansion. Financing costs steadily increased over the entire period but showed some decline in the most recent quarters. Interest coverage ratios corroborate these dynamics by tracking the company's ability to meet interest obligations from earnings, highlighting periods of stress and subsequent recovery. Recent trends suggest cautious monitoring may be necessary as coverage ratios show a declining tendency in late periods, possibly indicating emerging financial pressures.