Starbucks the Short-Term Liabilities of Starbucks Are Essay

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Starbucks

The short-term liabilities of Starbucks are $2.075 billion. The long-term debt is $549.5 million. Total long-term liabilities -- not the same thing as long-term debt -- are $899.7 million.

The market value of equity of Starbucks (market cap) is $31.17 billion.

The debt ratio of Starbucks is as follows: 2975.5 / 7360.4 = .404

The debt to equity ratio of Starbucks is as follows: 2975.5 / 4384.9 = 0.678

The short-term debt to equity ratio is as follows: 2075.8 / 4384.9 = 0.473

The short-term debt ratio is as follows: 2075.8 / 7360.4 = 0.282

The long-term debt to equity ratio is as follows: 899.7 / 4384.9 = .205

The long-term debt ratios is as follows: 899.7 / 7360.4 = .112

I believe that this debt ratio is healthy. There are two reasons for this. The first is that Starbucks has a low degree of leverage with a debt ratio of this nature.

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The company is primarily financed through equity. Moreover, the level of long-term debt has remained unchanged for several years and this indicates that the company has control of its finances. As capital structures go, an equity-oriented capital structure implies a company that sees itself as having a long-term growth trajectory. This is the case for Starbucks, so an equity-oriented structure is a good one for Starbucks.

3. The debt-to-equity ratio for Dunkin Brands is as follows: 2841.05 / 306.24 = 9.277

The debt-to-equity ratio for McDonalds is as follows: 17,341 / 14634.2 = 1.185

The highest D/E ratio of these three companies is at Dunkin Brands. This company is almost entirely financed by debt and has a very low equity level. The company's long-term debt situation is not worsening very quickly, but the company has struggled to build the book value of its equity in recent years. Dunkin has barely turned any.....

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