Starbucks the Short-Term Liabilities of Starbucks Are Essay

Open, View, and/or
Download this Document

Total Length: 702 words ( 2 double-spaced pages)

Total Sources: 3

Page 1 of 2

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.

Stuck Writing Your "Starbucks the Short-Term Liabilities of Starbucks Are" Essay?

View All Our Example Starbucks the Short-Term Liabilities of Starbucks Are Essay

Have A Custom Example Essay Written

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.....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Starbucks The Short-Term Liabilities Of Starbucks Are" (2011, November 28) Retrieved May 21, 2025, from
https://www.aceyourpaper.com/essays/starbucks-short-term-liabilities-starbucks-53111

Latest MLA Format (8th edition)

Copy Reference
"Starbucks The Short-Term Liabilities Of Starbucks Are" 28 November 2011. Web.21 May. 2025. <
https://www.aceyourpaper.com/essays/starbucks-short-term-liabilities-starbucks-53111>

Latest Chicago Format (16th edition)

Copy Reference
"Starbucks The Short-Term Liabilities Of Starbucks Are", 28 November 2011, Accessed.21 May. 2025,
https://www.aceyourpaper.com/essays/starbucks-short-term-liabilities-starbucks-53111
   

Open, View, and/or
Download this Document
order custom essay example