A Look Into Starbucks' Debt
Portfolio Pulse from Benzinga Insights
Starbucks Inc. (NASDAQ:SBUX) has seen its shares drop by 5.96% over the past three months. The company's total debt stands at $15.49 billion, with long-term debt at $13.54 billion and current debt at $1.94 billion. After adjusting for $3.07 billion in cash-equivalents, the net debt is $12.41 billion. The debt ratio, a measure of financial leverage, is 0.54, considering Starbucks's $28.61 billion in total assets.
July 21, 2023 | 8:30 pm
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Starbucks has a total debt of $15.49 billion and a debt ratio of 0.54. The company's shares have dropped by 5.96% over the past three months.
The high level of debt and the recent drop in share price could indicate financial instability for Starbucks. The debt ratio of 0.54 suggests that more than half of the company's assets are financed by debt, which could increase the risk of defaulting on loans if interest rates were to increase.
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