Table of Contents
- 1 Why does Starbucks have a negative book value?
- 2 Why is Starbucks debt to equity ratio negative?
- 3 What are Starbucks liabilities?
- 4 Why is Starbucks retained earnings negative?
- 5 What is Starbucks enterprise value?
- 6 What is Starbucks PE ratio?
- 7 What are the key financial ratios of Starbucks?
- 8 What is the strategic analysis of Starbucks?
Why does Starbucks have a negative book value?
The increased liabilities and generous returns to shareholders have been the driving force behind the company going into negative shareholder equity, which is not sustainable in the long term.
Why is Starbucks debt to equity ratio negative?
For starters, when shareholder’s equity is negative, it means that the company’s total liabilities are higher than its total assets, at a particular point in time. Below you can see a chart of Starbucks’ debt to equity ratio, which outlines how this ratio has changed drastically since early 2017.
What does it mean when a stock has a negative book value?
If book value is negative, where a company’s liabilities exceed its assets, this is known as a balance sheet insolvency. It is equal to a firm’s total assets minus its total liabilities, which is the net asset value or book value of the company as a whole.
What is the beta for Starbucks?
0.81
Stock Price History
| Beta (5Y Monthly) | 0.81 |
|---|---|
| 52-Week Change 3 | 12.98\% |
| S&P500 52-Week Change 3 | 29.19\% |
| 52 Week High 3 | 126.32 |
| 52 Week Low 3 | 95.92 |
What are Starbucks liabilities?
Compare SBUX With Other Stocks
| Starbucks Annual Total Liabilities (Millions of US $) | |
|---|---|
| 2020 | $37,174 |
| 2019 | $25,451 |
| 2018 | $22,981 |
| 2017 | $8,909 |
Why is Starbucks retained earnings negative?
The dividends paid by Starbucks have been fairly consistent over this two-year snapshot. The share repurchases have been increasingly aggressive, which has resulted in the retained earnings going negative. With the decrease in net income and aggressive share repurchases, the retained earnings have turned negative.
What does a negative valuation mean?
Simply put, a negative enterprise value means that a company has more cash than it would need to pay off any debt and buy back all its stocks in one go, if it really wanted to.
What does negative net worth indicate?
Your net worth can tell you many things. If the figure is negative, it means you owe more than you own. If the number is positive, you own more than you owe. Negative net worth does not necessarily indicate that you are financially irresponsible; it just means that—right now—you have more liabilities than assets.
What is Starbucks enterprise value?
Starbucks’s latest twelve months enterprise value (ev) is $147.9 billion. Starbucks’s operated at median enterprise value (ev) of $112.2 billion from fiscal years ending October 2017 to 2021.
What is Starbucks PE ratio?
Compare 2 to 12 securities….PE Ratio Related Metrics.
| PS Ratio | 4.678 |
|---|---|
| Price | 114.68 |
| Earnings Yield | 3.10\% |
| Market Cap | 134.54B |
| PEGY Ratio | 0.0891 |
What is Starbucks total equity?
Starbucks’s total equity last quarter was -$5.314 billion. Starbucks’s total equity for fiscal years ending October 2017 to 2021 averaged -$2.542 billion. Starbucks’s operated at median total equity of -$5.314 billion from fiscal years ending October 2017 to 2021.
What is Starbucks debt to equity ratio?
Compare SBUX With Other Stocks
| Starbucks Debt/Equity Ratio Historical Data | ||
|---|---|---|
| Date | Long Term Debt | Debt to Equity Ratio |
| 2020-03-31 | $35.01B | -4.65 |
| 2019-12-31 | $34.49B | -5.10 |
| 2019-09-30 | $25.45B | -4.09 |
What are the key financial ratios of Starbucks?
Starbucks relies on operating leases, which are off-balance-sheet obligations, and carries a substantial amount of debt. Six useful ratios to analyze Starbucks are the fixed-charge coverage ratio, the debt/equity ratio, the operating margin, net margin, return on equity, and return on invested capital.
What is the strategic analysis of Starbucks?
Strategic Analysis Of Starbucks Corporation. Starbucks, with its size and scale, has the power to take advantage of its suppliers but it maintains a Fair trade certified coffee under its coffee and farmer equity (C.A.F.E) program, which gives its suppliers a fair partnership status, which yields them some moderately, low power.
How does Starbucks’ return on equity compare to its competitors?
Firms with strong economic moats typically have higher ROE compared to rivals. As of June 28, 2015, Starbucks’ ROE stands at 49.3\%, which is significantly higher than its competitors’ average return of 10.7\%.
How much long-term debt does Starbucks have?
Checking the financial health of Starbucks is an important step in ratio analysis. At the end of fiscal year 2019, the company reported over $11.17 billion in long-term debt. Companies must have sufficient funds available to cover their contractual obligations.