Industry 2018 2017 Amounts Answer Amounts Answer Average Debt (Leverage) (Long-term Solvency) Ratios $ Debt to Total Liabilities 8,908.6 22,980.6 0.95 0.62 0.7857 Assets Total Assets 14,365.6 24,156.4 $ Debt to Total Liabilities 22,980.6 19.54 1.63 8,908.6 10.589 Total Equity $ Equity 1,175.8 5,457.0

Industry 2018 2017 Amounts Answer Amounts Answer Average Debt (Leverage) (Long-term Solvency) Ratios $ Debt to Total Liabilities 8,908.6 22,980.6 0.95 0.62 0.7857 Assets Total Assets 14,365.6 24,156.4 $ Debt to Total Liabilities 22,980.6 19.54 1.63 8,908.6 10.589 Total Equity $ Equity 1,175.8 5,457.0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Discuss what the leverage ratios reveal about Starbucks financial health, including any description of trend analysis, benchmarks, standard measurements or other types of analysis used once the ratio amount is known.

Industry
2018
2017
Amounts
Answer
Amounts
Answer
Average
Debt (Leverage) (Long-term Solvency) Ratios
$
Debt to
Total Liabilities
8,908.6
22,980.6
0.95
0.62
0.7857
Assets
Total Assets
14,365.6
24,156.4
$
Debt to
Total Liabilities
22,980.6
19.54
1.63
8,908.6
10.589
Total Equity
$
Equity
1,175.8
5,457.0

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