Debt-to-Equity Ratio

The Debt-to-Equity (D/E) ratio shows how much debt a company uses compared to its shareholders' equity.

A negative reading of -1.78x means SBUX has negative equity — its total liabilities exceed its total assets, which is an unusual and risky financial position. The sector median is 0.73x, and SBUX ranks at the 6th percentile among peers, meaning nearly all competitors have a healthier, positive D/E. No trend data is available: the year-over-year and quarter-over-quarter changes are both listed as N/A, so it is impossible to assess whether the ratio is improving or worsening. The combination of a severely negative D/E with no trend history points to elevated financial risk for investors. This metric directly supports the overall CAUTIOUS verdict, as negative equity is a clear warning sign of potential insolvency or heavy financial distress.

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