Assignment: SBUX
Find the financial leverage ratios for SBUX for the last 3-5 years in the Internet. Present these ratios as the table(s) in your project.
Debt-to-assets ratio (Debt ratio)
Debt-to Equity ratio
Interest Coverage ratio (the Times Interest Earned)
Write (about) 1 page of the analysis of the ratio results. In your analysis you should answer the following questions. Please explain your answer to each question.
How is THE COMPANY financing its assets? Discuss how much risk is associated with the bonds issued by the company? How can this risk be measured?Please explain.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also include a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also Include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
What is financial leverage?
What is operational leverage?
What are the main differences between the two types of leverage?
What are the calculations for leverage, what values are included and what does it show us about the business?