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Analysis Of Starbucks And Dunkin ' Donuts

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This paper is a continuation and is part of a multiple-paper financial ratio analysis of Starbucks, McDonalds and Dunkin’ Donuts. For this paper, I will be discussing the long term debt to total assets and interest coverage ratio comparisons, disclosures of market risks, leases and interest expenses and interest payables.
Table 1. Long Term Debt to Total Assets and Interest Coverage Ratio Comparison Starbucks McDonalds Dunkin ' Donuts
Non-current Liabilities $6,045,300.00 $31,576,200.00 $2,772,930.00
Total Assets $11,516,700.00 $36,626,300.00 $3,234,690.00
Interest expense $28,100.00 $0.00 $80,235.00
EBIT ($201,800.00) $8,204,500.00 $298,323.00
Net Operating expense $8,809,900.00 $2,138,400.00 $277,729.00 Long-term debt-to-assets ratio 52% 86% 86%
Interest coverage ratio -7.18 0% 3.72 Retrieved from Nasdaq website (all rights received @ 2015)
Long Term Debt to Total Assets Ratio
Long term debt to total asset ratio represents the percentage of a company 's assets that are financed with loans and financial obligations for more than one year. This ratio indicates if the company is able to financial requirements for outstanding loans. It is calculated as long-term debt divided by total assets. As shown on the Table 1 above, Starbucks is doing better than McDonalds and Dunkin’ Donuts. Starbucks have a 52% ratio which means that for every $1 of asset that it owns, $0.52 is for long term debts. McDonalds and Dunkin’ Donuts both have 86% ratios, which mean

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