FRA:SRB has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
The zones of discrimination for M-Score is as such:
An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.
During the past 13 years, the highest Beneish M-Score of Starbucks Corp was -1.57. The lowest was -10.87. And the median was -2.80.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.
The M-Score Variables:
The M-score of Starbucks Corp for today is based on a combination of the following eight different indices:
|M||=||-4.84||+||0.92 * DSRI||+||0.528 * GMI||+||0.404 * AQI||+||0.892 * SGI||+||0.115 * DEPI|
|=||-4.84||+||0.92 * 0.9403||+||0.528 * 0.9823||+||0.404 * 0.9807||+||0.892 * 1.384||+||0.115 * 0.8634|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0015||+||4.679 * -0.1637||-||0.327 * 1.084|
|This Year (Dec15) TTM:||Last Year (Dec14) TTM:|
|Accounts Receivable was €702 Mil.|
Revenue was 4932.98448545 + 0 + 4349.28272298 + 4216.48341495 = €13,499 Mil.
Gross Profit was 2926.00752777 + 0 + 2608.30437494 + 2498.10588561 = €8,032 Mil.
Total Current Assets was €4,340 Mil.
Total Assets was €11,882 Mil.
Property, Plant and Equipment(Net PPE) was €3,785 Mil.
Depreciation, Depletion and Amortization(DDA) was €874 Mil.
Selling, General & Admin. Expense(SGA) was €4,667 Mil.
Total Current Liabilities was €4,058 Mil.
Long-Term Debt was €1,788 Mil.
Net Income was 631.231065822 + 0 + 558.40684309 + 457.266931535 = €1,647 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 1501.88194253 + 864.207431168 + 693.486590038 + 531.922757091 = €3,591 Mil.
|Accounts Receivable was €539 Mil.
Revenue was 3895.53933496 + 0 + 3057.11341724 + 2800.80977514 = €9,753 Mil.
Gross Profit was 2280.61638281 + 0 + 1797.45344815 + 1622.87614778 = €5,701 Mil.
Total Current Assets was €3,687 Mil.
Total Assets was €10,017 Mil.
Property, Plant and Equipment(Net PPE) was €3,100 Mil.
Depreciation, Depletion and Amortization(DDA) was €599 Mil.
Selling, General & Admin. Expense(SGA) was €3,367 Mil.
Total Current Liabilities was €2,885 Mil.
Long-Term Debt was €1,661 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(701.735059212 / 13498.7506234)||/||(539.253852393 / 9753.46252734)|
2. GMI = Gross Margin Index
Measured as the ratio of gross margin in year t-1 to gross margin in year t.
Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(0 / 9753.46252734)||/||(2926.00752777 / 13498.7506234)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (4340.12668686 + 3784.54053062) / 11882.4015423)||/||(1 - (3687.02351987 + 3100) / 10017.1127332)|
4. SGI = Sales Growth Index
Ratio of sales in year t to sales in year t-1.
Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.
5. DEPI = Depreciation Index
Measured as the ratio of the rate of depreciation in year t-1 to the corresponding rate in year t.
DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.
|DEPI||=||(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))||/||(Depreciation_t / (Depreciaton_t + PPE_t))|
|=||(599.074626325 / (599.074626325 + 3100))||/||(873.843605815 / (873.843605815 + 3784.54053062))|
6. SGAI = Sales, General and Administrative expenses Index
The ratio of SGA expenses in year t relative to year t-1.
SGA expenses index > 1 means that the company is becoming less efficient in generate sales.
|SGAI||=||(SGA_t / Sales_t)||/||(SGA_t-1 /Sales_t-1)|
|=||(4667.41997364 / 13498.7506234)||/||(3367.31621655 / 9753.46252734)|
7. LVGI = Leverage Index
The ratio of total debt to total assets in year t relative to yeat t-1.
An LVGI > 1 indicates an increase$sgai= in leverage
|LVGI||=||((LTD_t + CurrentLiabilities_t) / TotalAssets_t)||/||((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)|
|=||((1788.21261361 + 4057.743505) / 11882.4015423)||/||((1661.31386861 + 2885.23925385) / 10017.1127332)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(1646.90484045 - 0||-||3591.49872083)||/||11882.4015423|
An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.
Starbucks Corp has a M-score of -3.02 suggests that the company will not be a manipulator.
Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations
Starbucks Corp Annual Data
Starbucks Corp Quarterly Data