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 -1.62. The lowest was -3.92. And the median was -2.85.
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 * 0.9395||+||0.528 * 0.9886||+||0.404 * 1.0014||+||0.892 * 1.1382||+||0.115 * 0.9875|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.009||+||4.679 * -0.1246||-||0.327 * 1.1199|
|This Year (Sep16) TTM:||Last Year (Sep15) TTM:|
|Accounts Receivable was €685 Mil.|
Revenue was 5088.83542725 + 4661.80135279 + 4483.8362069 + 4932.98448545 = €19,167 Mil.
Gross Profit was 3080.28156464 + 2828.14168743 + 2678.60991379 + 2926.00752777 = €11,513 Mil.
Total Current Assets was €4,242 Mil.
Total Assets was €12,768 Mil.
Property, Plant and Equipment(Net PPE) was €4,040 Mil.
Depreciation, Depletion and Amortization(DDA) was €926 Mil.
Selling, General & Admin. Expense(SGA) was €6,675 Mil.
Total Current Liabilities was €4,051 Mil.
Long-Term Debt was €2,853 Mil.
Net Income was 713.623808251 + 671.146315415 + 516.433189655 + 631.231065822 = €2,532 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 1165.64198521 + 962.442150231 + 493.444683908 + 1501.88194253 = €4,123 Mil.
|Accounts Receivable was €641 Mil.
Revenue was 4379.22124209 + 4349.28272298 + 4216.48341495 + 3895.53933496 = €16,841 Mil.
Gross Profit was 2612.67040898 + 2608.30437494 + 2498.10588561 + 2280.61638281 = €10,000 Mil.
Total Current Assets was €3,538 Mil.
Total Assets was €11,063 Mil.
Property, Plant and Equipment(Net PPE) was €3,643 Mil.
Depreciation, Depletion and Amortization(DDA) was €822 Mil.
Selling, General & Admin. Expense(SGA) was €5,812 Mil.
Total Current Liabilities was €3,251 Mil.
Long-Term Debt was €2,092 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)|
|=||(685.02183017 / 19167.4574724)||/||(640.648667914 / 16840.526715)|
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)|
|=||(9999.69705235 / 16840.526715)||/||(11513.0406936 / 19167.4574724)|
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 - (4241.73572129 + 4039.73982001) / 12767.9764769)||/||(1 - (3538.26962488 + 3642.78713357) / 11063.2629422)|
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))|
|=||(822.242865769 / (822.242865769 + 3642.78713357))||/||(926.079661779 / (926.079661779 + 4039.73982001))|
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)|
|=||(6675.2913485 / 19167.4574724)||/||(5812.31663992 / 16840.526715)|
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)|
|=||((2853.24779471 + 4051.41227836) / 12767.9764769)||/||((2091.68671478 + 3250.5568921) / 11063.2629422)|
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|
|=||(2532.43437914 - 0||-||4123.41076188)||/||12767.9764769|
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 -3.04 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