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Starbucks Corp (FRA:SRB)
Beneish M-Score
-1.62 (As of Today)

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.

Starbucks Corp has a M-score of -1.59 signals that the company is a manipulator.

FRA:SRB' s 10-Year Beneish M-Score Range
Min: -3.99   Max: -1.62
Current: -1.62

-3.99
-1.62

During the past 13 years, the highest Beneish M-Score of Starbucks Corp was -1.62. The lowest was -3.99. And the median was -2.97.


Definition

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 * 1.1035+0.528 * 0.9787+0.404 * 1.154+0.892 * 1.0966+0.115 * 1.0376
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9732+4.679 * 0.1251-0.327 * 0.816
=-1.59

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was €498 Mil.
Revenue was 3299.68429361 + 3069.99260902 + 2805.06879073 + 3112.7753304 = €12,288 Mil.
Gross Profit was 1939.70007893 + 1805.02586844 + 1625.34395366 + 1794.78707783 = €7,165 Mil.
Total Current Assets was €3,290 Mil.
Total Assets was €8,487 Mil.
Property, Plant and Equipment(Net PPE) was €2,777 Mil.
Depreciation, Depletion and Amortization(DDA) was €559 Mil.
Selling, General & Admin. Expense(SGA) was €4,203 Mil.
Total Current Liabilities was €2,398 Mil.
Long-Term Debt was €1,617 Mil.
Net Income was 463.930544594 + 378.861788618 + 309.196234613 + 396.989720999 = €1,549 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 585.00394633 + 628.307464893 + 302.968863143 + -1029.29515419 = €487 Mil.
Accounts Receivable was €412 Mil.
Revenue was 2777.63929619 + 2853.55233002 + 2722.08588957 + 2852.03007519 = €11,205 Mil.
Gross Profit was 1579.91202346 + 1633.07868602 + 1548.46625767 + 1633.45864662 = €6,395 Mil.
Total Current Assets was €4,011 Mil.
Total Assets was €8,443 Mil.
Property, Plant and Equipment(Net PPE) was €2,346 Mil.
Depreciation, Depletion and Amortization(DDA) was €494 Mil.
Selling, General & Admin. Expense(SGA) was €3,938 Mil.
Total Current Liabilities was €3,942 Mil.
Long-Term Debt was €953 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(498.026835043 / 12287.5210238) / (411.583577713 / 11205.307591)
=0.04053111 / 0.03673113
=1.1035

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.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(1805.02586844 / 11205.307591) / (1939.70007893 / 12287.5210238)
=0.57070416 / 0.58310028
=0.9787

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (3290.21310182 + 2777.4269929) / 8486.89818469) / (1 - (4011.29032258 + 2346.40762463) / 8443.32844575)
=0.28505798 / 0.2470152
=1.154

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.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=12287.5210238 / 11205.307591
=1.0966

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))
=(493.990696068 / (493.990696068 + 2346.40762463)) / (559.255372361 / (559.255372361 + 2777.4269929))
=0.17391599 / 0.16760821
=1.0376

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)
=(4202.99683581 / 12287.5210238) / (3938.48514104 / 11205.307591)
=0.34205409 / 0.35148389
=0.9732

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)
=((1616.65351223 + 2398.34254144) / 8486.89818469) / ((952.639296188 + 3942.30205279) / 8443.32844575)
=0.47308168 / 0.57974072
=0.816

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(1548.97828882 - 0 - 486.98512018) / 8486.89818469
=0.1251

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 -1.59 signals that the company is likely to be a manipulator.


Related Terms

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


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Starbucks Corp Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
DSRI 1.13080.96161.06211.03740.87371.01971.16851.1061.03361.0159
GMI 0.97971.03180.91360.42230.99120.9491.01321.03020.98630.9789
AQI 0.92021.04891.02641.20491.05541.05450.86581.00661.49211.154
SGI 1.25311.16351.07351.18310.84291.16631.10631.20421.06291.191
DEPI 1.02051.10811.0550.85670.93410.99380.96591.05641.05420.9694
SGAI 0.97551.08341.37034.8610.98060.98310.95190.95570.99020.974
LVGI 1.58071.24991.15730.95380.7910.95450.97820.94131.72680.816
TATA -0.1438-0.1493-0.1435-0.1663-0.179-0.1268-0.0656-0.0446-0.25180.1358
M-score -3.03-3.12-3.17-3.95-3.49-2.89-2.57-2.36-3.61-1.55

Starbucks Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.14731.07760.88471.03340.99571.01711.13081.00711.03881.1035
GMI 1.04661.03041.01110.99770.98720.98630.98840.98830.98570.9787
AQI 0.98251.00661.00541.3671.29951.49211.98181.47691.73741.154
SGI 1.21391.2361.19351.1611.10361.08021.08561.06381.06751.0966
DEPI 1.04771.03420.98911.05611.03371.03991.04240.9950.98811.0376
SGAI 0.9390.95610.9730.97620.99070.99060.97810.98060.97340.9732
LVGI 0.91060.94131.0021.05311.06191.72681.4081.42821.44710.816
TATA -0.0422-0.0493-0.1107-0.1217-0.1163-0.2538-0.0317-0.0408-0.04670.1251
M-score -2.29-2.38-2.92-2.73-2.84-3.62-2.17-2.56-2.46-1.59
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