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Starbucks Corp (FRA:SRB)
Beneish M-Score
-2.43 (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 -2.46 suggests that the company is not a manipulator.

FRA:SRB' s 10-Year Beneish M-Score Range
Min: -10.87   Max: -1.57
Current: -2.43

-10.87
-1.57

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 -2.76.


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 * 1.0372+0.528 * 0.9846+0.404 * 1.7374+0.892 * 1.0692+0.115 * 0.9881
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9719+4.679 * -0.0467-0.327 * 1.4471
=-2.46

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was €429 Mil.
Revenue was 3069.99260902 + 2805.06879073 + 3112.7753304 + 2796.26099707 = €11,784 Mil.
Gross Profit was 1805.02586844 + 1625.34395366 + 1794.78707783 + 1598.53372434 = €6,824 Mil.
Total Current Assets was €2,481 Mil.
Total Assets was €7,676 Mil.
Property, Plant and Equipment(Net PPE) was €2,493 Mil.
Depreciation, Depletion and Amortization(DDA) was €535 Mil.
Selling, General & Admin. Expense(SGA) was €4,058 Mil.
Total Current Liabilities was €2,131 Mil.
Long-Term Debt was €1,514 Mil.
Net Income was 378.861788618 + 309.196234613 + 396.989720999 + -903.225806452 = €182 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 628.307464893 + 302.968863143 + -1029.29515419 + 638.196480938 = €540 Mil.
Accounts Receivable was €387 Mil.
Revenue was 2853.55233002 + 2722.08588957 + 2852.03007519 + 2593.75481881 = €11,021 Mil.
Gross Profit was 1633.07868602 + 1548.46625767 + 1633.45864662 + 1468.69699306 = €6,284 Mil.
Total Current Assets was €3,239 Mil.
Total Assets was €6,923 Mil.
Property, Plant and Equipment(Net PPE) was €2,282 Mil.
Depreciation, Depletion and Amortization(DDA) was €483 Mil.
Selling, General & Admin. Expense(SGA) was €3,906 Mil.
Total Current Liabilities was €1,852 Mil.
Long-Term Debt was €420 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)
=(429.342202513 / 11784.0977272) / (387.165775401 / 11021.4231136)
=0.03643403 / 0.03512847
=1.0372

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)
=(1625.34395366 / 11021.4231136) / (1805.02586844 / 11784.0977272)
=0.57013514 / 0.57905924
=0.9846

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 - (2481.07908352 + 2493.49593496) / 7675.75757576) / (1 - (3238.88464477 + 2281.97097021) / 6923.14744079)
=0.35191087 / 0.2025512
=1.7374

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
=11784.0977272 / 11021.4231136
=1.0692

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))
=(482.625929192 / (482.625929192 + 2281.97097021)) / (535.07426475 / (535.07426475 + 2493.49593496))
=0.17457371 / 0.17667554
=0.9881

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)
=(4058.43819983 / 11784.0977272) / (3905.61021198 / 11021.4231136)
=0.34439957 / 0.35436533
=0.9719

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)
=((1513.74722838 + 2131.48558758) / 7675.75757576) / ((419.938884645 + 1852.10084034) / 6923.14744079)
=0.47490202 / 0.32818017
=1.4471

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
=(181.821937777 - 0 - 540.177654789) / 7675.75757576
=-0.0467

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 -2.46 suggests that the company will not 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

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
DSRI 0.94321.13080.96161.06211.03740.87371.01971.16851.1061.0318
GMI 2.72060.97971.03180.91360.42230.99120.9491.01321.03020.9851
AQI 0.92750.92021.04891.02641.20491.05541.05450.86581.00661.4921
SGI 1.2151.25311.16351.07351.18310.84291.16631.10631.20421.0648
DEPI 0.90891.02051.10811.0550.85670.93410.99380.96591.05641.0542
SGAI 0.13270.97551.08341.37034.8610.98060.98310.95190.95570.9886
LVGI 0.9861.58071.24991.15730.95380.7910.95450.97820.94131.7268
TATA -0.1574-0.1438-0.1493-0.1435-0.1663-0.179-0.1268-0.0656-0.0446-0.2518
M-score -2.05-3.03-3.12-3.17-3.95-3.49-2.89-2.57-2.36-3.61

Starbucks Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.18641.14731.07760.88471.03340.99571.01541.12891.00541.0372
GMI 1.04461.04661.03041.01110.99770.98720.98510.98720.98710.9846
AQI 1.00730.98251.00661.00541.3671.29951.49211.98181.47691.7374
SGI 1.13811.21391.2361.19351.1611.10361.0821.08731.06561.0692
DEPI 1.03161.04771.03420.98911.05611.03371.03991.04240.9950.9881
SGAI 0.94370.9390.95610.9730.97620.99070.9890.97650.9790.9719
LVGI 0.94420.91060.94131.0021.05311.06191.72681.4081.42821.4471
TATA -0.0382-0.0422-0.0493-0.1107-0.1217-0.1163-0.2538-0.0317-0.0408-0.0467
M-score -2.31-2.29-2.38-2.92-2.73-2.84-3.62-2.17-2.56-2.46
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