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Starbucks Corp (FRA:SRB)
Beneish M-Score
-2.91 (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 -2.92 suggests that the company is not a manipulator.

FRA:SRB' s Beneish M-Score Range Over the Past 10 Years
Min: -10.99   Max: -1.57
Current: -2.91

-10.99
-1.57

During the past 13 years, the highest Beneish M-Score of Starbucks Corp was -1.57. The lowest was -10.99. And the median was -2.77.


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 * 0.9441+0.528 * 0.9889+0.404 * 1.0401+0.892 * 1.1753+0.115 * 0.9306
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0138+4.679 * -0.1111-0.327 * 1.0831
=-2.92

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was €665 Mil.
Revenue was 4661.80135279 + 4483.8362069 + 4932.98448545 + 4379.22124209 = €18,458 Mil.
Gross Profit was 2828.14168743 + 2678.60991379 + 2926.00752777 + 2612.67040898 = €11,045 Mil.
Total Current Assets was €4,322 Mil.
Total Assets was €12,311 Mil.
Property, Plant and Equipment(Net PPE) was €3,880 Mil.
Depreciation, Depletion and Amortization(DDA) was €907 Mil.
Selling, General & Admin. Expense(SGA) was €6,425 Mil.
Total Current Liabilities was €3,778 Mil.
Long-Term Debt was €2,850 Mil.
Net Income was 671.146315415 + 516.433189655 + 631.231065822 + 581.395348837 = €2,400 Mil.
Non Operating Income was 0 + 0 + 0 + -54.4417713624 = €-54 Mil.
Cash Flow from Operations was 962.442150231 + 493.444683908 + 1501.88194253 + 864.207431168 = €3,822 Mil.
Accounts Receivable was €599 Mil.
Revenue was 4349.28272298 + 4216.48341495 + 3895.53933496 + 3244.12198339 = €15,705 Mil.
Gross Profit was 2608.30437494 + 2498.10588561 + 2280.61638281 + 1907.03810041 = €9,294 Mil.
Total Current Assets was €4,242 Mil.
Total Assets was €11,466 Mil.
Property, Plant and Equipment(Net PPE) was €3,544 Mil.
Depreciation, Depletion and Amortization(DDA) was €759 Mil.
Selling, General & Admin. Expense(SGA) was €5,392 Mil.
Total Current Liabilities was €3,608 Mil.
Long-Term Debt was €2,092 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)
=(665.094339623 / 18457.8432872) / (599.394101399 / 15705.4274563)
=0.03603316 / 0.03816477
=0.9441

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)
=(9294.06474378 / 15705.4274563) / (11045.429538 / 18457.8432872)
=0.59177407 / 0.59841388
=0.9889

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 - (4322.000712 + 3879.67248131) / 12311.498754) / (1 - (4241.91392676 + 3544.23950815) / 11466.4528201)
=0.33382009 / 0.32096233
=1.0401

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
=18457.8432872 / 15705.4274563
=1.1753

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))
=(758.800480492 / (758.800480492 + 3544.23950815)) / (907.011676392 / (907.011676392 + 3879.67248131))
=0.17634056 / 0.18948643
=0.9306

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)
=(6424.91266188 / 18457.8432872) / (5392.39024402 / 15705.4274563)
=0.34808577 / 0.34334565
=1.0138

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)
=((2850.1245995 + 3778.21288715) / 12311.498754) / ((2091.59761205 + 3607.947964) / 11466.4528201)
=0.53838591 / 0.49706266
=1.0831

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
=(2400.20591973 - -54.4417713624 - 3821.97620784) / 12311.498754
=-0.1111

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 -2.92 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

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
DSRI 0.96161.06211.03740.87371.01971.16851.10791.03181.01590.978
GMI 1.03180.91360.42230.99120.9491.01321.03160.9850.97890.9821
AQI 1.04891.02641.20491.05541.05450.86581.00661.49211.1541.1289
SGI 1.17471.10561.06950.92661.21841.04121.21121.08081.14621.3378
DEPI 1.10811.0550.85670.93410.99380.96591.05641.05420.96940.9432
SGAI 1.08341.37034.8610.98060.98310.95190.95740.98860.9741.0075
LVGI 1.24991.15730.95380.7910.95450.97820.94131.72680.8161.0192
TATA -0.1281-0.1232-0.1663-0.179-0.1268-0.0498-0.0446-0.25180.1358-0.1062
M-score -3.01-3.05-4.05-3.42-2.85-2.56-2.35-3.60-1.59-2.67

Starbucks Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.99791.04391.07921.10971.1391.05210.94730.94610.87570.9441
GMI 0.98720.98460.97870.97680.97580.97730.9820.98310.98650.9889
AQI 1.47691.73741.1541.01351.03470.91211.12890.98071.05591.0401
SGI 1.06481.06621.0791.13021.24681.33251.38121.37551.25891.1753
DEPI 0.98870.99321.01881.09851.13521.0070.91720.86340.82940.9306
SGAI 0.9790.97190.97350.98410.99130.99541.00891.00821.00491.0138
LVGI 1.42821.44710.8160.93080.96481.04671.01921.0841.18861.0831
TATA -0.0466-0.05240.1264-0.1035-0.0992-0.0876-0.1004-0.1101-0.1077-0.1111
M-score -2.59-2.48-1.63-2.72-2.57-2.61-2.63-2.77-2.93-2.92
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