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Starbucks Corp (FRA:SRB)
Beneish M-Score
-2.90 (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 -2.57 suggests that the company is not a manipulator.

FRA:SRB' s 10-Year Beneish M-Score Range
Min: -10.87   Max: -1.57
Current: -2.9

-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 -2.77.


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 * 1.139+0.528 * 0.9758+0.404 * 1.0347+0.892 * 1.2468+0.115 * 1.1352
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9913+4.679 * -0.0992-0.327 * 0.9648
=-2.57

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was €606 Mil.
Revenue was 4216.48341495 + 3895.53933496 + 3244.12198339 + 3057.11341724 = €14,413 Mil.
Gross Profit was 2498.10588561 + 2280.61638281 + 1907.03810041 + 1797.45344815 = €8,483 Mil.
Total Current Assets was €3,923 Mil.
Total Assets was €11,264 Mil.
Property, Plant and Equipment(Net PPE) was €3,601 Mil.
Depreciation, Depletion and Amortization(DDA) was €677 Mil.
Selling, General & Admin. Expense(SGA) was €4,959 Mil.
Total Current Liabilities was €3,253 Mil.
Long-Term Debt was €1,893 Mil.
Net Income was 457.266931535 + 797.323600973 + 456.118569101 + 377.272392728 = €2,088 Mil.
Non Operating Income was 0 + 316.788321168 + 0 + 0 = €317 Mil.
Cash Flow from Operations was 531.922757091 + 1155.87996756 + 575.153255218 + 625.671597851 = €2,889 Mil.
Accounts Receivable was €427 Mil.
Revenue was 2800.80977514 + 3090.76328643 + 2837.76496143 + 2831.27416054 = €11,561 Mil.
Gross Profit was 1622.87614778 + 1782.09521032 + 1614.11130252 + 1620.32896233 = €6,639 Mil.
Total Current Assets was €2,588 Mil.
Total Assets was €7,300 Mil.
Property, Plant and Equipment(Net PPE) was €2,370 Mil.
Depreciation, Depletion and Amortization(DDA) was €519 Mil.
Selling, General & Admin. Expense(SGA) was €4,012 Mil.
Total Current Liabilities was €1,976 Mil.
Long-Term Debt was €1,481 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)
=(605.747020235 / 14413.2581505) / (426.577977008 / 11560.6121835)
=0.04202707 / 0.03689926
=1.139

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)
=(2280.61638281 / 11560.6121835) / (2498.10588561 / 14413.2581505)
=0.57431315 / 0.58857017
=0.9758

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 - (3922.57229973 + 3601.3120207) / 11263.6976809) / (1 - (2587.66538934 + 2370.11062107) / 7300.267515)
=0.33202359 / 0.32087749
=1.0347

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
=14413.2581505 / 11560.6121835
=1.2468

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))
=(518.639761349 / (518.639761349 + 2370.11062107)) / (676.537919461 / (676.537919461 + 3601.3120207))
=0.17953776 / 0.15814905
=1.1352

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)
=(4958.8413584 / 14413.2581505) / (4012.45053569 / 11560.6121835)
=0.34404722 / 0.34707942
=0.9913

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)
=((1892.72844867 + 3253.44174443) / 11263.6976809) / ((1480.73168968 + 1976.35745788) / 7300.267515)
=0.45688107 / 0.4735565
=0.9648

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
=(2087.98149434 - 316.788321168 - 2888.62757772) / 11263.6976809
=-0.0992

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 -2.57 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

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 1.20311.17471.10561.06950.92661.21841.04121.21321.0791.1462
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 -3.08-3.11-3.14-4.05-3.42-2.85-2.63-2.35-3.59-1.59

Starbucks Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.9141.03350.9921.0141.10360.99951.04561.07921.10971.139
GMI 1.01110.99760.98720.98640.98850.98840.98580.97870.97680.9758
AQI 1.00541.3671.29951.49211.98181.47691.73741.1541.01351.0347
SGI 1.19431.17311.12211.09991.08971.06311.06451.0791.13021.2468
DEPI 1.01661.05641.03091.03751.02140.98870.99321.01881.09851.1352
SGAI 0.97250.97590.99050.99040.97820.98060.97350.97350.98410.9913
LVGI 1.0021.05311.06191.72681.4081.42821.44710.8160.93080.9648
TATA -0.11-0.1215-0.1181-0.2528-0.0375-0.0466-0.05240.1264-0.1035-0.0992
M-score -2.89-2.72-2.83-3.60-2.22-2.59-2.48-1.63-2.72-2.57
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