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Starbucks Corp (FRA:SRB)
Beneish M-Score
-3.04 (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 -3.04 suggests that the company is not a manipulator.

FRA:SRB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.92   Max: -1.62
Current: -3.04

-3.92
-1.62

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.


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 * 0.9395+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
=-3.04

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

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

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)
=(685.02183017 / 19167.4574724) / (640.648667914 / 16840.526715)
=0.03573879 / 0.03804208
=0.9395

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)
=(9999.69705235 / 16840.526715) / (11513.0406936 / 19167.4574724)
=0.59378767 / 0.6006556
=0.9886

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 - (4241.73572129 + 4039.73982001) / 12767.9764769) / (1 - (3538.26962488 + 3642.78713357) / 11063.2629422)
=0.351387 / 0.35090969
=1.0014

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
=19167.4574724 / 16840.526715
=1.1382

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))
=0.1841517 / 0.1864908
=0.9875

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)
=0.3482617 / 0.34513865
=1.009

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)
=0.54077951 / 0.48288137
=1.1199

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
=(2532.43437914 - 0 - 4123.41076188) / 12767.9764769
=-0.1246

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.


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 local exchange's currency.

Starbucks Corp Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
DSRI 1.06211.03740.87371.01971.16851.10791.03181.01590.9780.9613
GMI 0.91360.42230.99120.9491.01321.03160.9850.97890.98210.9882
AQI 1.02641.20491.05541.05450.86581.00661.49211.1541.2311.0014
SGI 1.10561.06950.92661.21841.04121.21121.08081.14621.33781.1124
DEPI 1.0550.85670.93410.99380.96591.05641.05420.96940.94321.0043
SGAI 1.37034.8610.98060.98310.95190.95740.98860.9741.00751.0102
LVGI 1.15730.95380.7910.95450.97820.94131.72680.8161.02071.1199
TATA -0.1232-0.1663-0.179-0.1268-0.0498-0.0446-0.25180.1358-0.1064-0.1226
M-score -3.05-4.05-3.42-2.85-2.56-2.35-3.60-1.59-2.63-3.04

Starbucks Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.04391.07921.10971.1391.05210.94730.94610.87570.94410.9395
GMI 0.98460.97870.97680.97580.97730.9820.98310.98650.98890.9886
AQI 1.73741.1541.01351.03470.91211.2310.98071.05591.04011.0014
SGI 1.06621.0791.13021.24681.33251.38121.37551.25891.17531.1382
DEPI 0.99321.01881.09851.13521.0070.91720.86340.82940.93060.9875
SGAI 0.97190.97350.98410.99130.99541.00891.00821.00491.01381.009
LVGI 1.44710.8160.93080.96481.04671.02071.0841.18861.08311.1199
TATA -0.05240.1264-0.1035-0.0992-0.0876-0.1006-0.1101-0.1077-0.1111-0.1246
M-score -2.48-1.63-2.72-2.57-2.61-2.59-2.77-2.93-2.92-3.04
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