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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 -2.93 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 -2.82.


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 * 0.8757+0.528 * 0.9865+0.404 * 1.0559+0.892 * 1.2589+0.115 * 0.8294
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0049+4.679 * -0.1077-0.327 * 1.1886
=-2.93

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was €668 Mil.
Revenue was 4483.8362069 + 4932.98448545 + 4379.22124209 + 4349.28272298 = €18,145 Mil.
Gross Profit was 2678.60991379 + 2926.00752777 + 2612.67040898 + 2608.30437494 = €10,826 Mil.
Total Current Assets was €3,487 Mil.
Total Assets was €11,242 Mil.
Property, Plant and Equipment(Net PPE) was €3,814 Mil.
Depreciation, Depletion and Amortization(DDA) was €899 Mil.
Selling, General & Admin. Expense(SGA) was €6,274 Mil.
Total Current Liabilities was €3,907 Mil.
Long-Term Debt was €2,198 Mil.
Net Income was 516.433189655 + 631.231065822 + 581.395348837 + 558.40684309 = €2,287 Mil.
Non Operating Income was 0 + 0 + -54.4417713624 + 0 = €-54 Mil.
Cash Flow from Operations was 493.444683908 + 1501.88194253 + 864.207431168 + 693.486590038 = €3,553 Mil.
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.



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)
=(667.834051724 / 18145.3246574) / (605.747020235 / 14413.2581505)
=0.03680475 / 0.04202707
=0.8757

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)
=(2926.00752777 / 14413.2581505) / (2678.60991379 / 18145.3246574)
=0.58857017 / 0.59660504
=0.9865

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 - (3487.33836207 + 3813.66738506) / 11242.2772989) / (1 - (3922.57229973 + 3601.3120207) / 11263.6976809)
=0.35057591 / 0.33202359
=1.0559

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
=18145.3246574 / 14413.2581505
=1.2589

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))
=(676.537919461 / (676.537919461 + 3601.3120207)) / (898.546512088 / (898.546512088 + 3813.66738506))
=0.15814905 / 0.19068458
=0.8294

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)
=(6273.65513806 / 18145.3246574) / (4958.8413584 / 14413.2581505)
=0.34574499 / 0.34404722
=1.0049

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)
=((2197.91666667 + 3907.32758621) / 11242.2772989) / ((1892.72844867 + 3253.44174443) / 11263.6976809)
=0.54306117 / 0.45688107
=1.1886

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
=(2287.4664474 - -54.4417713624 - 3553.02064765) / 11242.2772989
=-0.1077

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 -2.93 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 0.96161.06211.03740.87371.01971.16851.1061.03181.01770.978
GMI 1.03180.91361.21610.34420.95531.01141.02510.98510.98020.9821
AQI 1.04891.02641.20491.05541.05450.86581.00661.49211.1541.1289
SGI 1.17471.10561.06950.92661.21841.04121.21321.08081.14421.3378
DEPI 1.08341.0550.85670.93410.99380.96591.05641.05420.96940.9432
SGAI 1.08341.37030.90965.24040.970.95520.96530.98860.97571.0075
LVGI 1.24991.15730.95380.7910.95450.97820.94131.72680.8161.0192
TATA -0.1281-0.1232-0.1663-0.179-0.1189-0.0498-0.0561-0.25180.1358-0.1062
M-score -3.01-3.05-2.95-4.49-2.81-2.56-2.41-3.60-1.59-2.67

Starbucks Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.10270.99961.04651.0811.11111.13991.05250.94730.94610.8757
GMI 0.98790.98850.98650.980.97770.97640.97760.9820.98310.9865
AQI 1.98181.47691.73741.1541.01351.03470.91211.12890.98071.0559
SGI 1.09061.0631.06351.07721.12881.24571.3321.38121.37551.2589
DEPI 1.02140.98870.99321.01881.09851.13521.0070.91720.86340.8294
SGAI 0.97740.98060.97440.97510.98540.99210.99581.00891.00821.0049
LVGI 1.4081.42821.44710.8160.93080.96481.04671.01921.0841.1886
TATA -0.0375-0.0466-0.05240.1264-0.1035-0.0992-0.0876-0.1004-0.1101-0.1077
M-score -2.22-2.59-2.48-1.63-2.72-2.57-2.61-2.63-2.77-2.93
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