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Starbucks Corp (FRA:SRB)
Beneish M-Score
-2.85 (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 -2.72 suggests that the company is not a manipulator.

FRA:SRB' s 10-Year Beneish M-Score Range
Min: -10.87   Max: -1.57
Current: -2.85

-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 * 1.1101+0.528 * 0.9768+0.404 * 1.0135+0.892 * 1.13+0.115 * 1.0989
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9841+4.679 * -0.1035-0.327 * 0.9308
=-2.72

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was €539 Mil.
Revenue was 3895.53933496 + 3243.36695112 + 3056.43855776 + 2801.01229212 = €12,996 Mil.
Gross Profit was 2280.61638281 + 1906.59425912 + 1797.05665931 + 1622.99349241 = €7,607 Mil.
Total Current Assets was €3,687 Mil.
Total Assets was €10,017 Mil.
Property, Plant and Equipment(Net PPE) was €3,100 Mil.
Depreciation, Depletion and Amortization(DDA) was €599 Mil.
Selling, General & Admin. Expense(SGA) was €4,446 Mil.
Total Current Liabilities was €2,885 Mil.
Long-Term Debt was €1,661 Mil.
Net Income was 797.323600973 + 456.012412723 + 377.189109639 + 308.749096168 = €1,939 Mil.
Non Operating Income was 316.788321168 + 0 + 0 + 0 = €317 Mil.
Cash Flow from Operations was 1155.87996756 + 575.01939488 + 625.5334805 + 302.530730296 = €2,659 Mil.
Accounts Receivable was €430 Mil.
Revenue was 3090.08746356 + 2837.97752809 + 2831.91811979 + 2741.003861 = €11,501 Mil.
Gross Profit was 1781.70553936 + 1614.23220974 + 1620.6974981 + 1559.22779923 = €6,576 Mil.
Total Current Assets was €2,740 Mil.
Total Assets was €7,475 Mil.
Property, Plant and Equipment(Net PPE) was €2,356 Mil.
Depreciation, Depletion and Amortization(DDA) was €510 Mil.
Selling, General & Admin. Expense(SGA) was €3,998 Mil.
Total Current Liabilities was €2,152 Mil.
Long-Term Debt was €1,493 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)
=(539.253852393 / 12996.357136) / (429.883381924 / 11500.9869724)
=0.04149269 / 0.03737796
=1.1101

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)
=(1906.59425912 / 11500.9869724) / (2280.61638281 / 12996.357136)
=0.57176511 / 0.58533793
=0.9768

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 - (3687.02351987 + 3100) / 10017.1127332) / (1 - (2740.08746356 + 2356.41399417) / 7474.63556851)
=0.32245711 / 0.31816054
=1.0135

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
=12996.357136 / 11500.9869724
=1.13

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))
=(510.097929556 / (510.097929556 + 2356.41399417)) / (599.018305118 / (599.018305118 + 3100))
=0.17795074 / 0.16193981
=1.0989

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)
=(4446.12913715 / 12996.357136) / (3998.00264217 / 11500.9869724)
=0.3421058 / 0.34762257
=0.9841

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)
=((1661.31386861 + 2885.23925385) / 10017.1127332) / ((1492.63848397 + 2152.33236152) / 7474.63556851)
=0.4538786 / 0.48764529
=0.9308

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
=(1939.2742195 - 316.788321168 - 2658.96357324) / 10017.1127332
=-0.1035

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 -2.72 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 1.20311.17451.10521.06940.92661.21831.04111.21341.07931.1458
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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.10450.91421.03360.99221.01391.10290.99931.04531.07921.1101
GMI 1.03051.01110.99760.98720.98640.98850.98840.98580.97870.9768
AQI 1.00661.00541.3671.29951.49211.98181.47691.73741.1541.0135
SGI 1.21511.19451.17331.12251.10021.08991.06311.06431.07861.13
DEPI 1.05511.01671.05651.0311.03751.02090.98860.9931.01881.0989
SGAI 0.95610.97250.97590.99050.99040.97820.98060.97350.97350.9841
LVGI 0.94131.0021.05311.06191.72681.4081.42821.44710.8160.9308
TATA -0.0485-0.1099-0.1215-0.1181-0.2528-0.0376-0.0466-0.05250.1264-0.1035
M-score -2.37-2.89-2.72-2.83-3.60-2.22-2.59-2.48-1.63-2.72
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