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Starbucks Corp (FRA:SRB)
Beneish M-Score
-2.36 (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 -2.42 suggests that the company is not a manipulator.

FRA:SRB' s 10-Year Beneish M-Score Range
Min: -10.87   Max: -1.57
Current: -2.36

-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 -2.73.


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 * 1.0062+0.528 * 0.9801+0.404 * 1.4769+0.892 * 1.0647+0.115 * 0.7306
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9826+4.679 * -0.0048-0.327 * 1.4282
=-2.42

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was €427 Mil.
Revenue was 2805.06879073 + 3112.7753304 + 2782.25806452 + 2858.44155844 = €11,559 Mil.
Gross Profit was 723.533671253 + 1794.78707783 + 1584.53079179 + 1637.96791444 = €5,741 Mil.
Total Current Assets was €2,592 Mil.
Total Assets was €7,311 Mil.
Property, Plant and Equipment(Net PPE) was €2,374 Mil.
Depreciation, Depletion and Amortization(DDA) was €766 Mil.
Selling, General & Admin. Expense(SGA) was €3,187 Mil.
Total Current Liabilities was €1,979 Mil.
Long-Term Debt was €1,483 Mil.
Net Income was 309.196234613 + 396.989720999 + 352.712609971 + 319.174942704 = €1,378 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 302.968863143 + -1029.29515419 + 1631.4516129 + 508.250572956 = €1,413 Mil.
Accounts Receivable was €399 Mil.
Revenue was 2722.08588957 + 2852.03007519 + 2593.75481881 + 2688.03905614 = €10,856 Mil.
Gross Profit was 671.012269939 + 1633.45864662 + 1468.69699306 + 1511.3913751 = €5,285 Mil.
Total Current Assets was €2,922 Mil.
Total Assets was €6,521 Mil.
Property, Plant and Equipment(Net PPE) was €2,182 Mil.
Depreciation, Depletion and Amortization(DDA) was €473 Mil.
Selling, General & Admin. Expense(SGA) was €3,046 Mil.
Total Current Liabilities was €1,741 Mil.
Long-Term Debt was €421 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)
=(427.226647357 / 11558.5437441) / (398.773006135 / 10855.9098397)
=0.03696198 / 0.03673326
=1.0062

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)
=(1794.78707783 / 10855.9098397) / (723.533671253 / 11558.5437441)
=0.48679101 / 0.49667325
=0.9801

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 - (2591.60028965 + 2373.71469949) / 7311.3685735) / (1 - (2921.93251534 + 2181.97852761) / 6520.55214724)
=0.32087749 / 0.21725784
=1.4769

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
=11558.5437441 / 10855.9098397
=1.0647

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))
=(473.229505484 / (473.229505484 + 2181.97852761)) / (765.961376049 / (765.961376049 + 2373.71469949))
=0.1782269 / 0.24396191
=0.7306

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)
=(3187.06586494 / 11558.5437441) / (3046.48366654 / 10855.9098397)
=0.27573247 / 0.28062905
=0.9826

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)
=((1482.9833454 + 1979.36278059) / 7311.3685735) / ((421.472392638 + 1740.56748466) / 6520.55214724)
=0.4735565 / 0.33157313
=1.4282

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
=(1378.07350829 - 0 - 1413.37589482) / 7311.3685735
=-0.0048

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 -2.42 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

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
DSRI 0.94321.13080.96161.06211.03740.87371.01971.16851.1061.0318
GMI 2.72060.97971.03180.91360.42230.99120.9491.01321.03020.9851
AQI 0.92750.92021.04891.02641.20491.05541.05450.86581.00661.0895
SGI 1.2151.25311.16351.07351.18310.84291.16631.10631.20421.0648
DEPI 0.90891.02051.10811.0550.85670.93410.99380.96591.05641.0542
SGAI 0.13270.97551.08341.37034.8610.98060.98310.95190.95570.9886
LVGI 0.9861.58071.24991.15730.95380.7910.95450.97820.94131.1042
TATA -0.1574-0.1438-0.1493-0.1435-0.1663-0.179-0.1268-0.0656-0.0446-0.114
M-score -2.05-3.03-3.12-3.17-3.95-3.49-2.89-2.57-2.36-2.92

Starbucks Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.30571.18641.14731.07760.88471.03340.99531.01621.12981.0062
GMI 1.03561.04461.04661.03041.01111.16331.14681.14221.14010.9801
AQI 0.97331.00730.98251.00661.00541.3671.29951.08951.98181.4769
SGI 1.08231.13811.21391.2361.19351.1611.10411.08111.08651.0647
DEPI 1.00921.03161.04771.03420.98911.05611.03370.75270.76080.7306
SGAI 0.94760.94370.9390.95610.9730.77390.78840.78960.7820.9826
LVGI 0.9560.94420.91060.94131.0021.05311.06191.10421.4081.4282
TATA -0.0354-0.0382-0.0422-0.0493-0.1107-0.1217-0.1163-0.24410.0032-0.0048
M-score -2.26-2.31-2.29-2.38-2.92-2.61-2.72-3.45-1.92-2.42
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