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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 -2.61 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 -2.77.


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 * 1.0521+0.528 * 0.9773+0.404 * 0.9121+0.892 * 1.3325+0.115 * 1.007
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9954+4.679 * -0.0876-0.327 * 1.0467
=-2.61

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was €599 Mil.
Revenue was 4349.28272298 + 4216.48341495 + 3895.53933496 + 3244.12198339 = €15,705 Mil.
Gross Profit was 2608.30437494 + 2498.10588561 + 2280.61638281 + 1907.03810041 = €9,294 Mil.
Total Current Assets was €4,242 Mil.
Total Assets was €11,466 Mil.
Property, Plant and Equipment(Net PPE) was €3,544 Mil.
Depreciation, Depletion and Amortization(DDA) was €759 Mil.
Selling, General & Admin. Expense(SGA) was €5,392 Mil.
Total Current Liabilities was €3,608 Mil.
Long-Term Debt was €2,092 Mil.
Net Income was 558.40684309 + 457.266931535 + 797.323600973 + 456.118569101 = €2,269 Mil.
Non Operating Income was 0 + 0 + 316.788321168 + 0 = €317 Mil.
Cash Flow from Operations was 693.486590038 + 531.922757091 + 1155.87996756 + 575.153255218 = €2,956 Mil.
Accounts Receivable was €428 Mil.
Revenue was 3057.11341724 + 2800.80977514 + 3090.76328643 + 2837.76496143 = €11,786 Mil.
Gross Profit was 1797.45344815 + 1622.87614778 + 1782.09521032 + 1614.11130252 = €6,817 Mil.
Total Current Assets was €2,471 Mil.
Total Assets was €7,644 Mil.
Property, Plant and Equipment(Net PPE) was €2,483 Mil.
Depreciation, Depletion and Amortization(DDA) was €536 Mil.
Selling, General & Admin. Expense(SGA) was €4,066 Mil.
Total Current Liabilities was €2,123 Mil.
Long-Term Debt was €1,507 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)
=(599.394101399 / 15705.4274563) / (427.541031869 / 11786.4514402)
=0.03816477 / 0.03627394
=1.0521

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)
=(2498.10588561 / 11786.4514402) / (2608.30437494 / 15705.4274563)
=0.57833659 / 0.59177407
=0.9773

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 - (4241.91392676 + 3544.23950815) / 11466.4528201) / (1 - (2470.67049385 + 2483.03525429) / 7643.55634062)
=0.32096233 / 0.35191087
=0.9121

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
=15705.4274563 / 11786.4514402
=1.3325

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))
=(536.146106603 / (536.146106603 + 2483.03525429)) / (758.800480492 / (758.800480492 + 3544.23950815))
=0.17757996 / 0.17634056
=1.007

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)
=(5392.39024402 / 15705.4274563) / (4065.71465122 / 11786.4514402)
=0.34334565 / 0.34494815
=0.9954

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)
=((2091.59761205 + 3607.947964) / 11466.4528201) / ((1507.39677633 + 2122.54360786) / 7643.55634062)
=0.49706266 / 0.47490202
=1.0467

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
=(2269.1159447 - 316.788321168 - 2956.44256991) / 11466.4528201
=-0.0876

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 -2.61 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 1.13080.96161.06211.03740.87371.01971.16851.1061.03181.0177
GMI 0.97351.03180.91361.21610.34420.95531.01141.02510.98510.9802
AQI 0.92021.04891.02641.20491.05541.05450.86581.00661.49211.154
SGI 1.20311.17471.10561.06950.92661.21841.04121.21321.08081.1442
DEPI 0.9881.08341.0550.85670.93410.99380.96591.05641.05420.9694
SGAI 0.97551.08341.37030.90965.24040.970.95520.96530.98860.9757
LVGI 1.58071.24991.15730.95380.7910.95450.97820.94131.72680.816
TATA -0.144-0.1493-0.1435-0.1863-0.179-0.1189-0.0498-0.0561-0.25180.1358
M-score -3.09-3.11-3.14-3.04-4.49-2.81-2.56-2.41-3.60-1.59

Starbucks Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.03350.9921.0141.10360.99951.04561.07921.10971.1391.0521
GMI 0.99760.98720.98640.98850.98840.98580.97870.97680.97580.9773
AQI 1.3671.29951.49211.98181.47691.73741.1541.01351.03470.9121
SGI 1.17311.12211.09991.08971.06311.06451.0791.13021.24681.3325
DEPI 1.05641.03091.03751.02140.98870.99321.01881.09851.13521.007
SGAI 0.97590.99050.99040.97820.98060.97350.97350.98410.99130.9954
LVGI 1.05311.06191.72681.4081.42821.44710.8160.93080.96481.0467
TATA -0.1215-0.1181-0.2528-0.0375-0.0466-0.05240.1264-0.1035-0.0992-0.0876
M-score -2.72-2.83-3.60-2.22-2.59-2.48-1.63-2.72-2.57-2.61
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