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Starbucks Corp (FRA:SRB)
Beneish M-Score
-2.92 (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 -3.02 suggests that the company is not a manipulator.

FRA:SRB' s Beneish M-Score Range Over the Past 10 Years
Min: -10.87   Max: -1.57
Current: -2.92

-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 -2.80.


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 * 0.9403+0.528 * 0.9823+0.404 * 0.9807+0.892 * 1.384+0.115 * 0.8634
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0015+4.679 * -0.1637-0.327 * 1.084
=-3.02

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was €702 Mil.
Revenue was 4932.98448545 + 0 + 4349.28272298 + 4216.48341495 = €13,499 Mil.
Gross Profit was 2926.00752777 + 0 + 2608.30437494 + 2498.10588561 = €8,032 Mil.
Total Current Assets was €4,340 Mil.
Total Assets was €11,882 Mil.
Property, Plant and Equipment(Net PPE) was €3,785 Mil.
Depreciation, Depletion and Amortization(DDA) was €874 Mil.
Selling, General & Admin. Expense(SGA) was €4,667 Mil.
Total Current Liabilities was €4,058 Mil.
Long-Term Debt was €1,788 Mil.
Net Income was 631.231065822 + 0 + 558.40684309 + 457.266931535 = €1,647 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 1501.88194253 + 864.207431168 + 693.486590038 + 531.922757091 = €3,591 Mil.
Accounts Receivable was €539 Mil.
Revenue was 3895.53933496 + 0 + 3057.11341724 + 2800.80977514 = €9,753 Mil.
Gross Profit was 2280.61638281 + 0 + 1797.45344815 + 1622.87614778 = €5,701 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 €3,367 Mil.
Total Current Liabilities was €2,885 Mil.
Long-Term Debt was €1,661 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)
=(701.735059212 / 13498.7506234) / (539.253852393 / 9753.46252734)
=0.05198519 / 0.05528845
=0.9403

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)
=(0 / 9753.46252734) / (2926.00752777 / 13498.7506234)
=0.58450483 / 0.59504898
=0.9823

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 - (4340.12668686 + 3784.54053062) / 11882.4015423) / (1 - (3687.02351987 + 3100) / 10017.1127332)
=0.31624367 / 0.32245711
=0.9807

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
=13498.7506234 / 9753.46252734
=1.384

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))
=(599.074626325 / (599.074626325 + 3100)) / (873.843605815 / (873.843605815 + 3784.54053062))
=0.16195257 / 0.18758513
=0.8634

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)
=(4667.41997364 / 13498.7506234) / (3367.31621655 / 9753.46252734)
=0.34576681 / 0.34524316
=1.0015

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)
=((1788.21261361 + 4057.743505) / 11882.4015423) / ((1661.31386861 + 2885.23925385) / 10017.1127332)
=0.49198439 / 0.4538786
=1.084

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
=(1646.90484045 - 0 - 3591.49872083) / 11882.4015423
=-0.1637

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 -3.02 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 0.96161.06211.03740.87371.01971.16851.1061.03361.01590.978
GMI 1.03180.91360.42230.99120.9491.01321.03020.98630.97890.9821
AQI 1.04891.02641.20491.05541.05450.86581.00661.49211.1541.1289
SGI 1.17471.10561.06950.92661.21841.04121.21321.0791.14621.3378
DEPI 1.10811.0550.85670.93410.99380.96591.05641.05420.96940.9432
SGAI 1.08341.37034.8610.98060.98310.95190.95570.99020.9741.0075
LVGI 1.24991.15730.95380.7910.95450.97820.94131.72680.8161.0192
TATA -0.1493-0.1435-0.1663-0.179-0.1268-0.0656-0.0446-0.25180.1358-0.1062
M-score -3.11-3.14-4.05-3.42-2.85-2.63-2.35-3.59-1.59-2.67

Starbucks Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.011.10271.00671.05251.10111.11391.1091.00680.93960.9403
GMI 0.98330.98620.98610.98270.98270.97990.97850.98070.98070.9823
AQI 1.49211.98181.47691.73741.1541.01351.03470.91211.12890.9807
SGI 1.10421.09061.05551.05751.05751.1261.28041.39251.39251.384
DEPI 1.03751.02140.98870.99321.01881.09851.13521.0070.91720.8634
SGAI 0.99820.98180.98490.97550.97550.9890.99711.00181.00181.0015
LVGI 1.72681.4081.42821.44710.8160.93080.96481.04671.01921.084
TATA -0.14580.08590.07980.06830.0718-0.149-0.1397-0.1273-0.1577-0.1637
M-score -3.10-1.64-2.00-1.91-1.88-2.93-2.75-2.78-2.90-3.02
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