Starbucks Beneish M Score

SBUX
 Stock
  

USD 98.66  0.90  0.90%   

This module uses fundamental data of Starbucks Corp to approximate the value of its Beneish M Score. Starbucks Corp M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Additionally, take a look at Starbucks Corp Piotroski F Score and Starbucks Corp Altman Z Score analysis.
  
Starbucks Corp Total Debt is fairly stable at the moment as compared to the past year. Starbucks Corp reported Total Debt of 494.64 Million in 2021. Debt Current is likely to rise to about 690.5 M in 2022, whereas Issuance Repayment of Debt Securities is likely to drop (28.4 M) in 2022. Starbucks Corp Dividends per Basic Common Share is fairly stable at the moment as compared to the past year. Starbucks Corp reported Dividends per Basic Common Share of 0.31 in 2021. Enterprise Value over EBIT is likely to rise to 21.09 in 2022, whereas Book Value per Share is likely to drop 2.55 in 2022.
At this time, it appears that Starbucks Corp is an unlikely manipulator. The earnings manipulation may begin if Starbucks Corp's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Starbucks Corp executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Starbucks Corp's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.41
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.93Focus
Asset Quality0.79Focus
Expense Coverage0.96Focus
Gross Margin Strengs0.98Focus
Accruals Factor0.96Focus
Depreciation Resistance1.02Focus
Net Sales Growth0.93Focus
Financial Leverage Condition0.88Focus

Starbucks Corp Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Starbucks Corp's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense641.2 M721.1 M
Fairly Down
Decreasing
Slightly volatile
Revenues30 B32.3 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables377.6 M437.3 M
Fairly Down
Decreasing
Slightly volatile
Property Plant and Equipment Net2.3 B2.4 B
Fairly Down
Decreasing
Slightly volatile
Operating Income4.2 B4.4 B
Sufficiently Down
Increasing
Slightly volatile
Net Cash Flow from Operations8.6 B4.4 B
Way Up
Increasing
Slightly volatile
Liabilities Non Current878.9 M805.4 M
Significantly Up
Decreasing
Slightly volatile
Current Liabilities7.8 B9.2 B
Fairly Down
Increasing
Slightly volatile
Total Liabilities31.4 B36.7 B
Fairly Down
Increasing
Slightly volatile
Investments Non Current468.9 M518.3 M
Moderately Down
Decreasing
Slightly volatile
Investments Current823.8 M763.6 M
Significantly Up
Increasing
Slightly volatile
Investments1.4 B1.3 B
Significantly Up
Increasing
Stable
Gross Margin66.7668.0084
Fairly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion497.7 M522.5 M
Sufficiently Down
Decreasing
Slightly volatile
Debt Non Current581.4 M494.6 M
Fairly Up
Decreasing
Slightly volatile
Debt Current690.5 M640 M
Significantly Up
Increasing
Slightly volatile
Total Debt656.9 M494.6 M
Significantly Up
Decreasing
Slightly volatile
Assets Non Current3.6 B3.6 B
Slightly Down
Decreasing
Slightly volatile
Current Assets10.3 BB
Way Up
Increasing
Slightly volatile
Total Assets27.4 B28 B
Fairly Down
Increasing
Slightly volatile

Starbucks Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Starbucks Corp's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Starbucks Corp in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Starbucks Corp's degree of accounting gimmicks and manipulations.

About Starbucks Corp Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

497.7 Million

Starbucks Corp Depreciation Amortization and Accretion is fairly stable at the moment as compared to the past year. Starbucks Corp reported Depreciation Amortization and Accretion of 522.54 Million in 2021

Starbucks Corp ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Starbucks Corp's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Starbucks Corp's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Starbucks Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Starbucks Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Starbucks Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Starbucks Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Starbucks Corporation, together with its subsidiaries, operates as a roaster, marketer, and retailer of specialty coffee worldwide. Starbucks Corporation was founded in 1971 and is based in Seattle, Washington. Starbucks Corp operates under Restaurants classification in the United States and is traded on NASDAQ Exchange. It employs 402000 people.

Starbucks Corp Investors Sentiment

The influence of Starbucks Corp's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Starbucks. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Starbucks Corp's public news can be used to forecast risks associated with investment in Starbucks. The trend in average sentiment can be used to explain how an investor holding Starbucks can time the market purely based on public headlines and social activities around Starbucks Corp. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Starbucks Corp's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Starbucks Corp's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Starbucks Corp's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Starbucks Corp.

Starbucks Corp Implied Volatility

    
  35.46  
Starbucks Corp's implied volatility exposes the market's sentiment of Starbucks Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Starbucks Corp's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Starbucks Corp stock will not fluctuate a lot when Starbucks Corp's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Starbucks Corp in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Starbucks Corp's short interest history, or implied volatility extrapolated from Starbucks Corp options trading.

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Additionally, take a look at Starbucks Corp Piotroski F Score and Starbucks Corp Altman Z Score analysis. You can also try Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.

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Is Starbucks Corp's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Starbucks Corp. If investors know Starbucks will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Starbucks Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
(0.49) 
Market Capitalization
113.2 B
Quarterly Revenue Growth YOY
0.033
Return On Assets
0.0936
The market value of Starbucks Corp is measured differently than its book value, which is the value of Starbucks that is recorded on the company's balance sheet. Investors also form their own opinion of Starbucks Corp's value that differs from its market value or its book value, called intrinsic value, which is Starbucks Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Starbucks Corp's market value can be influenced by many factors that don't directly affect Starbucks Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Starbucks Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Starbucks Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Starbucks Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.