Starbucks Corporation — Earnings Quality Grade F
SBUX · Consumer Cyclical
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 13 days, change +0 days YoY
AR outpaced revenue for 2 consecutive years
Revenue 2.8%, CFFO -22.1%. Cash follows revenue
Expense Quality
Inventory 23.0% vs COGS 8.5%. Normal
CapEx growth -17.0% vs revenue 2.8%. Normal
SG&A/Gross Profit = 30.9%. Normal
Gross margin 22.8%, change -4.1pp. Stable
Cash Flow Quality
CFFO/NI = 2.56. Profits backed by cash
FCF $2.4B, FCF/NI = 1.32
Accruals ratio = -9.0%. Low accruals
Cash $3.5B covers only 13% of debt $26.6B
Balance Sheet Health
Goodwill+Intangibles $3.5B = -44% of equity. Manageable
Debt/EBITDA = 5.5x (>4x). Financial stress
Other assets grew 22.0% vs revenue 2.8%
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 3% YoY. Normal
Manipulation Score
M-Score = -2.78 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08