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Ark Restaurants (Ark Restaurants) Beneish M-Score

: -2.87 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.87 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Ark Restaurants's Beneish M-Score or its related term are showing as below:

ARKR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.5   Med: -2.87   Max: 4.39
Current: -2.87

During the past 13 years, the highest Beneish M-Score of Ark Restaurants was 4.39. The lowest was -3.50. And the median was -2.87.


Ark Restaurants Beneish M-Score Historical Data

The historical data trend for Ark Restaurants's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ark Restaurants Annual Data
Trend Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.87 -1.84 -2.18 -2.99 -2.90

Ark Restaurants Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.91 -3.22 -2.94 -2.90 -2.87

Competitive Comparison

For the Restaurants subindustry, Ark Restaurants's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ark Restaurants Beneish M-Score Distribution

For the Restaurants industry and Consumer Cyclical sector, Ark Restaurants's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Ark Restaurants's Beneish M-Score falls into.



Ark Restaurants Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Ark Restaurants 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 * 0.8162+0.528 * 1.0392+0.404 * 0.8348+0.892 * 0.9877+0.115 * 1.0776
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0116+4.679 * -0.037413-0.327 * 1.0022
=-2.87

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $5.0 Mil.
Revenue was 47.487 + 44.4 + 51.051 + 41.897 = $184.8 Mil.
Gross Profit was 18.439 + 14.953 + 20.616 + 14.791 = $68.8 Mil.
Total Current Assets was $21.4 Mil.
Total Assets was $173.6 Mil.
Property, Plant and Equipment(Net PPE) was $127.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.7 Mil.
Selling, General, & Admin. Expense(SGA) was $36.2 Mil.
Total Current Liabilities was $26.5 Mil.
Long-Term Debt & Capital Lease Obligation was $94.8 Mil.
Net Income was 1.37 + -10.364 + 3.195 + -0.484 = $-6.3 Mil.
Non Operating Income was 0.311 + -9.974 + 0.026 + 0 = $-9.6 Mil.
Cash Flow from Operations was 0.558 + 1.514 + 4.761 + 3.014 = $9.8 Mil.
Total Receivables was $6.3 Mil.
Revenue was 47.445 + 46.885 + 53.218 + 39.586 = $187.1 Mil.
Gross Profit was 18.488 + 17.774 + 22.273 + 13.849 = $72.4 Mil.
Total Current Assets was $35.4 Mil.
Total Assets was $203.6 Mil.
Property, Plant and Equipment(Net PPE) was $134.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.3 Mil.
Selling, General, & Admin. Expense(SGA) was $36.2 Mil.
Total Current Liabilities was $30.6 Mil.
Long-Term Debt & Capital Lease Obligation was $111.4 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
=(5.044 / 184.835) / (6.257 / 187.134)
=0.027289 / 0.033436
=0.8162

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)
=(72.384 / 187.134) / (68.799 / 184.835)
=0.386803 / 0.372218
=1.0392

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 Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (21.4 + 127.939) / 173.55) / (1 - (35.436 + 134.168) / 203.633)
=0.139504 / 0.167109
=0.8348

4. SGI = Sales Growth Index

Ratio of Revenue 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
=184.835 / 187.134
=0.9877

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
=(5.282 / (5.282 + 134.168)) / (4.661 / (4.661 + 127.939))
=0.037877 / 0.035151
=1.0776

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
=(36.211 / 184.835) / (36.241 / 187.134)
=0.19591 / 0.193663
=1.0116

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 in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((94.793 + 26.479) / 173.55) / ((111.398 + 30.586) / 203.633)
=0.698773 / 0.697254
=1.0022

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
=(-6.283 - -9.637 - 9.847) / 173.55
=-0.037413

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Ark Restaurants has a M-score of -2.87 suggests that the company is unlikely to be a manipulator.


Ark Restaurants Beneish M-Score Related Terms

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Ark Restaurants (Ark Restaurants) Business Description

Traded in Other Exchanges
N/A
Address
85 5th Avenue, 14th Floor, New York, NY, USA, 10003
Ark Restaurants Corp owns and operates around 17 restaurants and bars, 16 fast food concepts, and catering operations in the USA. The Las Vegas operations include New York Hotel & Casino Resort, hotel room service operations, banquet facilities, employee dining room, food court concepts, and a restaurant within the Planet Hollywood Resort and Casino. It operates a restaurant and a bar in the Resorts Atlantic City Hotel and Casino and a restaurant in the Tropicana Hotel and Casino. The Florida operations include The Rustic Inn in Dania Beach, Shuckers in Jensen Beach, JB's on the Beach in Deerfield Beach, The Blue Moon Fish Company in Fort Lauderdale, and fast food facilities in Tampa and Hollywood. In Alabama, it operates Original Oyster Houses in Gulf Shores and Spanish Fort.
Executives
Satterfield Thomas A Jr 10 percent owner 2609 CALDWELL MILL LN, BIRMINGHAM AL 35243
Michael S Weinstein director, 10 percent owner, officer: Chairman & CEO C/O ARK RESTAURANTS CORP, 85 FIFTH AVENUE, NEW YORK NY 10003
Anthony Sirica director, officer: Chief Financial Officer 85 FIFTH AVENUE, NEW YORK NY 10003
Paul Gordon director, officer: Senior Vice President C/O ARK LAS VEGAS RESTAURANTS CORP, 3790 LAS VEGAS BLVD S SUITE 11, LAS VEGAS NV 89109
Vincent Pascal director, officer: Senior Vice President C/O ARK RESTAURANTS CORP, 85 FIFTH AVE, NEW YORK NY 10003
Steven Shulman director C/O PARAGON TECHNOLOGIES INC, 600 KUEBLER ROAD, EASTON PA 18040
Robert J Stewart director, officer: President and CFO C/O ARK RESTAURANTS CORP, 85 FIFTH AVE, NEW YORK NY 10003
Arthur Stainman director 320 EAST 72ND STREET, NEW YORK NY 10021
Bruce R Lewin director G&G RETAIL INC, 520 EIGHTH AVENUE, NEW YORK NY 10018
Robert Towers director, officer: Executive Vice President C/O ARK RESTAURANTS CORP, 85 FIFTH AVE, NEW YORK NY 10003
Marcia Allen director P.O. BOX 399, 2600 W. HOMESTEAD CIRCLE, WILSON WY 83014
Prides Capital Partners, Llc 10 percent owner 200 HIGH STREET, SUITE 700, BOSTON MA 02110
Robert Thomas Zankel director 808 BROADWAY, PHB, NEW YORK NY 10003
Stephen A Novick director ANDREA & CHARLES BRONFMAN PHILANTROPIES, 110 EAST 59TH STREET, 26TH FLOOR, NEW YORK NY 10022
Charles E Mccarthy 10 percent owner 200 HIGH STREET, SUITE 700, BOSTON MA 02110

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