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Ark Restaurants Corp (NAS:ARKR)
Beneish M-Score
-2.79 (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.

Ark Restaurants Corp has a M-score of -2.79 suggests that the company is not a manipulator.

ARKR' s Beneish M-Score Range Over the Past 10 Years
Min: -10.1   Max: 23.75
Current: -2.79

-10.1
23.75

During the past 13 years, the highest Beneish M-Score of Ark Restaurants Corp was 23.75. The lowest was -10.10. And the median was -2.82.


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 Ark Restaurants 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 * 1.1094+0.528 * 0.971+0.404 * 1.0039+0.892 * 1.0726+0.115 * 1.078
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.01+4.679 * -0.0935-0.327 * 1.102
=-2.79

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $3.3 Mil.
Revenue was 34.272 + 36.109 + 40.581 + 40.375 = $151.3 Mil.
Gross Profit was 3.225 + 5.099 + 7.448 + 8.574 = $24.3 Mil.
Total Current Assets was $14.2 Mil.
Total Assets was $66.9 Mil.
Property, Plant and Equipment(Net PPE) was $30.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.5 Mil.
Selling, General & Admin. Expense(SGA) was $11.5 Mil.
Total Current Liabilities was $17.5 Mil.
Long-Term Debt was $6.6 Mil.
Net Income was -0.646 + 0.321 + 2.009 + 3.241 = $4.9 Mil.
Non Operating Income was 0.16 + 0.061 + 0.074 + 0.042 = $0.3 Mil.
Cash Flow from Operations was 1.993 + -0.961 + 4.768 + 5.045 = $10.8 Mil.
Accounts Receivable was $2.7 Mil.
Revenue was 31.548 + 33.359 + 37.071 + 39.11 = $141.1 Mil.
Gross Profit was 2.895 + 5.324 + 6.75 + 7.071 = $22.0 Mil.
Total Current Assets was $12.9 Mil.
Total Assets was $61.9 Mil.
Property, Plant and Equipment(Net PPE) was $28.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $4.6 Mil.
Selling, General & Admin. Expense(SGA) was $10.6 Mil.
Total Current Liabilities was $15.5 Mil.
Long-Term Debt was $4.7 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)
=(3.257 / 151.337) / (2.737 / 141.088)
=0.0215215 / 0.01939924
=1.1094

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)
=(5.099 / 141.088) / (3.225 / 151.337)
=0.15621456 / 0.16087275
=0.971

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 - (14.191 + 30.165) / 66.943) / (1 - (12.922 + 28.164) / 61.885)
=0.33740645 / 0.33609114
=1.0039

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
=151.337 / 141.088
=1.0726

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))
=(4.569 / (4.569 + 28.164)) / (4.487 / (4.487 + 30.165))
=0.13958391 / 0.12948748
=1.078

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)
=(11.494 / 151.337) / (10.61 / 141.088)
=0.0759497 / 0.07520129
=1.01

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)
=((6.617 + 17.465) / 66.943) / ((4.715 + 15.487) / 61.885)
=0.35973888 / 0.32644421
=1.102

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
=(4.925 - 0.337 - 10.845) / 66.943
=-0.0935

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.

Ark Restaurants Corp has a M-score of -2.79 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.

Ark Restaurants Corp Annual Data

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
DSRI 1.08790.95891.08830.75860.98471.51671.0410.75631.04221.0203
GMI 0.22321.20230.84715.36190.98261.05050.76670.35712.9770.9779
AQI 0.95020.96680.92361.03041.13661.12190.85391.27621.11370.9858
SGI 1.00341.0710.98980.93551.0241.18410.98980.94621.06711.0467
DEPI 0.98421.13221.08070.87680.91130.85451.19410.92411.06881.0021
SGAI 10.28980.77951.27660.11851.05190.8410.99885.89820.18650.9998
LVGI 1.13821.13390.68231.33511.14930.84711.06881.17471.16460.9505
TATA -0.11520.0085-0.0943-0.0941-0.0645-0.1428-0.1521-0.1726-0.1144-0.0924
M-score -5.01-2.31-2.90-0.86-2.80-2.37-3.35-4.70-1.73-2.85

Ark Restaurants Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.80961.09420.69151.04220.99090.96241.77891.02031.77551.1094
GMI 0.5330.54360.03011.48631.03491.06890.95460.97791.00250.971
AQI 1.17250.94581.01731.11371.04631.07350.97320.98581.00561.0039
SGI 0.96260.98271.02261.06711.06981.05811.04681.04671.05721.0726
DEPI 0.99011.11291.07431.06881.07340.94780.96341.00211.09541.078
SGAI -8.7557-14.158-0.79970.47240.9641.01811.03090.99971.00511.01
LVGI 1.14971.18821.2291.16461.17750.89150.91330.95051.08441.102
TATA -0.1772-0.1437-0.151-0.1144-0.1104-0.0923-0.0828-0.0924-0.0561-0.0935
M-score -2.07-0.79-3.71-2.57-2.95-2.80-2.13-2.85-1.99-2.79
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