DRI has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
Darden Restaurants Inc has a M-score of -1.96 signals that the company is a manipulator.
During the past 13 years, the highest Beneish M-Score of Darden Restaurants Inc was 2.67. The lowest was -3.95. And the median was -2.79.
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 Darden Restaurants Inc 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 * 1.6273||+||0.528 * 1.0677||+||0.404 * 1.1247||+||0.892 * 0.6597||+||0.115 * 1.1032|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0465||+||4.679 * 0.024||-||0.327 * 0.8797|
|This Year (Aug14) TTM:||Last Year (Aug13) TTM:|
|Accounts Receivable was $86 Mil.|
Revenue was 1595.8 + -155.9 + 2233.1 + 2049.9 = $5,723 Mil.
Gross Profit was 313.2 + -14.1 + 472.2 + 379.8 = $1,151 Mil.
Total Current Assets was $1,004 Mil.
Total Assets was $6,124 Mil.
Property, Plant and Equipment(Net PPE) was $3,380 Mil.
Depreciation, Depletion and Amortization(DDA) was $277 Mil.
Selling, General & Admin. Expense(SGA) was $593 Mil.
Total Current Liabilities was $1,602 Mil.
Long-Term Debt was $1,520 Mil.
Net Income was 503.2 + 86.5 + 109.7 + 19.8 = $719 Mil.
Non Operating Income was -6.9 + -18.3 + 0 + 0 = $-25 Mil.
Cash Flow from Operations was 44.6 + 103.4 + 363.7 + 86 = $598 Mil.
|Accounts Receivable was $80 Mil.
Revenue was 2158.5 + 2298.9 + 2258.2 + 1960 = $8,676 Mil.
Gross Profit was 457.2 + 508.7 + 505.9 + 391.3 = $1,863 Mil.
Total Current Assets was $810 Mil.
Total Assets was $7,064 Mil.
Property, Plant and Equipment(Net PPE) was $4,470 Mil.
Depreciation, Depletion and Amortization(DDA) was $408 Mil.
Selling, General & Admin. Expense(SGA) was $860 Mil.
Total Current Liabilities was $1,563 Mil.
Long-Term Debt was $2,530 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(86.2 / 5722.9)||/||(80.3 / 8675.6)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(-14.1 / 8675.6)||/||(313.2 / 5722.9)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (1003.9 + 3380) / 6124.1)||/||(1 - (809.7 + 4469.6) / 7064)|
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.
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))|
|=||(408 / (408 + 4469.6))||/||(277.3 / (277.3 + 3380))|
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)|
|=||(593.4 / 5722.9)||/||(859.6 / 8675.6)|
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)|
|=||((1519.9 + 1601.8) / 6124.1)||/||((2530.1 + 1563.1) / 7064)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(719.2 - -25.2||-||597.7)||/||6124.1|
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.
Darden Restaurants Inc has a M-score of -1.96 signals that the company is likely to be a manipulator.
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
Darden Restaurants Inc Annual Data
Darden Restaurants Inc Quarterly Data