EAT 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.
Brinker International Inc has a M-score of -3.18 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of Brinker International Inc was -0.89. The lowest was -6.27. And the median was -2.94.
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 Brinker International 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 * 0.9563||+||0.528 * 0.9853||+||0.404 * 0.9973||+||0.892 * 1.0209||+||0.115 * 0.9871|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.9576||+||4.679 * -0.1396||-||0.327 * 1.0802|
|This Year (Jun14) TTM:||Last Year (Jun13) TTM:|
|Accounts Receivable was $48 Mil.|
Revenue was 758.725 + 758.408 + 704.395 + 683.924 = $2,905 Mil.
Gross Profit was 155.043 + 157.505 + 129.42 + 117.596 = $560 Mil.
Total Current Assets was $211 Mil.
Total Assets was $1,491 Mil.
Property, Plant and Equipment(Net PPE) was $1,056 Mil.
Depreciation, Depletion and Amortization(DDA) was $136 Mil.
Selling, General & Admin. Expense(SGA) was $137 Mil.
Total Current Liabilities was $466 Mil.
Long-Term Debt was $832 Mil.
Net Income was 28.82 + 56.263 + 39.744 + 29.212 = $154 Mil.
Non Operating Income was 0.478 + 0.693 + 0.461 + 0.582 = $2 Mil.
Cash Flow from Operations was 82.742 + 129.779 + 91.905 + 55.416 = $360 Mil.
|Accounts Receivable was $49 Mil.
Revenue was 730.068 + 742.759 + 689.764 + 683.507 = $2,846 Mil.
Gross Profit was 149.312 + 148.084 + 125.805 + 116.893 = $540 Mil.
Total Current Assets was $199 Mil.
Total Assets was $1,453 Mil.
Property, Plant and Equipment(Net PPE) was $1,036 Mil.
Depreciation, Depletion and Amortization(DDA) was $131 Mil.
Selling, General & Admin. Expense(SGA) was $140 Mil.
Total Current Liabilities was $391 Mil.
Long-Term Debt was $780 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)|
|=||(47.85 / 2905.452)||/||(49.012 / 2846.098)|
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)|
|=||(157.505 / 2846.098)||/||(155.043 / 2905.452)|
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 - (210.854 + 1056.454) / 1490.604)||/||(1 - (198.591 + 1035.815) / 1452.603)|
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))|
|=||(131.481 / (131.481 + 1035.815))||/||(136.081 / (136.081 + 1056.454))|
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)|
|=||(137.254 / 2905.452)||/||(140.41 / 2846.098)|
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)|
|=||((832.302 + 466.11) / 1490.604)||/||((780.121 + 391.232) / 1452.603)|
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|
|=||(154.039 - 2.214||-||359.842)||/||1490.604|
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.
Brinker International Inc has a M-score of -3.18 suggests that the company will not 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
Brinker International Inc Annual Data
Brinker International Inc Quarterly Data