Switch to:
Brinker International Inc (NYSE:EAT)
Beneish M-Score
-3.13 (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.

Brinker International Inc has a M-score of -3.13 suggests that the company is not a manipulator.

EAT' s Beneish M-Score Range Over the Past 10 Years
Min: -6.27   Max: -0.89
Current: -3.13

-6.27
-0.89

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 -3.00.


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 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 * 0.9029+0.528 * 1.0288+0.404 * 1.1013+0.892 * 1.0477+0.115 * 0.9498
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8945+4.679 * -0.1338-0.327 * 1.1504
=-3.13

* 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 $41 Mil.
Revenue was 824.639 + 788.61 + 762.559 + 764.147 = $3,140 Mil.
Gross Profit was 159.36 + 146.555 + 130.206 + 162.212 = $598 Mil.
Total Current Assets was $197 Mil.
Total Assets was $1,489 Mil.
Property, Plant and Equipment(Net PPE) was $1,053 Mil.
Depreciation, Depletion and Amortization(DDA) was $154 Mil.
Selling, General & Admin. Expense(SGA) was $130 Mil.
Total Current Liabilities was $422 Mil.
Long-Term Debt was $1,175 Mil.
Net Income was 57.502 + 47.694 + 33.207 + 57.223 = $196 Mil.
Non Operating Income was 0.277 + 0.56 + 0.273 + 0.513 = $2 Mil.
Cash Flow from Operations was 144.016 + 110.016 + 45.549 + 93.704 = $393 Mil.
Accounts Receivable was $43 Mil.
Revenue was 784.215 + 742.898 + 711.018 + 758.725 = $2,997 Mil.
Gross Profit was 166.539 + 142.505 + 123.419 + 155.043 = $588 Mil.
Total Current Assets was $190 Mil.
Total Assets was $1,437 Mil.
Property, Plant and Equipment(Net PPE) was $1,037 Mil.
Depreciation, Depletion and Amortization(DDA) was $143 Mil.
Selling, General & Admin. Expense(SGA) was $138 Mil.
Total Current Liabilities was $407 Mil.
Long-Term Debt was $933 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)
=(40.759 / 3139.955) / (43.083 / 2996.856)
=0.01298076 / 0.01437607
=0.9029

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)
=(587.506 / 2996.856) / (598.333 / 3139.955)
=0.19604078 / 0.19055464
=1.0288

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 - (196.724 + 1053.024) / 1489.188) / (1 - (190.046 + 1037.425) / 1437.319)
=0.16078561 / 0.1459996
=1.1013

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
=3139.955 / 2996.856
=1.0477

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))
=(143.382 / (143.382 + 1037.425)) / (154.364 / (154.364 + 1053.024))
=0.12142713 / 0.12784954
=0.9498

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)
=(129.56 / 3139.955) / (138.233 / 2996.856)
=0.04126174 / 0.04612601
=0.8945

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)
=((1174.66 + 422.291) / 1489.188) / ((933.207 + 406.641) / 1437.319)
=1.0723636 / 0.93218555
=1.1504

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
=(195.626 - 1.623 - 393.285) / 1489.188
=-0.1338

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 -3.13 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.

Brinker International Inc Annual Data

Jun07Jun08Jun09Jun10Jun11Jun12Jun13Jun14Jun15Jun16
DSRI 0.89991.08431.10731.15480.98120.99270.86441.23860.94220
GMI 0.24261.0060.99391.00894.13230.95780.95140.98530.97231.043
AQI 0.92441.2170.97331.30211.16310.98751.09130.99730.99541.1511
SGI 1.05430.96760.85490.78950.9661.02151.0091.02091.03331.085
DEPI 0.83931.17220.94120.96450.99051.01320.950.98710.92490.9464
SGAI 12.04671.00921.00340.99090.07981.05670.94540.98580.94670.8734
LVGI 1.31761.10060.89520.90231.16281.12651.16911.08121.11081.0852
TATA -0.1122-0.1431-0.1053-0.1105-0.0843-0.1086-0.0895-0.1396-0.1212-0.1327
M-score -5.50-3.02-2.99-2.89-1.10-3.05-3.06-2.93-3.12-3.87

Brinker International Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.11741.23861.26441.10890.95130.94220.91760.83650.90290
GMI 0.97440.98530.98540.97730.9820.97230.97890.99671.02881.043
AQI 1.07880.99731.01230.9740.97330.99541.15411.14131.10131.1511
SGI 1.01141.02091.03021.03841.04171.03331.04141.04321.04771.085
DEPI 0.98670.98710.97710.96250.93930.92490.96530.95690.94980.9464
SGAI 0.91830.9830.98190.99560.99980.94940.95790.93640.89450.8748
LVGI 1.15171.08121.07451.0991.09581.11081.10771.11511.15041.0852
TATA -0.1213-0.1396-0.149-0.1408-0.1332-0.1212-0.0955-0.1012-0.1338-0.1327
M-score -2.95-2.93-2.93-3.06-3.17-3.12-2.95-3.04-3.13-3.87
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK