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Henry Schein Inc (NAS:HSIC)
Beneish M-Score
-2.48 (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.

Henry Schein Inc has a M-score of -2.48 suggests that the company is not a manipulator.

HSIC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.99   Max: -1.38
Current: -2.48

-2.99
-1.38

During the past 13 years, the highest Beneish M-Score of Henry Schein Inc was -1.38. The lowest was -2.99. And the median was -2.52.


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 Henry Schein 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 * 1.0428+0.528 * 1.0059+0.404 * 0.9669+0.892 * 1.0675+0.115 * 0.9737
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9894+4.679 * -0.0136-0.327 * 1.0799
=-2.48

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $1,296 Mil.
Revenue was 2872.63 + 2712.956 + 2850.918 + 2685.835 = $11,122 Mil.
Gross Profit was 803.316 + 779.305 + 799.278 + 748.908 = $3,131 Mil.
Total Current Assets was $3,278 Mil.
Total Assets was $6,634 Mil.
Property, Plant and Equipment(Net PPE) was $320 Mil.
Depreciation, Depletion and Amortization(DDA) was $166 Mil.
Selling, General & Admin. Expense(SGA) was $2,339 Mil.
Total Current Liabilities was $1,911 Mil.
Long-Term Debt was $700 Mil.
Net Income was 120.097 + 113.752 + 129.948 + 127.735 = $492 Mil.
Non Operating Income was 0.268 + 3.137 + 0.193 + -0.277 = $3 Mil.
Cash Flow from Operations was 274.384 + -101.512 + 298.311 + 107.428 = $579 Mil.
Accounts Receivable was $1,164 Mil.
Revenue was 2629.32 + 2463.646 + 2702.096 + 2623.729 = $10,419 Mil.
Gross Profit was 750.678 + 713.395 + 764.464 + 721.666 = $2,950 Mil.
Total Current Assets was $2,905 Mil.
Total Assets was $6,106 Mil.
Property, Plant and Equipment(Net PPE) was $310 Mil.
Depreciation, Depletion and Amortization(DDA) was $155 Mil.
Selling, General & Admin. Expense(SGA) was $2,215 Mil.
Total Current Liabilities was $1,637 Mil.
Long-Term Debt was $589 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)
=(1296.225 / 11122.339) / (1164.38 / 10418.791)
=0.11654248 / 0.11175769
=1.0428

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)
=(2950.203 / 10418.791) / (3130.807 / 11122.339)
=0.28316174 / 0.28148818
=1.0059

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 - (3277.591 + 320.098) / 6633.596) / (1 - (2905.337 + 310.333) / 6105.626)
=0.4576563 / 0.47332673
=0.9669

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
=11122.339 / 10418.791
=1.0675

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))
=(154.924 / (154.924 + 310.333)) / (166.35 / (166.35 + 320.098))
=0.33298586 / 0.34196872
=0.9737

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)
=(2339.073 / 11122.339) / (2214.692 / 10418.791)
=0.21030406 / 0.21256708
=0.9894

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)
=((700.052 + 1910.912) / 6633.596) / ((588.523 + 1636.742) / 6105.626)
=0.39359708 / 0.3644614
=1.0799

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
=(491.532 - 3.321 - 578.611) / 6633.596
=-0.0136

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.

Henry Schein Inc has a M-score of -2.48 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.

Henry Schein Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.93870.99270.9590.96441.06070.88481.09050.97190.9851.0642
GMI 0.99141.00290.98971.0021.01651.01751.01061.00960.98970.9906
AQI 1.12211.04670.9721.00221.3060.99540.94941.01191.0620.957
SGI 1.11541.16961.08061.02481.15121.13331.0481.06941.08481.0249
DEPI 1.07330.9740.95921.00310.83520.9330.97570.99140.96560.9853
SGAI 1.0010.97270.99720.98810.98120.98930.97360.98781.0230.9967
LVGI 0.93520.93670.97230.85970.99941.00341.06570.96771.06371.0607
TATA -0.0255-0.018-0.0388-0.0229-0.0154-0.0399-0.0043-0.0418-0.0213-0.0165
M-score -2.48-2.38-2.64-2.55-2.24-2.65-2.41-2.62-2.53-2.52

Henry Schein Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.02291.07390.98990.9850.91760.93321.00951.06421.10931.0428
GMI 0.99810.99660.99390.98970.99150.9840.98270.99060.99461.0059
AQI 1.02061.02891.04991.0621.03641.01770.97550.9570.95050.9669
SGI 1.06161.06391.07971.08481.0731.05021.0281.02491.04561.0675
DEPI 1.03331.04351.01520.96560.91760.95820.95870.98531.02910.9737
SGAI 1.00331.01311.02061.0231.01341.01441.00510.99670.99780.9894
LVGI 1.03511.08161.14441.06371.0110.98820.9861.06071.08511.0799
TATA -0.0359-0.0215-0.0231-0.0213-0.0261-0.0263-0.0126-0.0165-0.0039-0.0136
M-score -2.57-2.47-2.56-2.53-2.62-2.62-2.53-2.52-2.40-2.48
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