Switch to:
Henry Schein Inc (NAS:HSIC)
Beneish M-Score
-2.57 (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 -2.57 suggests that the company is not a manipulator.

HSIC' s 10-Year Beneish M-Score Range
Min: -2.91   Max: -1.38
Current: -2.57

-2.91
-1.38

During the past 13 years, the highest Beneish M-Score of Henry Schein Inc was -1.38. The lowest was -2.91. And the median was -2.47.


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 * 1.0229+0.528 * 0.9981+0.404 * 1.0206+0.892 * 1.0616+0.115 * 1.0333
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0033+4.679 * -0.0359-0.327 * 1.0351
=-2.57

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $1,117 Mil.
Revenue was 2430.159 + 2526.37 + 2348.956 + 2391.81 = $9,697 Mil.
Gross Profit was 696.713 + 699.52 + 639.647 + 669.856 = $2,706 Mil.
Total Current Assets was $2,877 Mil.
Total Assets was $5,880 Mil.
Property, Plant and Equipment(Net PPE) was $286 Mil.
Depreciation, Depletion and Amortization(DDA) was $132 Mil.
Selling, General & Admin. Expense(SGA) was $2,025 Mil.
Total Current Liabilities was $1,613 Mil.
Long-Term Debt was $542 Mil.
Net Income was 102.099 + 124.268 + 107.378 + 108.43 = $442 Mil.
Non Operating Income was 3.58 + 1.466 + 1.263 + -0.034 = $6 Mil.
Cash Flow from Operations was -55.249 + 274.628 + 152.796 + 274.798 = $647 Mil.
Accounts Receivable was $1,028 Mil.
Revenue was 2293.511 + 2408.438 + 2231.058 + 2201.452 = $9,134 Mil.
Gross Profit was 646.991 + 663.495 + 609.044 + 624.395 = $2,544 Mil.
Total Current Assets was $2,585 Mil.
Total Assets was $5,206 Mil.
Property, Plant and Equipment(Net PPE) was $263 Mil.
Depreciation, Depletion and Amortization(DDA) was $127 Mil.
Selling, General & Admin. Expense(SGA) was $1,901 Mil.
Total Current Liabilities was $1,243 Mil.
Long-Term Debt was $601 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)
=(1116.502 / 9697.295) / (1028.163 / 9134.459)
=0.11513541 / 0.11255872
=1.0229

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)
=(699.52 / 9134.459) / (696.713 / 9697.295)
=0.27849761 / 0.27901966
=0.9981

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 - (2876.906 + 285.528) / 5880.11) / (1 - (2585.415 + 262.825) / 5205.686)
=0.46218115 / 0.45285982
=1.0206

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
=9697.295 / 9134.459
=1.0616

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))
=(127.295 / (127.295 + 262.825)) / (131.778 / (131.778 + 285.528))
=0.32629704 / 0.31578266
=1.0333

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)
=(2025.043 / 9697.295) / (1901.27 / 9134.459)
=0.20882555 / 0.20814259
=1.0033

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)
=((541.687 + 1613.261) / 5880.11) / ((600.599 + 1242.569) / 5205.686)
=0.3664809 / 0.35406822
=1.0351

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
=(442.175 - 6.275 - 646.973) / 5880.11
=-0.0359

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 -2.57 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.97290.90480.93870.99270.9590.96441.06070.88481.09050.9719
GMI 1.05120.93560.99141.00290.98971.0021.01651.01751.01061.0096
AQI 1.21510.92071.12211.04670.9721.00221.3060.99540.94941.0119
SGI 1.22061.1611.11541.16961.08061.02481.15121.13331.0481.0694
DEPI 0.85450.9391.07330.9740.95921.00310.83520.9330.97570.9914
SGAI 1.04531.04491.0010.97270.99720.98810.98120.98930.97360.9878
LVGI 1.18980.93750.93520.93670.97230.85970.99941.00341.06570.9677
TATA -0.0279-0.0455-0.0258-0.018-0.0388-0.0229-0.0154-0.0399-0.0043-0.0418
M-score -2.41-2.70-2.48-2.38-2.64-2.55-2.24-2.65-2.41-2.62

Henry Schein Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.88480.910.92230.97521.09051.02061.00391.0010.97191.0229
GMI 1.01751.01611.01291.01241.01061.01861.01831.01421.00960.9981
AQI 0.99540.97681.00270.99030.94940.98290.97210.98361.01191.0206
SGI 1.13331.12541.09471.08011.0481.05221.06541.06441.06941.0616
DEPI 0.9330.89230.89750.93250.97570.95710.95830.97650.99141.0333
SGAI 0.98930.98250.98190.97840.97360.97160.97060.97350.98781.0033
LVGI 1.00340.97711.07781.1251.06571.05840.95980.9030.96771.0351
TATA -0.0399-0.0184-0.0258-0.0213-0.0043-0.0042-0.0207-0.0323-0.0418-0.0359
M-score -2.65-2.54-2.61-2.57-2.41-2.45-2.50-2.54-2.62-2.57
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)
Free 7-day Trial
FEEDBACK
Email Hide