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Henry Schein Inc (NAS:HSIC)
Beneish M-Score
-2.52 (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 -2.52 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: -2.52

-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 * 1.0365+0.528 * 1.0124+0.404 * 0.988+0.892 * 1.0783+0.115 * 0.9944
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.991+4.679 * -0.0234-0.327 * 1.1062
=-2.52

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $1,368 Mil.
Revenue was 2865.148 + 2872.63 + 2712.956 + 2850.918 = $11,302 Mil.
Gross Profit was 789.491 + 803.316 + 779.305 + 799.278 = $3,171 Mil.
Total Current Assets was $3,286 Mil.
Total Assets was $6,634 Mil.
Property, Plant and Equipment(Net PPE) was $324 Mil.
Depreciation, Depletion and Amortization(DDA) was $166 Mil.
Selling, General & Admin. Expense(SGA) was $2,371 Mil.
Total Current Liabilities was $2,040 Mil.
Long-Term Debt was $718 Mil.
Net Income was 133.713 + 120.097 + 113.752 + 129.948 = $498 Mil.
Non Operating Income was -0.199 + 0.268 + 3.137 + 0.193 = $3 Mil.
Cash Flow from Operations was 178.081 + 274.384 + -101.512 + 298.311 = $649 Mil.
Accounts Receivable was $1,224 Mil.
Revenue was 2685.835 + 2629.32 + 2463.646 + 2702.096 = $10,481 Mil.
Gross Profit was 748.908 + 750.678 + 713.395 + 764.464 = $2,977 Mil.
Total Current Assets was $3,120 Mil.
Total Assets was $6,372 Mil.
Property, Plant and Equipment(Net PPE) was $312 Mil.
Depreciation, Depletion and Amortization(DDA) was $158 Mil.
Selling, General & Admin. Expense(SGA) was $2,219 Mil.
Total Current Liabilities was $1,797 Mil.
Long-Term Debt was $597 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)
=(1367.604 / 11301.652) / (1223.636 / 10480.897)
=0.12100921 / 0.11674917
=1.0365

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)
=(2977.445 / 10480.897) / (3171.39 / 11301.652)
=0.28408303 / 0.28061296
=1.0124

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 - (3285.955 + 324.108) / 6633.593) / (1 - (3120.173 + 311.891) / 6371.558)
=0.4557907 / 0.46134619
=0.988

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
=11301.652 / 10480.897
=1.0783

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))
=(158.461 / (158.461 + 311.891)) / (166.065 / (166.065 + 324.108))
=0.33689875 / 0.33878855
=0.9944

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)
=(2370.885 / 11301.652) / (2218.702 / 10480.897)
=0.20978216 / 0.21169009
=0.991

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)
=((718.024 + 2039.655) / 6633.593) / ((597.106 + 1797.281) / 6371.558)
=0.41571423 / 0.37579302
=1.1062

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
=(497.51 - 3.399 - 649.264) / 6633.593
=-0.0234

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 -2.52 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 local exchange's 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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.07390.98990.9850.91760.93321.00951.06421.10931.04281.0365
GMI 0.99660.99390.98970.99150.9840.98270.99060.99461.00591.0124
AQI 1.02891.04991.0621.03641.01770.97550.9570.95050.96690.988
SGI 1.06391.07971.08481.0731.05021.0281.02491.04561.06751.0783
DEPI 1.04351.01520.96560.91760.95820.95870.98531.02910.97370.9944
SGAI 1.01311.02061.0231.01341.01441.00510.99670.99780.98940.991
LVGI 1.08161.14441.06371.0110.98820.9861.06071.08511.07991.1062
TATA -0.0215-0.0231-0.0213-0.0261-0.0263-0.0126-0.0165-0.0039-0.0136-0.0234
M-score -2.47-2.56-2.53-2.62-2.62-2.53-2.52-2.40-2.48-2.52
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