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Henry Schein Inc (NAS:HSIC)
Beneish M-Score
-2.53 (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 -2.53 suggests that the company is not a manipulator.

HSIC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.91   Max: -1.38
Current: -2.53

-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 -2.49.


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 * 1.0095+0.528 * 0.9827+0.404 * 0.9755+0.892 * 1.028+0.115 * 0.9587
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0051+4.679 * -0.0126-0.327 * 0.986
=-2.53

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
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.
Net Income was 127.735 + 117.928 + 103.447 + 132.966 = $482 Mil.
Non Operating Income was -0.277 + -0.177 + 0.12 + 0.444 = $0 Mil.
Cash Flow from Operations was 107.428 + 207.756 + -26.654 + 274.019 = $563 Mil.
Accounts Receivable was $1,179 Mil.
Revenue was 2623.729 + 2615.406 + 2430.159 + 2526.37 = $10,196 Mil.
Gross Profit was 721.666 + 728.472 + 696.713 + 699.52 = $2,846 Mil.
Total Current Assets was $2,928 Mil.
Total Assets was $6,131 Mil.
Property, Plant and Equipment(Net PPE) was $303 Mil.
Depreciation, Depletion and Amortization(DDA) was $145 Mil.
Selling, General & Admin. Expense(SGA) was $2,147 Mil.
Total Current Liabilities was $1,706 Mil.
Long-Term Debt was $631 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)
=(1223.636 / 10480.897) / (1179.171 / 10195.664)
=0.11674917 / 0.11565416
=1.0095

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)
=(750.678 / 10195.664) / (748.908 / 10480.897)
=0.27917466 / 0.28408303
=0.9827

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 - (3120.173 + 311.891) / 6371.558) / (1 - (2928.237 + 303.157) / 6130.631)
=0.46134619 / 0.47291005
=0.9755

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
=10480.897 / 10195.664
=1.028

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))
=(144.622 / (144.622 + 303.157)) / (158.461 / (158.461 + 311.891))
=0.32297629 / 0.33689875
=0.9587

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)
=(2218.702 / 10480.897) / (2147.288 / 10195.664)
=0.21169009 / 0.21060796
=1.0051

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)
=((597.106 + 1797.281) / 6371.558) / ((630.806 + 1705.834) / 6130.631)
=0.37579302 / 0.38114184
=0.986

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
=(482.076 - 0.11 - 562.549) / 6371.558
=-0.0126

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 -2.53 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.90480.93870.99270.9590.96441.06070.88481.09050.97190.985
GMI 0.93560.99141.00290.98971.0021.01651.01751.01061.00960.9897
AQI 0.92071.12211.04670.9721.00221.3060.99540.94941.01191.062
SGI 1.1611.11541.16961.08061.02481.15121.13331.0481.06941.0848
DEPI 0.9391.07330.9740.95921.00310.83520.9330.97570.99140.9656
SGAI 1.04491.0010.97270.99720.98810.98120.98930.97360.98781.023
LVGI 0.93750.93520.93670.97230.85970.99941.00341.06570.96771.0637
TATA -0.0455-0.0258-0.018-0.0388-0.0229-0.0154-0.0399-0.0043-0.0418-0.0213
M-score -2.70-2.48-2.38-2.64-2.55-2.24-2.65-2.41-2.62-2.53

Henry Schein Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.00391.0010.97191.02291.07390.98990.9850.91760.93321.0095
GMI 1.01831.01421.00960.99810.99660.99390.98970.99150.9840.9827
AQI 0.97210.98361.01191.02061.02891.04991.0621.03641.01770.9755
SGI 1.06541.06441.06941.06161.06391.07971.08481.0731.05021.028
DEPI 0.95830.97650.99141.03331.04351.01520.96560.91760.95820.9587
SGAI 0.97060.97350.98781.00331.01311.02061.0231.01341.01441.0051
LVGI 0.95980.9030.96771.03511.08161.14441.06371.0110.98820.986
TATA -0.0207-0.0323-0.0418-0.0359-0.0215-0.0231-0.0213-0.0261-0.0263-0.0126
M-score -2.50-2.54-2.62-2.57-2.47-2.56-2.53-2.62-2.62-2.53
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