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Henry Schein Inc (NAS:HSIC)
Beneish M-Score
-2.62 (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 -2.62 suggests that the company is not a manipulator.

HSIC' s 10-Year Beneish M-Score Range
Min: -2.91   Max: -1.38
Current: -2.62

-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 -2.48.


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 * 0.9332+0.528 * 0.984+0.404 * 1.0177+0.892 * 1.0502+0.115 * 0.9582
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0144+4.679 * -0.0263-0.327 * 0.9882
=-2.62

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
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.
Net Income was 117.928 + 103.447 + 132.966 + 114.776 = $469 Mil.
Non Operating Income was -0.177 + 0.12 + 0.444 + -0.484 = $-0 Mil.
Cash Flow from Operations was 207.756 + -26.654 + 274.019 + 174.502 = $630 Mil.
Accounts Receivable was $1,188 Mil.
Revenue was 2615.406 + 2430.159 + 2526.37 + 2348.956 = $9,921 Mil.
Gross Profit was 728.472 + 696.713 + 699.52 + 639.647 = $2,764 Mil.
Total Current Assets was $2,912 Mil.
Total Assets was $5,992 Mil.
Property, Plant and Equipment(Net PPE) was $293 Mil.
Depreciation, Depletion and Amortization(DDA) was $137 Mil.
Selling, General & Admin. Expense(SGA) was $2,079 Mil.
Total Current Liabilities was $1,544 Mil.
Long-Term Debt was $666 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)
=(1164.38 / 10418.791) / (1188.143 / 9920.891)
=0.11175769 / 0.11976172
=0.9332

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)
=(713.395 / 9920.891) / (750.678 / 10418.791)
=0.27863949 / 0.28316174
=0.984

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 - (2905.337 + 310.333) / 6105.626) / (1 - (2912.003 + 292.972) / 5991.754)
=0.47332673 / 0.46510237
=1.0177

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
=10418.791 / 9920.891
=1.0502

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))
=(137.288 / (137.288 + 292.972)) / (154.924 / (154.924 + 310.333))
=0.31908149 / 0.33298586
=0.9582

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)
=(2214.692 / 10418.791) / (2078.88 / 9920.891)
=0.21256708 / 0.2095457
=1.0144

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)
=((588.523 + 1636.742) / 6105.626) / ((665.909 + 1543.901) / 5991.754)
=0.3644614 / 0.36880853
=0.9882

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
=(469.117 - -0.097 - 629.623) / 6105.626
=-0.0263

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 -2.62 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.02061.00391.0010.97191.02291.07390.98990.9850.91760.9332
GMI 1.01861.01831.01421.00960.99810.99660.99390.98970.99150.984
AQI 0.98290.97210.98361.01191.02061.02891.04991.0621.03641.0177
SGI 1.05221.06541.06441.06941.06161.06391.07971.08481.0731.0502
DEPI 0.95710.95830.97650.99141.03331.04351.01520.96560.91760.9582
SGAI 0.97160.97060.97350.98781.00331.01311.02061.0231.01341.0144
LVGI 1.05840.95980.9030.96771.03511.08161.14441.06371.0110.9882
TATA -0.0042-0.0207-0.0323-0.0418-0.0359-0.0215-0.0231-0.0213-0.0261-0.0263
M-score -2.45-2.50-2.54-2.62-2.57-2.47-2.56-2.53-2.62-2.62
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