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Henry Schein Inc (NAS:HSIC)
Beneish M-Score
-2.40 (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 -2.40 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: -2.4

-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 -2.53.


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 * 1.1093+0.528 * 0.9946+0.404 * 0.9505+0.892 * 1.0456+0.115 * 1.0291
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9978+4.679 * -0.0039-0.327 * 1.0851
=-2.40

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $1,275 Mil.
Revenue was 2712.956 + 2850.918 + 2685.835 + 2629.32 = $10,879 Mil.
Gross Profit was 779.305 + 799.278 + 748.908 + 750.678 = $3,078 Mil.
Total Current Assets was $3,271 Mil.
Total Assets was $6,601 Mil.
Property, Plant and Equipment(Net PPE) was $324 Mil.
Depreciation, Depletion and Amortization(DDA) was $163 Mil.
Selling, General & Admin. Expense(SGA) was $2,297 Mil.
Total Current Liabilities was $1,988 Mil.
Long-Term Debt was $666 Mil.
Net Income was 113.752 + 129.948 + 127.735 + 117.928 = $489 Mil.
Non Operating Income was 3.137 + 0.193 + -0.277 + -0.177 = $3 Mil.
Cash Flow from Operations was -101.512 + 298.311 + 107.428 + 207.756 = $512 Mil.
Accounts Receivable was $1,099 Mil.
Revenue was 2463.646 + 2702.096 + 2623.729 + 2615.406 = $10,405 Mil.
Gross Profit was 713.395 + 764.464 + 721.666 + 728.472 = $2,928 Mil.
Total Current Assets was $2,802 Mil.
Total Assets was $5,939 Mil.
Property, Plant and Equipment(Net PPE) was $292 Mil.
Depreciation, Depletion and Amortization(DDA) was $153 Mil.
Selling, General & Admin. Expense(SGA) was $2,202 Mil.
Total Current Liabilities was $1,547 Mil.
Long-Term Debt was $654 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)
=(1274.95 / 10879.029) / (1099.273 / 10404.877)
=0.11719336 / 0.10564978
=1.1093

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)
=(2927.997 / 10404.877) / (3078.169 / 10879.029)
=0.28140621 / 0.2829452
=0.9946

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 - (3271.003 + 324.283) / 6600.57) / (1 - (2802.254 + 292.044) / 5939.264)
=0.45530674 / 0.47900986
=0.9505

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
=10879.029 / 10404.877
=1.0456

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))
=(153.251 / (153.251 + 292.044)) / (162.945 / (162.945 + 324.283))
=0.34415612 / 0.33443275
=1.0291

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)
=(2297.243 / 10879.029) / (2201.894 / 10404.877)
=0.2111625 / 0.21162134
=0.9978

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)
=((666.283 + 1987.504) / 6600.57) / ((653.718 + 1546.839) / 5939.264)
=0.40205422 / 0.37051005
=1.0851

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
=(489.363 - 2.876 - 511.983) / 6600.57
=-0.0039

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 -2.40 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 0.9421.01070.95940.96661.06070.88481.09050.97190.9851.0642
GMI 0.98910.98960.98491.00521.01651.01751.01061.00960.98970.9906
AQI 1.12211.04670.9721.00221.3060.99540.94941.01191.0620.957
SGI 1.11161.14891.08021.02241.15121.13331.0481.06941.08481.0249
DEPI 1.07330.9740.95921.00310.83520.9330.97570.99140.96560.9853
SGAI 1.02060.98661.0020.98350.98120.98930.97360.98781.0230.9967
LVGI 0.93520.93670.97230.85970.99941.00341.06570.96771.06371.0607
TATA -0.0256-0.018-0.0377-0.0229-0.014-0.0399-0.0043-0.0418-0.0213-0.0165
M-score -2.48-2.39-2.64-2.55-2.24-2.65-2.41-2.62-2.53-2.52

Henry Schein Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.97191.02291.07390.98990.9850.91760.93321.00951.06421.1093
GMI 1.00960.99810.99660.99390.98970.99150.9840.98270.99060.9946
AQI 1.01191.02061.02891.04991.0621.03641.01770.97550.9570.9505
SGI 1.06941.06161.06391.07971.08481.0731.05021.0281.02491.0456
DEPI 0.99141.03331.04351.01520.96560.91760.95820.95870.98531.0291
SGAI 0.98781.00331.01311.02061.0231.01341.01441.00510.99670.9978
LVGI 0.96771.03511.08161.14441.06371.0110.98820.9861.06071.0851
TATA -0.0418-0.0359-0.0215-0.0231-0.0213-0.0261-0.0263-0.0126-0.0165-0.0039
M-score -2.62-2.57-2.47-2.56-2.53-2.62-2.62-2.53-2.52-2.40
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