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Henry Schein Inc (NAS:HSIC)
Beneish M-Score
-2.47 (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 -2.47 suggests that the company is not a manipulator.

HSIC' s 10-Year Beneish M-Score Range
Min: -2.84   Max: -1.31
Current: -2.47

-2.84
-1.31

During the past 13 years, the highest Beneish M-Score of Henry Schein Inc was -1.31. The lowest was -2.84. 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 * 1.0739+0.528 * 0.9966+0.404 * 1.0289+0.892 * 1.0639+0.115 * 1.0435
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0131+4.679 * -0.0215-0.327 * 1.0816
=-2.47

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
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.
Net Income was 116.236 + 102.099 + 124.268 + 107.378 = $450 Mil.
Non Operating Income was 1.032 + 3.58 + 1.466 + 1.263 = $7 Mil.
Cash Flow from Operations was 199.232 + -55.249 + 274.628 + 152.796 = $571 Mil.
Accounts Receivable was $1,040 Mil.
Revenue was 2391.81 + 2293.511 + 2408.438 + 2231.058 = $9,325 Mil.
Gross Profit was 669.856 + 646.991 + 663.495 + 609.044 = $2,589 Mil.
Total Current Assets was $2,573 Mil.
Total Assets was $5,165 Mil.
Property, Plant and Equipment(Net PPE) was $257 Mil.
Depreciation, Depletion and Amortization(DDA) was $128 Mil.
Selling, General & Admin. Expense(SGA) was $1,929 Mil.
Total Current Liabilities was $1,314 Mil.
Long-Term Debt was $447 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)
=(1188.143 / 9920.891) / (1039.914 / 9324.817)
=0.11976172 / 0.11152112
=1.0739

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)
=(696.713 / 9324.817) / (728.472 / 9920.891)
=0.27768759 / 0.27863949
=0.9966

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 - (2912.003 + 292.972) / 5991.754) / (1 - (2573.266 + 256.775) / 5164.506)
=0.46510237 / 0.45202097
=1.0289

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
=9920.891 / 9324.817
=1.0639

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))
=(128.169 / (128.169 + 256.775)) / (137.288 / (137.288 + 292.972))
=0.33295492 / 0.31908149
=1.0435

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)
=(2078.88 / 9920.891) / (1928.728 / 9324.817)
=0.2095457 / 0.20683816
=1.0131

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)
=((665.909 + 1543.901) / 5991.754) / ((446.709 + 1314.335) / 5164.506)
=0.36880853 / 0.34098983
=1.0816

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
=(449.981 - 7.341 - 571.407) / 5991.754
=-0.0215

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 -2.47 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.910.92230.97521.09051.02061.00391.0010.97191.02291.0739
GMI 1.01611.01291.01241.01061.01861.01831.01421.00960.99810.9966
AQI 0.97681.00270.99030.94940.98290.97210.98361.01191.02061.0289
SGI 1.12541.09471.08011.0481.05221.06541.06441.06941.06161.0639
DEPI 0.89230.89750.93250.97570.95710.95830.97650.99141.03331.0435
SGAI 0.98250.98190.97840.97360.97160.97060.97350.98781.00331.0131
LVGI 0.97711.07781.1251.06571.05840.95980.9030.96771.03511.0816
TATA -0.0184-0.0258-0.0213-0.0043-0.0042-0.0207-0.0323-0.0418-0.0359-0.0215
M-score -2.54-2.61-2.57-2.41-2.45-2.50-2.54-2.62-2.57-2.47
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