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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 * 0.9176+0.528 * 0.9915+0.404 * 1.0364+0.892 * 1.073+0.115 * 0.9176
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0134+4.679 * -0.0261-0.327 * 1.011
=-2.62

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
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.
Net Income was 103.447 + 132.966 + 114.776 + 116.236 = $467 Mil.
Non Operating Income was 0.12 + 0.444 + -0.484 + 1.032 = $1 Mil.
Cash Flow from Operations was -26.654 + 274.019 + 174.502 + 199.232 = $621 Mil.
Accounts Receivable was $1,117 Mil.
Revenue was 2430.159 + 2526.37 + 2348.956 + 2391.81 = $9,697 Mil.
Gross Profit was 696.713 + 699.52 + 639.647 + 669.856 = $2,706 Mil.
Total Current Assets was $2,877 Mil.
Total Assets was $5,880 Mil.
Property, Plant and Equipment(Net PPE) was $286 Mil.
Depreciation, Depletion and Amortization(DDA) was $132 Mil.
Selling, General & Admin. Expense(SGA) was $2,025 Mil.
Total Current Liabilities was $1,613 Mil.
Long-Term Debt was $542 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)
=(1099.273 / 10404.877) / (1116.502 / 9697.295)
=0.10564978 / 0.11513541
=0.9176

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)
=(764.464 / 9697.295) / (713.395 / 10404.877)
=0.27901966 / 0.28140621
=0.9915

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 - (2802.254 + 292.044) / 5939.264) / (1 - (2876.906 + 285.528) / 5880.11)
=0.47900986 / 0.46218115
=1.0364

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
=10404.877 / 9697.295
=1.073

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))
=(131.778 / (131.778 + 285.528)) / (153.251 / (153.251 + 292.044))
=0.31578266 / 0.34415612
=0.9176

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)
=(2201.894 / 10404.877) / (2025.043 / 9697.295)
=0.21162134 / 0.20882555
=1.0134

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)
=((653.718 + 1546.839) / 5939.264) / ((541.687 + 1613.261) / 5880.11)
=0.37051005 / 0.3664809
=1.011

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
=(467.425 - 1.112 - 621.099) / 5939.264
=-0.0261

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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.09051.02061.00391.0010.97191.02291.07390.98990.9850.9176
GMI 1.01061.01861.01831.01421.00960.99810.99660.99390.98970.9915
AQI 0.94940.98290.97210.98361.01191.02061.02891.04991.0621.0364
SGI 1.0481.05221.06541.06441.06941.06161.06391.07971.08481.073
DEPI 0.97570.95710.95830.97650.99141.03331.04351.01520.96560.9176
SGAI 0.97360.97160.97060.97350.98781.00331.01311.02061.0231.0134
LVGI 1.06571.05840.95980.9030.96771.03511.08161.14441.06371.011
TATA -0.0043-0.0042-0.0207-0.0323-0.0418-0.0359-0.0215-0.0231-0.0213-0.0261
M-score -2.41-2.45-2.50-2.54-2.62-2.57-2.47-2.56-2.53-2.62
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