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Marriott International Inc (NAS:MAR)
Beneish M-Score
-3.01 (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.

Marriott International Inc has a M-score of -3.01 suggests that the company is not a manipulator.

MAR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.83   Max: -1.83
Current: -3.01

-3.83
-1.83

During the past 13 years, the highest Beneish M-Score of Marriott International Inc was -1.83. The lowest was -3.83. And the median was -2.81.


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 Marriott International 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 * 0.927+0.528 * 0.9966+0.404 * 1.1511+0.892 * 1.052+0.115 * 0.9027
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9448+4.679 * -0.1095-0.327 * 1.173
=-3.01

* 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 $1,143 Mil.
Revenue was 3772 + 3706 + 3578 + 3689 = $14,745 Mil.
Gross Profit was 561 + 530 + 519 + 553 = $2,163 Mil.
Total Current Assets was $1,424 Mil.
Total Assets was $6,121 Mil.
Property, Plant and Equipment(Net PPE) was $1,042 Mil.
Depreciation, Depletion and Amortization(DDA) was $126 Mil.
Selling, General & Admin. Expense(SGA) was $652 Mil.
Total Current Liabilities was $3,247 Mil.
Long-Term Debt was $3,859 Mil.
Net Income was 219 + 202 + 210 + 240 = $871 Mil.
Non Operating Income was 0 + 10 + 8 + 22 = $40 Mil.
Cash Flow from Operations was 333 + 350 + 328 + 490 = $1,501 Mil.
Accounts Receivable was $1,172 Mil.
Revenue was 3513 + 3559 + 3460 + 3484 = $14,016 Mil.
Gross Profit was 521 + 503 + 503 + 522 = $2,049 Mil.
Total Current Assets was $1,828 Mil.
Total Assets was $6,803 Mil.
Property, Plant and Equipment(Net PPE) was $1,446 Mil.
Depreciation, Depletion and Amortization(DDA) was $156 Mil.
Selling, General & Admin. Expense(SGA) was $656 Mil.
Total Current Liabilities was $3,030 Mil.
Long-Term Debt was $3,703 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)
=(1143 / 14745) / (1172 / 14016)
=0.0775178 / 0.08361872
=0.927

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)
=(530 / 14016) / (561 / 14745)
=0.14619007 / 0.14669379
=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 - (1424 + 1042) / 6121) / (1 - (1828 + 1446) / 6803)
=0.59712465 / 0.51874173
=1.1511

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
=14745 / 14016
=1.052

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))
=(156 / (156 + 1446)) / (126 / (126 + 1042))
=0.09737828 / 0.10787671
=0.9027

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)
=(652 / 14745) / (656 / 14016)
=0.04421838 / 0.04680365
=0.9448

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)
=((3859 + 3247) / 6121) / ((3703 + 3030) / 6803)
=1.16092142 / 0.98971042
=1.173

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
=(871 - 40 - 1501) / 6121
=-0.1095

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.

Marriott International Inc has a M-score of -3.01 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.

Marriott International Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.00581.01380.7891.10181.04440.88541.22490.97180.94290.955
GMI 0.81580.92191.19491.1130.89741.21590.77341.00070.94080.9724
AQI 1.00070.96161.00761.02981.01941.20990.90730.93911.11751.0954
SGI 1.05281.06830.99150.8471.07181.05350.95921.08211.07921.05
DEPI 1.05521.02481.10950.97290.99770.95321.46041.13220.82630.7734
SGAI 0.85021.09031.03171.06161.0080.91510.89421.04020.84110.9162
LVGI 1.13021.25380.97640.92121.01421.28051.12941.02521.10751.2196
TATA -0.0497-0.0198-0.035-0.1312-0.079-0.1474-0.0705-0.0765-0.071-0.101
M-score -2.77-2.65-2.72-3.05-2.80-3.11-2.77-2.81-2.81-3.01

Marriott International Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.97180.9191.02951.04910.94291.0451.03981.04230.9550.927
GMI 1.00070.99680.97210.95160.94080.92330.94060.96650.97240.9966
AQI 0.93911.041.01951.00691.11750.97921.01591.07711.09541.1511
SGI 1.08211.04281.02061.01011.07921.08361.0811.06561.051.052
DEPI 1.13221.19181.11581.3770.82630.76340.61020.56340.77340.9027
SGAI 1.04020.98160.94750.91840.84110.87230.89080.86520.91620.9448
LVGI 1.02521.03621.03261.07191.10751.11971.21061.27971.21961.173
TATA -0.0765-0.0821-0.0755-0.085-0.071-0.0781-0.0812-0.0873-0.101-0.1095
M-score -2.81-2.87-2.78-2.81-2.81-2.82-2.87-2.90-3.01-3.01
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