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Marriott International Inc (NAS:MAR)
Beneish M-Score
-2.89 (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 -2.89 suggests that the company is not a manipulator.

MAR' s 10-Year Beneish M-Score Range
Min: -3.85   Max: -1.83
Current: -2.89

-3.85
-1.83

During the past 13 years, the highest Beneish M-Score of Marriott International Inc was -1.83. The lowest was -3.85. And the median was -2.82.


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 * 1.0491+0.528 * 0.9906+0.404 * 1.0069+0.892 * 1.0101+0.115 * 0.7421
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0734+4.679 * -0.085-0.327 * 1.0719
=-2.89

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $1,030 Mil.
Revenue was 3460 + 3484 + 3293 + 3219 = $13,456 Mil.
Gross Profit was 503 + 522 + 438 + 401 = $1,864 Mil.
Total Current Assets was $1,552 Mil.
Total Assets was $6,847 Mil.
Property, Plant and Equipment(Net PPE) was $1,736 Mil.
Depreciation, Depletion and Amortization(DDA) was $151 Mil.
Selling, General & Admin. Expense(SGA) was $734 Mil.
Total Current Liabilities was $2,738 Mil.
Long-Term Debt was $3,521 Mil.
Net Income was 192 + 192 + 172 + 151 = $707 Mil.
Non Operating Income was 13 + -5 + 2 + -6 = $4 Mil.
Cash Flow from Operations was 281 + 487 + 182 + 335 = $1,285 Mil.
Accounts Receivable was $972 Mil.
Revenue was 3160 + 3263 + 3142 + 3757 = $13,322 Mil.
Gross Profit was 426 + 472 + 415 + 515 = $1,828 Mil.
Total Current Assets was $1,646 Mil.
Total Assets was $6,480 Mil.
Property, Plant and Equipment(Net PPE) was $1,489 Mil.
Depreciation, Depletion and Amortization(DDA) was $94 Mil.
Selling, General & Admin. Expense(SGA) was $677 Mil.
Total Current Liabilities was $2,422 Mil.
Long-Term Debt was $3,104 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)
=(1030 / 13456) / (972 / 13322)
=0.07654578 / 0.07296202
=1.0491

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)
=(522 / 13322) / (503 / 13456)
=0.13721663 / 0.13852556
=0.9906

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 - (1552 + 1736) / 6847) / (1 - (1646 + 1489) / 6480)
=0.51978969 / 0.5162037
=1.0069

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
=13456 / 13322
=1.0101

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))
=(94 / (94 + 1489)) / (151 / (151 + 1736))
=0.05938092 / 0.0800212
=0.7421

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)
=(734 / 13456) / (677 / 13322)
=0.05454816 / 0.0508182
=1.0734

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)
=((3521 + 2738) / 6847) / ((3104 + 2422) / 6480)
=0.91412297 / 0.85277778
=1.0719

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
=(707 - 4 - 1285) / 6847
=-0.085

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 -2.89 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.97721.13970.98251.00010.7891.10181.04440.88541.22490.9718
GMI 0.93020.82270.88720.97661.19491.1130.89740.970.96941.0007
AQI 0.94690.93951.00070.96161.00761.02981.01941.20990.90730.9391
SGI 1.12041.1021.07781.0830.99150.8471.07181.05350.95921.0821
DEPI 0.92130.46541.05521.02481.10950.97290.99770.95322.02310.8173
SGAI 1.03591.16760.80431.07071.03171.06161.0080.91510.89421.0402
LVGI 0.95261.21421.13021.25380.97640.92121.01421.28051.12941.0252
TATA -0.049-0.0417-0.0515-0.0217-0.0373-0.1486-0.079-0.1474-0.0705-0.0765
M-score -2.68-2.73-2.73-2.63-2.74-3.13-2.80-3.24-2.60-2.85

Marriott International Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.94480.86841.22491.21990.98861.01940.97180.9191.02951.0491
GMI 0.95310.63190.96940.96230.98391.17531.00071.00740.99770.9906
AQI 1.09471.10120.90730.94120.96210.92130.93911.041.01951.0069
SGI 0.9880.95790.95921.02591.08371.13381.08211.04281.02061.0101
DEPI 1.01311.08312.02311.80771.91481.62730.81730.7250.63740.7421
SGAI 0.91690.85210.89420.8720.82440.86161.04021.02851.04941.0734
LVGI 1.30991.20831.12941.12521.08131.04391.02521.03621.03261.0719
TATA -0.132-0.0871-0.0705-0.0629-0.0917-0.0522-0.0765-0.0821-0.0755-0.085
M-score -3.23-3.23-2.60-2.52-2.76-2.44-2.85-2.93-2.84-2.89
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