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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 Beneish M-Score Range Over the Past 10 Years
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 * 1.0423+0.528 * 0.9731+0.404 * 1.0771+0.892 * 1.0656+0.115 * 0.6471
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8941+4.679 * -0.0873-0.327 * 1.2797
=-2.89

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $1,144 Mil.
Revenue was 3578 + 3689 + 3513 + 3559 = $14,339 Mil.
Gross Profit was 519 + 553 + 521 + 503 = $2,096 Mil.
Total Current Assets was $1,723 Mil.
Total Assets was $6,153 Mil.
Property, Plant and Equipment(Net PPE) was $985 Mil.
Depreciation, Depletion and Amortization(DDA) was $139 Mil.
Selling, General & Admin. Expense(SGA) was $626 Mil.
Total Current Liabilities was $3,509 Mil.
Long-Term Debt was $3,689 Mil.
Net Income was 210 + 240 + 207 + 197 = $854 Mil.
Non Operating Income was 8 + 22 + 3 + 4 = $37 Mil.
Cash Flow from Operations was 328 + 490 + 262 + 274 = $1,354 Mil.
Accounts Receivable was $1,030 Mil.
Revenue was 3460 + 3484 + 3293 + 3219 = $13,456 Mil.
Gross Profit was 503 + 522 + 438 + 451 = $1,914 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 $657 Mil.
Total Current Liabilities was $2,738 Mil.
Long-Term Debt was $3,521 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)
=(1144 / 14339) / (1030 / 13456)
=0.07978241 / 0.07654578
=1.0423

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)
=(553 / 13456) / (519 / 14339)
=0.14224138 / 0.14617477
=0.9731

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 - (1723 + 985) / 6153) / (1 - (1552 + 1736) / 6847)
=0.55988948 / 0.51978969
=1.0771

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
=14339 / 13456
=1.0656

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))
=(151 / (151 + 1736)) / (139 / (139 + 985))
=0.0800212 / 0.12366548
=0.6471

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)
=(626 / 14339) / (657 / 13456)
=0.04365716 / 0.0488258
=0.8941

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)
=((3689 + 3509) / 6153) / ((3521 + 2738) / 6847)
=1.16983585 / 0.91412297
=1.2797

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
=(854 - 37 - 1354) / 6153
=-0.0873

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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.13970.98251.00010.7891.10181.04440.88541.22490.97180.9429
GMI 0.82270.88720.97661.19491.1130.89740.970.96940.97230.9683
AQI 0.93951.00070.96161.00761.02981.01941.20990.90730.93911.0299
SGI 1.1021.07781.0830.99150.8471.07181.05350.95921.08211.0792
DEPI 0.46541.05521.02481.10950.97290.99770.95322.02310.81730.8263
SGAI 1.16760.80431.07071.03171.06161.0080.91510.89420.92990.9409
LVGI 1.21421.13021.25380.97640.92121.01421.28051.12941.02521.1078
TATA -0.0417-0.0515-0.0217-0.0373-0.1486-0.079-0.1474-0.0705-0.0765-0.0706
M-score -2.73-2.73-2.63-2.74-3.13-2.80-3.24-2.60-2.85-2.84

Marriott International Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.98861.01940.97180.9191.02951.04910.94291.0451.03981.0423
GMI 0.98391.17530.97230.97920.97060.96470.96830.9450.95470.9731
AQI 0.96210.92130.93911.041.01951.00691.02990.97921.01591.0771
SGI 1.08371.13381.08211.04281.02061.01011.07921.08361.0811.0656
DEPI 1.91481.62730.81730.7250.63740.74210.82630.83020.67590.6471
SGAI 0.82440.86160.92990.91690.93550.96080.94090.95640.950.8941
LVGI 1.08131.04391.02521.03621.03261.07191.10781.11971.21061.2797
TATA -0.0917-0.0522-0.0765-0.0821-0.0755-0.085-0.0706-0.0781-0.0812-0.0873
M-score -2.76-2.44-2.85-2.92-2.84-2.89-2.84-2.82-2.87-2.89
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