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Marriott International Inc (NAS:MAR)
Beneish M-Score
-2.84 (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 -2.84 suggests that the company is not a manipulator.

MAR' s 10-Year Beneish M-Score Range
Min: -3.58   Max: -1.96
Current: -2.84

-3.58
-1.96

During the past 13 years, the highest Beneish M-Score of Marriott International Inc was -1.96. The lowest was -3.58. And the median was -2.80.


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 * 0.9429+0.528 * 0.9683+0.404 * 1.0299+0.892 * 1.0792+0.115 * 0.8263
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9409+4.679 * -0.0706-0.327 * 1.1078
=-2.84

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $1,100 Mil.
Revenue was 3559 + 3460 + 3484 + 3293 = $13,796 Mil.
Gross Profit was 503 + 503 + 522 + 438 = $1,966 Mil.
Total Current Assets was $1,921 Mil.
Total Assets was $6,865 Mil.
Property, Plant and Equipment(Net PPE) was $1,460 Mil.
Depreciation, Depletion and Amortization(DDA) was $148 Mil.
Selling, General & Admin. Expense(SGA) was $659 Mil.
Total Current Liabilities was $3,060 Mil.
Long-Term Debt was $3,457 Mil.
Net Income was 197 + 192 + 192 + 172 = $753 Mil.
Non Operating Income was 4 + 13 + -5 + 2 = $14 Mil.
Cash Flow from Operations was 274 + 281 + 487 + 182 = $1,224 Mil.
Accounts Receivable was $1,081 Mil.
Revenue was 3219 + 3160 + 3263 + 3142 = $12,784 Mil.
Gross Profit was 451 + 426 + 472 + 415 = $1,764 Mil.
Total Current Assets was $1,903 Mil.
Total Assets was $6,794 Mil.
Property, Plant and Equipment(Net PPE) was $1,543 Mil.
Depreciation, Depletion and Amortization(DDA) was $127 Mil.
Selling, General & Admin. Expense(SGA) was $649 Mil.
Total Current Liabilities was $2,675 Mil.
Long-Term Debt was $3,147 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)
=(1100 / 13796) / (1081 / 12784)
=0.07973326 / 0.08455882
=0.9429

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)
=(503 / 12784) / (503 / 13796)
=0.13798498 / 0.14250507
=0.9683

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 - (1921 + 1460) / 6865) / (1 - (1903 + 1543) / 6794)
=0.50750182 / 0.49278775
=1.0299

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
=13796 / 12784
=1.0792

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))
=(127 / (127 + 1543)) / (148 / (148 + 1460))
=0.0760479 / 0.0920398
=0.8263

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)
=(659 / 13796) / (649 / 12784)
=0.04776747 / 0.05076658
=0.9409

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)
=((3457 + 3060) / 6865) / ((3147 + 2675) / 6794)
=0.94930808 / 0.85693259
=1.1078

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
=(753 - 14 - 1224) / 6865
=-0.0706

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 -2.84 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.86841.22491.21990.98861.01940.97180.9191.02951.04910.9429
GMI 0.63190.96940.96230.98391.17530.97230.97920.97060.96470.9683
AQI 1.10120.90730.94120.96210.92130.93911.041.01951.00691.0299
SGI 0.95790.95921.02591.08371.13381.08211.04281.02061.01011.0792
DEPI 1.08312.02311.80771.91481.62730.81730.7250.63740.74210.8263
SGAI 0.85210.89420.8720.82440.86160.92990.91690.93550.96080.9409
LVGI 1.20831.12941.12521.08131.04391.02521.03621.03261.07191.1078
TATA -0.0871-0.0705-0.0629-0.0917-0.0522-0.0765-0.0821-0.0755-0.085-0.0706
M-score -3.23-2.60-2.52-2.76-2.44-2.85-2.92-2.84-2.89-2.84
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