SONC has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
Sonic Corp has a M-score of -2.94 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of Sonic Corp was -0.96. The lowest was -8.32. And the median was -3.16.
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 Sonic Corp 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 * 1.2586||+||0.528 * 0.9793||+||0.404 * 0.8729||+||0.892 * 1.0237||+||0.115 * 1.0638|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0181||+||4.679 * -0.1415||-||0.327 * 0.99|
|This Year (May14) TTM:||Last Year (May13) TTM:|
|Accounts Receivable was $43.4 Mil.|
Revenue was 152.187 + 109.741 + 126.652 + 158.802 = $547.4 Mil.
Gross Profit was 60.47 + 38.23 + 45.269 + 61.527 = $205.5 Mil.
Total Current Assets was $99.1 Mil.
Total Assets was $641.4 Mil.
Property, Plant and Equipment(Net PPE) was $428.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $41.0 Mil.
Selling, General & Admin. Expense(SGA) was $68.0 Mil.
Total Current Liabilities was $71.9 Mil.
Long-Term Debt was $453.7 Mil.
Net Income was 16.776 + 4.107 + 8.208 + 12.198 = $41.3 Mil.
Non Operating Income was 0 + 0 + 0 + 28.998 = $29.0 Mil.
Cash Flow from Operations was 35.138 + 7.857 + 28.063 + 31.989 = $103.0 Mil.
|Accounts Receivable was $33.7 Mil.
Revenue was 146.634 + 111.141 + 126.008 + 150.94 = $534.7 Mil.
Gross Profit was 56.578 + 37.336 + 43.935 + 58.743 = $196.6 Mil.
Total Current Assets was $110.9 Mil.
Total Assets was $642.5 Mil.
Property, Plant and Equipment(Net PPE) was $401.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $41.1 Mil.
Selling, General & Admin. Expense(SGA) was $65.3 Mil.
Total Current Liabilities was $71.9 Mil.
Long-Term Debt was $460.0 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(43.381 / 547.382)||/||(33.67 / 534.723)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(38.23 / 534.723)||/||(60.47 / 547.382)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (99.135 + 428.432) / 641.359)||/||(1 - (110.948 + 400.968) / 642.504)|
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.
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))|
|=||(41.097 / (41.097 + 400.968))||/||(41.027 / (41.027 + 428.432))|
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)|
|=||(68.012 / 547.382)||/||(65.261 / 534.723)|
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)|
|=||((453.713 + 71.937) / 641.359)||/||((460.039 + 71.865) / 642.504)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(41.289 - 28.998||-||103.047)||/||641.359|
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.
Sonic Corp has a M-score of -2.94 suggests that the company will not be a manipulator.
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
Sonic Corp Annual Data
Sonic Corp Quarterly Data