McDonald's Beneish M-Score Historical Data
The historical data trend for McDonald's's Beneish M-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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McDonald's Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.84 |
-2.67 |
-2.68 |
-2.36 |
-2.39 |
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McDonald's Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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|
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-2.36 |
-2.27 |
-2.36 |
-2.36 |
-2.39 |
Competitive Comparison
For the Restaurants subindustry, McDonald's's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
McDonald's Beneish M-Score Distribution
For the Restaurants industry and Consumer Cyclical sector, McDonald's's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where McDonald's's Beneish M-Score falls into.
McDonald's Beneish M-Score Calculation
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 McDonald's 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 * 1.0668 | + | 0.528 * 0.9984 | + | 0.404 * 1.0087 | + | 0.892 * 1.0712 | + | 0.115 * 0.9965 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.8889 | + | 4.679 * -0.019879 | - | 0.327 * 0.9889 |
| = | -2.42 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
| This Year (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was €2,281 Mil.
Revenue was 5874.485 + 6270.591 + 5997.193 + 5508.545 = €23,651 Mil.
Gross Profit was 3350.901 + 3620.287 + 3443.713 + 3094.902 = €13,510 Mil.
Total Current Assets was €7,324 Mil.
Total Assets was €51,487 Mil.
Property, Plant and Equipment(Net PPE) was €35,233 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,835 Mil.
Selling, General, & Admin. Expense(SGA) was €2,258 Mil.
Total Current Liabilities was €6,290 Mil.
Long-Term Debt & Capital Lease Obligation was €46,043 Mil.
Net Income was 1869.763 + 2171.123 + 2132.499 + 1683.348 = €7,857 Mil.
Non Operating Income was -19.991 + 31.296 + 38.489 + -95.455 = €-46 Mil.
Cash Flow from Operations was 2282.321 + 2838.173 + 1544.456 + 2260.934 = €8,926 Mil.
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Total Receivables was €1,997 Mil.
Revenue was 5594.616 + 5930.821 + 5409.606 + 5144.365 = €22,079 Mil.
Gross Profit was 3218.002 + 3480.561 + 3123.787 + 2769.491 = €12,592 Mil.
Total Current Assets was €5,120 Mil.
Total Assets was €47,611 Mil.
Property, Plant and Equipment(Net PPE) was €34,304 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,780 Mil.
Selling, General, & Admin. Expense(SGA) was €2,371 Mil.
Total Current Liabilities was €3,589 Mil.
Long-Term Debt & Capital Lease Obligation was €45,348 Mil.
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1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Total 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) |
| = | (2281.496 / 23650.814) | / | (1996.56 / 22079.408) |
| = | 0.096466 | / | 0.090426 |
| | = | 1.0668 |
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) |
| = | (12591.841 / 22079.408) | / | (13509.803 / 23650.814) |
| = | 0.570298 | / | 0.571219 |
| | = | 0.9984 |
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 Property, Plant and Equipment to Total Assets.
| AQI | = | (1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) | / | (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1) |
| = | (1 - (7323.529 + 35232.974) / 51486.616) | / | (1 - (5120.445 + 34304.299) / 47611.206) |
| = | 0.173445 | / | 0.171944 |
| | = | 1.0087 |
4. SGI = Sales Growth Index
Ratio of Revenue 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 |
| = | 23650.814 | / | 22079.408 |
| | = | 1.0712 |
5. DEPI = Depreciation Index
Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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)) |
| = | (1780.231 / (1780.231 + 34304.299)) | / | (1835.261 / (1835.261 + 35232.974)) |
| = | 0.049335 | / | 0.04951 |
| | = | 0.9965 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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) |
| = | (2257.56 / 23650.814) | / | (2370.866 / 22079.408) |
| = | 0.095454 | / | 0.107379 |
| | = | 0.8889 |
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 in leverage
| LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
| = | ((46043.12 + 6289.703) / 51486.616) | / | ((45347.778 + 3589.182) / 47611.206) |
| = | 1.016435 | / | 1.027845 |
| | = | 0.9889 |
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 |
| = | (7856.733 - -45.661 | - | 8925.884) | / | 51486.616 |
| | = | -0.019879 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
McDonald's has a M-score of -2.42 suggests that the company is unlikely to be a manipulator.
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