Tenet Healthcare (MEX:THC) Beneish M-Score : -2.83 (As of Mar. 05, 2025)

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What is Tenet Healthcare Beneish M-Score?

The zones of discrimination for M-Score is as such:

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.

Good Sign:

Beneish M-Score -2.83 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Tenet Healthcare's Beneish M-Score or its related term are showing as below:

MEX:THC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.89 Med: -2.66 Max: -2.24
Current: -2.83

During the past 13 years, the highest Beneish M-Score of Tenet Healthcare was -2.24. The lowest was -2.89. And the median was -2.66.

Tenet Healthcare Beneish M-Score Historical Data

The historical data trend for Tenet Healthcare'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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Tenet Healthcare Beneish M-Score Chart

Tenet Healthcare Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.83

-2.24

-2.49

-2.80

-2.83

Tenet Healthcare Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.80	-2.79	-2.85	-3.06	-2.83

Competitive Comparison of Tenet Healthcare's Beneish M-Score

For the Medical Care Facilities subindustry, Tenet Healthcare'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.

Tenet Healthcare's Beneish M-Score Distribution in the Healthcare Providers & Services Industry

For the Healthcare Providers & Services industry and Healthcare sector, Tenet Healthcare's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Tenet Healthcare's Beneish M-Score falls into.

Tenet Healthcare 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 Tenet Healthcare for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0208

0.528 * 1.0024

0.404 * 1.0026

0.892 * 1.0897

0.115 * 1.1503

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9555

4.679 * -0.057898

0.327 * 0.8663

-2.58

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was MXN75,393 Mil.
Revenue was 105780.11 + 100853.717 + 93487.486 + 89088.697 = MXN389,210 Mil.
Gross Profit was 86384.309 + 83506.562 + 76852.832 + 73687.372 = MXN320,431 Mil.
Total Current Assets was MXN160,213 Mil.
Total Assets was MXN603,481 Mil.
Property, Plant and Equipment(Net PPE) was MXN147,783 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN15,403 Mil.
Selling, General, & Admin. Expense(SGA) was MXN165,583 Mil.
Total Current Liabilities was MXN89,888 Mil.
Long-Term Debt & Capital Lease Obligation was MXN272,813 Mil.
Net Income was 6632.113 + 9293.822 + 4744.907 + 35698.545 = MXN56,369 Mil.
Non Operating Income was 1689.312 + 8210.855 + 2088.492 + 42237.469 = MXN54,226 Mil.
Cash Flow from Operations was -6903.237 + 20576.364 + 13685.117 + 9725.405 = MXN37,084 Mil.

Total Receivables was MXN67,778 Mil.
Revenue was 91304.48 + 88244.132 + 87125.3 + 90503.525 = MXN357,177 Mil.
Gross Profit was 75501.455 + 72967.76 + 71850.085 + 74443.25 = MXN294,763 Mil.
Total Current Assets was MXN121,654 Mil.
Total Assets was MXN480,575 Mil.
Property, Plant and Equipment(Net PPE) was MXN124,235 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN15,131 Mil.
Selling, General, & Admin. Expense(SGA) was MXN159,024 Mil.
Total Current Liabilities was MXN80,797 Mil.
Long-Term Debt & Capital Lease Obligation was MXN252,611 Mil.

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)
	=	(75393.355 / 389210.01)	/	(67778.172 / 357177.437)
	=	0.193709	/	0.189761
	=	1.0208

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)
	=	(294762.55 / 357177.437)	/	(320431.075 / 389210.01)
	=	0.825255	/	0.823286
	=	1.0024

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 - (160213.487 + 147783.49) / 603480.535)	/	(1 - (121654.435 + 124234.521) / 480574.909)
	=	0.489632	/	0.488344
	=	1.0026

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
	=	389210.01	/	357177.437
	=	1.0897

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))
	=	(15131.347 / (15131.347 + 124234.521))	/	(15403.025 / (15403.025 + 147783.49))
	=	0.108573	/	0.094389
	=	1.1503

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)
	=	(165582.812 / 389210.01)	/	(159024.082 / 357177.437)
	=	0.425433	/	0.445224
	=	0.9555

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)
	=	((272813.412 + 89888.067) / 603480.535)	/	((252610.759 + 80797.42) / 480574.909)
	=	0.601016	/	0.693769
	=	0.8663

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
	=	(56369.387 - 54226.128	-	37083.649)	/	603480.535
	=	-0.057898

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.

Tenet Healthcare has a M-score of -2.58 suggests that the company is unlikely to be a manipulator.

Tenet Healthcare Beneish M-Score Related Terms

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Tenet Healthcare Business Description

Industry

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Address

14201 Dallas Parkway, Dallas, TX, USA, 75254

Website

https://www.tenethealth.com

Tenet Healthcare is a Dallas-based healthcare services organization. It operates a collection of hospitals (about 50 as of July 2024) and over 500 ambulatory surgery centers and other outpatient facilities across the U.S., primarily in the South. Through its Conifer segment, Tenet also provides revenue cycle management solutions.