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Marriott International Beneish M-Score

: -2.08 (As of Today)
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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 -2.08 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MAR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.82   Med: -2.72   Max: -1.71
Current: -2.08

During the past 13 years, the highest Beneish M-Score of Marriott International was -1.71. The lowest was -3.82. And the median was -2.72.


Marriott International Beneish M-Score Historical Data

The historical data trend for Marriott International'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.

* Premium members only.

Marriott International Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.64 -2.52 -2.42 -2.81 -2.40

Marriott International Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.97 -2.40 -2.40 -2.05 -2.08

Competitive Comparison

For the Lodging subindustry, Marriott International'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.

   

Marriott International Beneish M-Score Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Marriott International's Beneish M-Score distribution charts can be found below:

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



Marriott International 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 Marriott International 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 * 0.6513+0.528 * 0.9106+0.404 * 0.9671+0.892 * 1.8127+0.115 * 1.3091
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6694+4.679 * -0.0082-0.327 * 0.9883
=-2.08

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $2,282 Mil.
Revenue was 5338 + 4199 + 4446 + 3946 = $17,929 Mil.
Gross Profit was 1230 + 823 + 902 + 825 = $3,780 Mil.
Total Current Assets was $3,106 Mil.
Total Assets was $24,615 Mil.
Property, Plant and Equipment(Net PPE) was $2,534 Mil.
Depreciation, Depletion and Amortization(DDA) was $298 Mil.
Selling, General, & Admin. Expense(SGA) was $864 Mil.
Total Current Liabilities was $6,853 Mil.
Long-Term Debt & Capital Lease Obligation was $9,278 Mil.
Net Income was 678 + 377 + 468 + 220 = $1,743 Mil.
Non Operating Income was 17 + -3 + 4 + -172 = $-154 Mil.
Cash Flow from Operations was 650 + 398 + 432 + 619 = $2,099 Mil.
Total Receivables was $1,933 Mil.
Revenue was 3149 + 2316 + 2172 + 2254 = $9,891 Mil.
Gross Profit was 726 + 348 + 388 + 437 = $1,899 Mil.
Total Current Assets was $2,799 Mil.
Total Assets was $24,504 Mil.
Property, Plant and Equipment(Net PPE) was $2,172 Mil.
Depreciation, Depletion and Amortization(DDA) was $347 Mil.
Selling, General, & Admin. Expense(SGA) was $712 Mil.
Total Current Liabilities was $6,121 Mil.
Long-Term Debt & Capital Lease Obligation was $10,128 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)
=(2282 / 17929) / (1933 / 9891)
=0.12727983 / 0.19543019
=0.6513

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)
=(1899 / 9891) / (3780 / 17929)
=0.19199272 / 0.21083161
=0.9106

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 - (3106 + 2534) / 24615) / (1 - (2799 + 2172) / 24504)
=0.77087142 / 0.79713516
=0.9671

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
=17929 / 9891
=1.8127

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))
=(347 / (347 + 2172)) / (298 / (298 + 2534))
=0.13775308 / 0.10522599
=1.3091

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)
=(864 / 17929) / (712 / 9891)
=0.04819008 / 0.07198463
=0.6694

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)
=((9278 + 6853) / 24615) / ((10128 + 6121) / 24504)
=0.65533211 / 0.66311623
=0.9883

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
=(1743 - -154 - 2099) / 24615
=-0.0082

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.

Marriott International has a M-score of -2.08 suggests that the company is unlikely to be a manipulator.


Marriott International Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Marriott International's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Marriott International Business Description

Marriott International logo
Address
10400 Fernwood Road, Bethesda, MD, USA, 20817
Marriott operates nearly 1.5 million rooms across roughly 30 brands. Luxury represents 10% of total rooms, while full service, limited service, and time-shares are 43%, 46%, and 2% of all units, respectively. Marriott, Courtyard, and Sheraton are the largest brands, while Autograph, Tribute, Moxy, Aloft, and Element are newer lifestyle brands. Managed and franchised represent 97% of total rooms. North America makes up two thirds of total rooms. Managed, franchise, and incentive fees represent the vast majority of revenue and profitability for the company.
Executives
Goren Isabella D director C/O LYONDELLBASELL INDUSTRIES N V DELFTSEPLEIN 27E ROTTERDAM P7 3013AA
Breland Benjamin T. officer: EVP & Chief HR Officer 10400 FERNWOOD ROAD BETHESDA MD 20817
Rozanski Horacio director 8283 GREENSBORO DRIVE MCLEAN VA 22102
Lee Felitia officer: Controller and CAO 10400 FERNWOOD ROAD BETHESDA MD 20817
Mccarthy Margaret M director AETNA INC. 151 FARMINGTON AVENUE HARTFORD CT 06156
Brown William P officer: Pres. & Managing Dir., Europe 10400 FERNWOOD ROAD BETHESDA MD 20817
Reiss Rena Hozore officer: EVP & General Counsel 71 SOUTH WACKER DRIVE 12TH FLOOR CHICAGO IL 60606
Duncan Bruce W director ONE NORTH WACKER DRIVE SUITE 4200 CHICAGO IL 60606
Hippeau Eric director STARWOOD HOTELS & RESORTS WORLDWIDE 44 SOUTH BROADWAY WHITE PLAINS NY 10601
Lewis Aylwin B director 111 N. CANAL SUITE 850 CHICAGO IL 60606
Oberg Kathleen K. officer: CFO 10400 FERNWOOD ROAD BETHESDA MD 20817
Smith Craig S. officer: Pres. Mgn. Dir. Asia Pacific 10400 FERNWOOD ROAD BETHESDA MD 20817
Schwab Susan C director 2101 VAN MUNCHING HALL COLLEGE PARK MD 20742
Juliana B. Marriott Marital Trust other: Member of a 10% Group 6106 MACARTHER BOULEVARD SUITE 110 BETHESDA MD 20816
Bauduin Val officer: Controller & CAO 10400 FERNWOOD ROAD BETHESDA MD 20817

Marriott International Headlines

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