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Sonic Beneish M-Score

: 0.00 (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.

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

During the past 13 years, the highest Beneish M-Score of Sonic was 0.00. The lowest was 0.00. And the median was 0.00.


Sonic Beneish M-Score Historical Data

The historical data trend for Sonic'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.

Sonic Annual Data
Trend Aug09 Aug10 Aug11 Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.70 -3.14 -2.81 -2.52 -2.82

Sonic Quarterly Data
Nov13 Feb14 May14 Aug14 Nov14 Feb15 May15 Aug15 Nov15 Feb16 May16 Aug16 Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18
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 -2.52 -2.68 -2.00 -2.55 -2.82

Competitive Comparison

For the Restaurants subindustry, Sonic'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.

   

Sonic Beneish M-Score Distribution

For the Restaurants industry and Consumer Cyclical sector, Sonic's Beneish M-Score distribution charts can be found below:

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



Sonic 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 Sonic 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 * 1.1671+0.528 * 0.8793+0.404 * 0.8483+0.892 * 0.8875+0.115 * 0.9795
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1466+4.679 * -0.0389-0.327 * 1.1685
=-2.82

* 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 (Aug18) TTM:Last Year (Aug17) TTM:
Total Receivables was $35.0 Mil.
Revenue was 111.754 + 118.306 + 88.102 + 105.428 = $423.6 Mil.
Gross Profit was 26.765 + 76.289 + 41.048 + 51.362 = $195.5 Mil.
Total Current Assets was $104.4 Mil.
Total Assets was $531.1 Mil.
Property, Plant and Equipment(Net PPE) was $298.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $38.4 Mil.
Selling, General, & Admin. Expense(SGA) was $80.1 Mil.
Total Current Liabilities was $62.1 Mil.
Long-Term Debt & Capital Lease Obligation was $714.5 Mil.
Net Income was 18.592 + 21.576 + 19.607 + 11.43 = $71.2 Mil.
Non Operating Income was -0.178 + 0 + 0.272 + 0.221 = $0.3 Mil.
Cash Flow from Operations was 26.714 + 25.216 + 16.54 + 23.076 = $91.5 Mil.
Total Receivables was $33.8 Mil.
Revenue was 123.568 + 123.99 + 100.158 + 129.551 = $477.3 Mil.
Gross Profit was 17.457 + 79.02 + 42.932 + 54.243 = $193.7 Mil.
Total Current Assets was $89.2 Mil.
Total Assets was $561.7 Mil.
Property, Plant and Equipment(Net PPE) was $312.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $39.2 Mil.
Selling, General, & Admin. Expense(SGA) was $78.7 Mil.
Total Current Liabilities was $58.6 Mil.
Long-Term Debt & Capital Lease Obligation was $644.3 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)
=(34.967 / 423.59) / (33.758 / 477.267)
=0.08254916 / 0.0707319
=1.1671

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)
=(193.652 / 477.267) / (195.464 / 423.59)
=0.40575192 / 0.46144621
=0.8793

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 - (104.429 + 298.222) / 531.134) / (1 - (89.184 + 312.38) / 561.744)
=0.24190317 / 0.28514768
=0.8483

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
=423.59 / 477.267
=0.8875

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))
=(39.248 / (39.248 + 312.38)) / (38.355 / (38.355 + 298.222))
=0.11161796 / 0.11395609
=0.9795

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)
=(80.077 / 423.59) / (78.687 / 477.267)
=0.18904365 / 0.16486998
=1.1466

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)
=((714.481 + 62.079) / 531.134) / ((644.283 + 58.616) / 561.744)
=1.46207925 / 1.25127994
=1.1685

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
=(71.205 - 0.315 - 91.546) / 531.134
=-0.0389

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.

Sonic has a M-score of -2.82 suggests that the company is unlikely to be a manipulator.


Sonic Business Description

Sonic logo
Traded in Other Exchanges
N/A
Address
Sonic Corp operates and franchises drive-in restaurants throughout the United States. The restaurants typically consist of a building that houses only a kitchen to go along with 16 to 24 parking spaces that have their own payment terminals, intercom speakers, and menu boards. Carhops serve customers in their cars. Many locations also have a drive-thru lane and patio seating as alternatives. Sonic franchises roughly 90% of its restaurants, and the royalty revenue the company earns on franchise sales contributes roughly a quarter of total company revenue. Company-operated stores provide the balance of total revenue. Sonic owns the property on which hundreds of its restaurants are located. For those properties that house franchised stores, franchisees lease from the company.
Executives
Davis Steven A director 3776 SOUTH HIGH ST COLUMBUS OH 43207
Hobart Lauren R director 345 COURT STREET CORAOPOLIS PA 15275
Bartel Tony director 625 WESTPORT PARKWAY GRAPEVINE TX 76051
Taylor Kathy L director C/O FREDERIC DORWART LAWYERS 124 EAST FOURTH STREET TULSA OK 74103
San Pedro Claudia officer: President 300 JOHNNY BENCH DRIVE OKLAHOMA CITY OK 73104
Lavelle Kate S director 24089 3RD STREET FAIRHOPE AL 36532
Pena Federico F director 711 HIGH STREET DES MOINES IA 50392-0300
Nichols J Larry director DEVON ENERGY CORP 20 NORTH BROADWAY STE 1500 OKLAHOMA CITY OK 73102-8260
Southeastern Asset Management Inc/tn/ 10 percent owner 6410 POPLAR AVENUE SUITE 900 MEMPHIS TN 38119
Longleaf Partners Funds Trust 10 percent owner C/O SOUTHEASTERN ASSET MANAGEMENT 6410 POPLAR AVE, SUITE 900 MEMPHIS TN 38119
Smith Todd Whitney officer: President and CMO 300 JOHNNY BENCH DRIVE OKLAHOMA CITY OK 73104
Miller Craig Jeffrey officer: Former Officer of Subsidiary 5008 HARTRIDGE WAY GREENSBORO NC 27407
Rosenberg Robert M director
Maples Michael J director 2208 WINDSOR ROAD AUSTIN TX 78703
Benham Douglas N director
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