The Wendy's Co Beneish M-Score Historical Data
The historical data trend for The Wendy's Co'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.
The Wendy's Co Beneish M-Score Chart
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The Wendy's Co Annual Data
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Trend |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
Dec24 |
| Beneish M-Score |
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-2.75 |
-2.29 |
-2.91 |
-2.64 |
-2.79 |
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The Wendy's Co Quarterly Data
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Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
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Sep23 |
Dec23 |
Mar24 |
Jun24 |
Sep24 |
Dec24 |
Mar25 |
| Beneish M-Score |
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-2.85 |
-2.89 |
-2.99 |
-2.79 |
-2.79 |
Competitive Comparison of The Wendy's Co's Beneish M-Score
For the Restaurants subindustry, The Wendy's Co'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.
The Wendy's Co's Beneish M-Score Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Wendy's Co's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where The Wendy's Co's Beneish M-Score falls into.
The Wendy's Co 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 The Wendy's Co 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 * 0.7988 | + | 0.528 * 1.0142 | + | 0.404 * 1.0333 | + | 0.892 * 1.0218 | + | 0.115 * 0.9616 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.997 | + | 4.679 * -0.032823 | - | 0.327 * 1.0341 |
| = | -2.79 |
* 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 (Mar25) TTM: | Last Year (Mar24) TTM: |
Total Receivables was $102 Mil.
Revenue was 523.472 + 574.273 + 566.739 + 570.727 = $2,235 Mil.
Gross Profit was 147.978 + 325.168 + 155.385 + 162.412 = $791 Mil.
Total Current Assets was $644 Mil.
Total Assets was $4,919 Mil.
Property, Plant and Equipment(Net PPE) was $1,820 Mil.
Depreciation, Depletion and Amortization(DDA) was $160 Mil.
Selling, General, & Admin. Expense(SGA) was $263 Mil.
Total Current Liabilities was $434 Mil.
Long-Term Debt & Capital Lease Obligation was $3,924 Mil.
Net Income was 39.232 + 47.497 + 50.224 + 54.643 = $192 Mil.
Non Operating Income was 6.449 + -11.501 + 10.934 + 6.45 = $12 Mil.
Cash Flow from Operations was 85.415 + 68.626 + 141.218 + 45.476 = $341 Mil.
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Total Receivables was $126 Mil.
Revenue was 534.753 + 540.651 + 550.555 + 561.565 = $2,188 Mil.
Gross Profit was 154.146 + 305.037 + 159.956 + 165.954 = $785 Mil.
Total Current Assets was $868 Mil.
Total Assets was $5,190 Mil.
Property, Plant and Equipment(Net PPE) was $1,815 Mil.
Depreciation, Depletion and Amortization(DDA) was $153 Mil.
Selling, General, & Admin. Expense(SGA) was $258 Mil.
Total Current Liabilities was $425 Mil.
Long-Term Debt & Capital Lease Obligation was $4,020 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) |
| = | (102.474 / 2235.211) | / | (125.546 / 2187.524) |
| = | 0.045845 | / | 0.057392 |
| | = | 0.7988 |
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) |
| = | (785.093 / 2187.524) | / | (790.943 / 2235.211) |
| = | 0.358896 | / | 0.353856 |
| | = | 1.0142 |
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 - (644.198 + 1819.614) / 4919.482) | / | (1 - (867.528 + 1815.158) / 5189.77) |
| = | 0.499172 | / | 0.483082 |
| | = | 1.0333 |
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 |
| = | 2235.211 | / | 2187.524 |
| | = | 1.0218 |
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)) |
| = | (152.573 / (152.573 + 1815.158)) | / | (159.591 / (159.591 + 1819.614)) |
| = | 0.077538 | / | 0.080634 |
| | = | 0.9616 |
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) |
| = | (262.908 / 2235.211) | / | (258.064 / 2187.524) |
| = | 0.117621 | / | 0.117971 |
| | = | 0.997 |
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) |
| = | ((3924.396 + 433.505) / 4919.482) | / | ((4020.412 + 425.449) / 5189.77) |
| = | 0.885846 | / | 0.856659 |
| | = | 1.0341 |
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 |
| = | (191.596 - 12.332 | - | 340.735) | / | 4919.482 |
| | = | -0.032823 |
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 Wendy's Co has a M-score of -2.79 suggests that the company is unlikely to be a manipulator.
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