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Franklin Covey Co Beneish M-Score

: -2.95 (As of Today)
View and export this data going back to 1992. Start your Free Trial

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 -2.95 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NYSE:FC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.55   Med: -2.69   Max: -1
Current: -2.95

-3.55
-1

During the past 13 years, the highest Beneish M-Score of Franklin Covey Co was -1.00. The lowest was -3.55. And the median was -2.69.


Franklin Covey Co Beneish M-Score Historical Data

The historical data trend for Franklin Covey 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.

* Premium members only.

Franklin Covey Co Annual Data
Trend Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.04 -3.02 -3.17 -3.55 -2.95

Franklin Covey Co Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
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 -3.55 -3.70 -3.70 -2.93 -2.95

Competitive Comparison

For the Consulting Services subindustry, Franklin Covey 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.

   

Franklin Covey Co Beneish M-Score Distribution

For the Business Services industry and Industrials sector, Franklin Covey Co's Beneish M-Score distribution charts can be found below:

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



Franklin Covey 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 Franklin Covey 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 * 1.1093+0.528 * 0.9497+0.404 * 0.9478+0.892 * 1.1296+0.115 * 0.8257
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0509+4.679 * -0.1304-0.327 * 1.0049
=-2.95

* 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 (Aug21) TTM:Last Year (Aug20) TTM:
Accounts Receivable was $70.7 Mil.
Revenue was 68.945 + 58.736 + 48.162 + 48.324 = $224.2 Mil.
Gross Profit was 53.268 + 45.907 + 37.34 + 36.386 = $172.9 Mil.
Total Current Assets was $136.7 Mil.
Total Assets was $249.7 Mil.
Property, Plant and Equipment(Net PPE) was $11.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.2 Mil.
Selling, General, & Admin. Expense(SGA) was $153.6 Mil.
Total Current Liabilities was $136.5 Mil.
Long-Term Debt & Capital Lease Obligation was $24.1 Mil.
Net Income was 1.807 + 12.754 + -0.046 + -0.892 = $13.6 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 15.325 + 8.94 + 11.036 + 10.876 = $46.2 Mil.
Accounts Receivable was $56.4 Mil.
Revenue was 48.993 + 37.105 + 53.745 + 58.613 = $198.5 Mil.
Gross Profit was 37.853 + 26.821 + 38.666 + 42.029 = $145.4 Mil.
Total Current Assets was $101.7 Mil.
Total Assets was $205.4 Mil.
Property, Plant and Equipment(Net PPE) was $15.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.6 Mil.
Selling, General, & Admin. Expense(SGA) was $129.4 Mil.
Total Current Liabilities was $102.5 Mil.
Long-Term Debt & Capital Lease Obligation was $29.0 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(70.68 / 224.167) / (56.407 / 198.456)
=0.31530065 / 0.28422925
=1.1093

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)
=(145.369 / 198.456) / (172.901 / 224.167)
=0.7324999 / 0.77130443
=0.9497

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 - (136.708 + 11.525) / 249.654) / (1 - (101.664 + 15.723) / 205.437)
=0.40624624 / 0.42859855
=0.9478

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
=224.167 / 198.456
=1.1296

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))
=(11.601 / (11.601 + 15.723)) / (12.199 / (12.199 + 11.525))
=0.42457181 / 0.51420502
=0.8257

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)
=(153.604 / 224.167) / (129.405 / 198.456)
=0.68522129 / 0.65205889
=1.0509

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)
=((24.136 + 136.539) / 249.654) / ((29.048 + 102.528) / 205.437)
=0.64359073 / 0.64046885
=1.0049

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
=(13.623 - 0 - 46.177) / 249.654
=-0.1304

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.

Franklin Covey Co has a M-score of -2.95 suggests that the company is unlikely to be a manipulator.


Franklin Covey Co Beneish M-Score Related Terms

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Franklin Covey Co Business Description

Franklin Covey Co logo
Industry
Industrials » Business Services NAICS : 541611 SIC : 8742
Traded in Other Exchanges
N/A
Address
2200 West Parkway Boulevard, Salt Lake City, UT, USA, 84119-2331
Franklin Covey Co is a global company focused on organizational performance improvement. It focuses on providing time management and effectiveness training for individuals and corporations via online training as well as in-person workshops and events. The company provides training and consulting services in the areas of leadership, execution, productivity, trust, sales performance, customer loyalty, and educational improvement. It operates in the business segments of Direct Offices, Education practice and International Licensees. The company derives revenue from providing training and consulting services, and through the selling of books, audio media, and other related products. It has a business presence in the United States and other international countries.
Executives
Whitman Robert A director, officer: Chief Executive Officer 4200 TEXAS COMMERCE TOWER WEST 2200 ROSS AVE DALLAS TX 75201
Young Stephen D officer: Chief Financial Officer PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: YOUNG STEPHEN D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Davis Clifton Todd officer: VP People Services 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Covey Michael Sean Merrill officer: SVP Innovations and Marketing 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Miller Scott Jeffery officer: EVP Bus Development/Marketing 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Dom Colleen D officer: EVP Operations 2200 WEST PARKWAY BLVD SALT LAKE CITY UT 84119
Walker Paul S officer: EVP, Direct Offices Division 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Stepp Esther Kay director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: STEPP ESTHER KAY a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Phillips Nancy R director 1515 BROADWAY NEW YORK NY 10036
Fung Michael director 2200 WEST PARKWAY BLVD SALT LAKE CITY UT 84119
Mcnamara Donald J director 4200 TEXAS COMMERCE TOWER WEST 2200 ROSS AVE SUITE 4200 DALLAS TX 75201
Chow Anne H director 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Heiner Dennis Grant director 2220 WEST PARKWAY BLVD SALT LAKE CITY UT 84119
Van Bever Derek C M director 2200 WEST PARKWAY BLVD. SALT LAKE CITY UT 84119
Peterson Joel Clinton director C/O JETBLUE AIRWAYS CORPORATION 27-01 QUEENS PLAZA NORTH LONG ISLAND CITY NY 11101

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