McDonald's Beneish M-Score Historical Data
The historical data trend for McDonald's'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.
McDonald's Beneish M-Score Chart
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McDonald's Annual Data
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Trend |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
Dec24 |
| Beneish M-Score |
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-2.67 |
-2.68 |
-2.36 |
-2.39 |
-2.51 |
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McDonald's Quarterly Data
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Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
Mar24 |
Jun24 |
Sep24 |
Dec24 |
Mar25 |
| Beneish M-Score |
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-2.37 |
-2.41 |
-2.38 |
-2.51 |
-2.50 |
Competitive Comparison of McDonald's's Beneish M-Score
For the Restaurants subindustry, McDonald's'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.
McDonald's's Beneish M-Score Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, McDonald's's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where McDonald's's Beneish M-Score falls into.
McDonald's 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 McDonald's 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 * 1.069 | + | 0.528 * 1.0032 | + | 0.404 * 1.0083 | + | 0.892 * 0.9977 | + | 0.115 * 0.9844 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9467 | + | 4.679 * -0.021925 | - | 0.327 * 0.977 |
| = | -2.50 |
* 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 $2,387 Mil.
Revenue was 5955 + 6388 + 6874 + 6490 = $25,707 Mil.
Gross Profit was 3336 + 3679 + 3876 + 3718 = $14,609 Mil.
Total Current Assets was $4,735 Mil.
Total Assets was $56,329 Mil.
Property, Plant and Equipment(Net PPE) was $39,391 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,107 Mil.
Selling, General, & Admin. Expense(SGA) was $2,365 Mil.
Total Current Liabilities was $4,008 Mil.
Long-Term Debt & Capital Lease Obligation was $52,020 Mil.
Net Income was 1868 + 2016 + 2255 + 2022 = $8,161 Mil.
Non Operating Income was 34 + 20 + -22 + -120 = $-88 Mil.
Cash Flow from Operations was 2428 + 2631 + 2736 + 1689 = $9,484 Mil.
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Total Receivables was $2,238 Mil.
Revenue was 6169 + 6408 + 6692 + 6497 = $25,766 Mil.
Gross Profit was 3439 + 3656 + 3864 + 3731 = $14,690 Mil.
Total Current Assets was $4,057 Mil.
Total Assets was $53,513 Mil.
Property, Plant and Equipment(Net PPE) was $37,959 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,997 Mil.
Selling, General, & Admin. Expense(SGA) was $2,504 Mil.
Total Current Liabilities was $4,886 Mil.
Long-Term Debt & Capital Lease Obligation was $49,592 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) |
| = | (2387 / 25707) | / | (2238 / 25766) |
| = | 0.092854 | / | 0.086859 |
| | = | 1.069 |
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) |
| = | (14690 / 25766) | / | (14609 / 25707) |
| = | 0.570131 | / | 0.568289 |
| | = | 1.0032 |
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 - (4735 + 39391) / 56329) | / | (1 - (4057 + 37959) / 53513) |
| = | 0.216638 | / | 0.214845 |
| | = | 1.0083 |
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 |
| = | 25707 | / | 25766 |
| | = | 0.9977 |
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)) |
| = | (1997 / (1997 + 37959)) | / | (2107 / (2107 + 39391)) |
| = | 0.04998 | / | 0.050774 |
| | = | 0.9844 |
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) |
| = | (2365 / 25707) | / | (2504 / 25766) |
| = | 0.091998 | / | 0.097182 |
| | = | 0.9467 |
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) |
| = | ((52020 + 4008) / 56329) | / | ((49592 + 4886) / 53513) |
| = | 0.994656 | / | 1.018033 |
| | = | 0.977 |
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 |
| = | (8161 - -88 | - | 9484) | / | 56329 |
| | = | -0.021925 |
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.
McDonald's has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.
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