Shake Shack Beneish M-Score Historical Data
The historical data trend for Shake Shack'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.
Shake Shack Beneish M-Score Chart
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Shake Shack Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-3.48 |
-2.78 |
-2.42 |
-2.17 |
-2.63 |
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Shake Shack Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.17 |
-2.63 |
-2.64 |
-2.65 |
-2.63 |
Competitive Comparison of Shake Shack's Beneish M-Score
For the Restaurants subindustry, Shake Shack'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.
Shake Shack's Beneish M-Score Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Shake Shack's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Shake Shack's Beneish M-Score falls into.
Shake Shack 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 Shake Shack 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 | + | 0.528 * 0.9635 | + | 0.404 * 0.9661 | + | 0.892 * 1.2077 | + | 0.115 * 0.8983 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.92 | + | 4.679 * -0.063775 | - | 0.327 * 1.0096 |
| = | -2.63 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $29 Mil.
Revenue was 286.243 + 276.207 + 271.805 + 253.278 = $1,088 Mil.
Gross Profit was 127.355 + 122.794 + 120.847 + 107.242 = $478 Mil.
Total Current Assets was $334 Mil.
Total Assets was $1,606 Mil.
Property, Plant and Equipment(Net PPE) was $929 Mil.
Depreciation, Depletion and Amortization(DDA) was $93 Mil.
Selling, General, & Admin. Expense(SGA) was $209 Mil.
Total Current Liabilities was $164 Mil.
Long-Term Debt & Capital Lease Obligation was $719 Mil.
Net Income was 7.223 + 7.627 + 6.948 + -1.534 = $20 Mil.
Non Operating Income was -2.766 + -2.02 + -3.234 + -1.442 = $-9 Mil.
Cash Flow from Operations was 41.548 + 28.4 + 42.371 + 19.82 = $132 Mil.
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Total Receivables was $24 Mil.
Revenue was 238.529 + 227.814 + 230.752 + 203.391 = $900 Mil.
Gross Profit was 104.186 + 95.402 + 98.914 + 83.042 = $382 Mil.
Total Current Assets was $344 Mil.
Total Assets was $1,512 Mil.
Property, Plant and Equipment(Net PPE) was $835 Mil.
Depreciation, Depletion and Amortization(DDA) was $74 Mil.
Selling, General, & Admin. Expense(SGA) was $188 Mil.
Total Current Liabilities was $148 Mil.
Long-Term Debt & Capital Lease Obligation was $676 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) |
| = | (28.983 / 1087.533) | / | (23.998 / 900.486) |
| = | 0.02665 | / | 0.02665 |
| | = | 1 |
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) |
| = | (381.544 / 900.486) | / | (478.238 / 1087.533) |
| = | 0.423709 | / | 0.439746 |
| | = | 0.9635 |
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 - (334.432 + 929.291) / 1605.857) | / | (1 - (343.988 + 834.519) / 1511.95) |
| = | 0.213054 | / | 0.220538 |
| | = | 0.9661 |
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 |
| = | 1087.533 | / | 900.486 |
| | = | 1.2077 |
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)) |
| = | (74.296 / (74.296 + 834.519)) | / | (93.04 / (93.04 + 929.291)) |
| = | 0.08175 | / | 0.091008 |
| | = | 0.8983 |
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) |
| = | (209.388 / 1087.533) | / | (188.451 / 900.486) |
| = | 0.192535 | / | 0.209277 |
| | = | 0.92 |
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) |
| = | ((718.89 + 164.067) / 1605.857) | / | ((675.725 + 147.718) / 1511.95) |
| = | 0.549835 | / | 0.544623 |
| | = | 1.0096 |
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 |
| = | (20.264 - -9.462 | - | 132.139) | / | 1605.857 |
| | = | -0.063775 |
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.
Shake Shack has a M-score of -2.63 suggests that the company is unlikely to be a manipulator.
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