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
|
McDonald's Annual Data
|
|
Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
|
Get a 7-Day Free Trial
|
|
|
-2.84 |
-2.67 |
-2.68 |
-2.36 |
-2.39 |
|
McDonald's Quarterly Data
|
|
Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
Get a 7-Day Free Trial
|
|
|
|
|
|
|
|
|
|
|
|
|
-2.36 |
-2.27 |
-2.36 |
-2.36 |
-2.39 |
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 * 1.0697 | + | 0.528 * 0.9973 | + | 0.404 * 1.0087 | + | 0.892 * 1.0997 | + | 0.115 * 0.9998 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.8886 | + | 4.679 * -0.019488 | - | 0.327 * 0.9889 |
| = | -2.39 |
* 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 $2,488 Mil.
Revenue was 6406.2 + 6692.2 + 6497.5 + 5897.8 = $25,494 Mil.
Gross Profit was 3654.2 + 3863.7 + 3731 + 3313.6 = $14,563 Mil.
Total Current Assets was $7,986 Mil.
Total Assets was $56,147 Mil.
Property, Plant and Equipment(Net PPE) was $38,422 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,978 Mil.
Selling, General, & Admin. Expense(SGA) was $2,435 Mil.
Total Current Liabilities was $6,859 Mil.
Long-Term Debt & Capital Lease Obligation was $50,211 Mil.
Net Income was 2039 + 2317.1 + 2310.4 + 1802.3 = $8,469 Mil.
Non Operating Income was -21.8 + 33.4 + 41.7 + -102.2 = $-49 Mil.
Cash Flow from Operations was 2488.9 + 3029 + 1673.3 + 2420.7 = $9,612 Mil.
|
Total Receivables was $2,115 Mil.
Revenue was 5926.5 + 5872.1 + 5718.4 + 5665.6 = $23,183 Mil.
Gross Profit was 3408.9 + 3446.1 + 3302.1 + 3050.1 = $13,207 Mil.
Total Current Assets was $5,424 Mil.
Total Assets was $50,436 Mil.
Property, Plant and Equipment(Net PPE) was $36,339 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,871 Mil.
Selling, General, & Admin. Expense(SGA) was $2,492 Mil.
Total Current Liabilities was $3,802 Mil.
Long-Term Debt & Capital Lease Obligation was $48,038 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) |
| = | (2488 / 25493.7) | / | (2115 / 23182.6) |
| = | 0.097593 | / | 0.091232 |
| | = | 1.0697 |
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) |
| = | (13207.2 / 23182.6) | / | (14562.5 / 25493.7) |
| = | 0.569703 | / | 0.57122 |
| | = | 0.9973 |
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 - (7986.4 + 38422) / 56146.8) | / | (1 - (5424.2 + 36339.3) / 50435.6) |
| = | 0.173445 | / | 0.171944 |
| | = | 1.0087 |
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 |
| = | 25493.7 | / | 23182.6 |
| | = | 1.0997 |
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)) |
| = | (1870.6 / (1870.6 + 36339.3)) | / | (1978.2 / (1978.2 + 38422)) |
| = | 0.048956 | / | 0.048965 |
| | = | 0.9998 |
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) |
| = | (2435.2 / 25493.7) | / | (2492.2 / 23182.6) |
| = | 0.095522 | / | 0.107503 |
| | = | 0.8886 |
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) |
| = | ((50210.6 + 6859) / 56146.8) | / | ((48037.9 + 3802.1) / 50435.6) |
| = | 1.016435 | / | 1.027845 |
| | = | 0.9889 |
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 |
| = | (8468.8 - -48.9 | - | 9611.9) | / | 56146.8 |
| | = | -0.019488 |
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 -2.39 suggests that the company is unlikely to be a manipulator.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
MCD has been successfully added to your