Toast Beneish M-Score Historical Data
The historical data trend for Toast'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.
Toast Beneish M-Score Chart
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Toast Annual Data
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Trend |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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- |
- |
- |
-2.16 |
-3.25 |
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Toast Quarterly Data
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Dec19 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.16 |
-2.35 |
-2.42 |
-3.12 |
-3.25 |
Competitive Comparison of Toast's Beneish M-Score
For the Software - Infrastructure subindustry, Toast'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.
Toast's Beneish M-Score Distribution in the Software Industry
For the Software industry and Technology sector, Toast's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Toast's Beneish M-Score falls into.
Toast 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 Toast 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 * 0.823 | + | 0.528 * 0.8674 | + | 0.404 * 1.1534 | + | 0.892 * 1.4158 | + | 0.115 * 0.662 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.8792 | + | 4.679 * -0.197651 | - | 0.327 * 1.0868 |
| = | -3.25 |
* 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 $127 Mil.
Revenue was 1036 + 1032 + 978 + 819 = $3,865 Mil.
Gross Profit was 226 + 226 + 208 + 174 = $834 Mil.
Total Current Assets was $1,570 Mil.
Total Assets was $1,958 Mil.
Property, Plant and Equipment(Net PPE) was $111 Mil.
Depreciation, Depletion and Amortization(DDA) was $32 Mil.
Selling, General, & Admin. Expense(SGA) was $763 Mil.
Total Current Liabilities was $663 Mil.
Long-Term Debt & Capital Lease Obligation was $33 Mil.
Net Income was -36 + -31 + -98 + -81 = $-246 Mil.
Non Operating Income was 11 + 18 + -26 + 3 = $6 Mil.
Cash Flow from Operations was 92 + 48 + 50 + -55 = $135 Mil.
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Total Receivables was $109 Mil.
Revenue was 768 + 752 + 675 + 535 = $2,730 Mil.
Gross Profit was 158 + 151 + 113 + 89 = $511 Mil.
Total Current Assets was $1,407 Mil.
Total Assets was $1,761 Mil.
Property, Plant and Equipment(Net PPE) was $138 Mil.
Depreciation, Depletion and Amortization(DDA) was $24 Mil.
Selling, General, & Admin. Expense(SGA) was $613 Mil.
Total Current Liabilities was $496 Mil.
Long-Term Debt & Capital Lease Obligation was $80 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) |
| = | (127 / 3865) | / | (109 / 2730) |
| = | 0.032859 | / | 0.039927 |
| | = | 0.823 |
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) |
| = | (511 / 2730) | / | (834 / 3865) |
| = | 0.187179 | / | 0.215783 |
| | = | 0.8674 |
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 - (1570 + 111) / 1958) | / | (1 - (1407 + 138) / 1761) |
| = | 0.141471 | / | 0.122658 |
| | = | 1.1534 |
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 |
| = | 3865 | / | 2730 |
| | = | 1.4158 |
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)) |
| = | (24 / (24 + 138)) | / | (32 / (32 + 111)) |
| = | 0.148148 | / | 0.223776 |
| | = | 0.662 |
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) |
| = | (763 / 3865) | / | (613 / 2730) |
| = | 0.197413 | / | 0.224542 |
| | = | 0.8792 |
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) |
| = | ((33 + 663) / 1958) | / | ((80 + 496) / 1761) |
| = | 0.355465 | / | 0.327087 |
| | = | 1.0868 |
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 |
| = | (-246 - 6 | - | 135) | / | 1958 |
| | = | -0.197651 |
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.
Toast has a M-score of -3.25 suggests that the company is unlikely to be a manipulator.
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