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Rave Restaurant Group (Rave Restaurant Group) Beneish M-Score : -2.60 (As of Apr. 29, 2024)


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What is Rave Restaurant Group Beneish M-Score?

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 -2.6 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Rave Restaurant Group's Beneish M-Score or its related term are showing as below:

RAVE' s Beneish M-Score Range Over the Past 10 Years
Min: -5.05   Med: -2.51   Max: 3.91
Current: -2.6

During the past 13 years, the highest Beneish M-Score of Rave Restaurant Group was 3.91. The lowest was -5.05. And the median was -2.51.


Rave Restaurant Group Beneish M-Score Historical Data

The historical data trend for Rave Restaurant Group'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.

Rave Restaurant Group Beneish M-Score Chart

Rave Restaurant Group Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.44 -4.47 -2.59 3.40 -3.02

Rave Restaurant Group 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 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 2.99 2.52 -3.02 -2.76 -2.60

Competitive Comparison of Rave Restaurant Group's Beneish M-Score

For the Restaurants subindustry, Rave Restaurant Group'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.


Rave Restaurant Group's Beneish M-Score Distribution in the Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Rave Restaurant Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Rave Restaurant Group's Beneish M-Score falls into.



Rave Restaurant Group 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 Rave Restaurant Group 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 * 0.8402+0.528 * 1.0168+0.404 * 0.8584+0.892 * 1.0516+0.115 * 0.7496
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8997+4.679 * -0.010311-0.327 * 0.7405
=-2.60

* 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 $1.28 Mil.
Revenue was 2.792 + 3.089 + 3.048 + 2.97 = $11.90 Mil.
Gross Profit was 1.948 + 1.917 + 2.125 + 2.006 = $8.00 Mil.
Total Current Assets was $7.11 Mil.
Total Assets was $14.16 Mil.
Property, Plant and Equipment(Net PPE) was $1.22 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.66 Mil.
Selling, General, & Admin. Expense(SGA) was $5.35 Mil.
Total Current Liabilities was $1.70 Mil.
Long-Term Debt & Capital Lease Obligation was $0.74 Mil.
Net Income was 0.553 + 0.386 + 0.635 + 0.323 = $1.90 Mil.
Non Operating Income was -0.01 + -0.025 + -0.036 + -0.028 = $-0.10 Mil.
Cash Flow from Operations was -0.323 + 0.628 + 1.396 + 0.441 = $2.14 Mil.
Total Receivables was $1.44 Mil.
Revenue was 2.866 + 3.005 + 2.824 + 2.62 = $11.32 Mil.
Gross Profit was 1.999 + 1.803 + 2.015 + 1.914 = $7.73 Mil.
Total Current Assets was $5.02 Mil.
Total Assets was $13.03 Mil.
Property, Plant and Equipment(Net PPE) was $1.75 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.63 Mil.
Selling, General, & Admin. Expense(SGA) was $5.66 Mil.
Total Current Liabilities was $1.86 Mil.
Long-Term Debt & Capital Lease Obligation was $1.17 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)
=(1.275 / 11.899) / (1.443 / 11.315)
=0.107152 / 0.12753
=0.8402

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)
=(7.731 / 11.315) / (7.996 / 11.899)
=0.683252 / 0.671989
=1.0168

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 - (7.106 + 1.216) / 14.16) / (1 - (5.02 + 1.751) / 13.029)
=0.412288 / 0.480313
=0.8584

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
=11.899 / 11.315
=1.0516

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))
=(0.628 / (0.628 + 1.751)) / (0.661 / (0.661 + 1.216))
=0.263976 / 0.352158
=0.7496

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)
=(5.354 / 11.899) / (5.659 / 11.315)
=0.449954 / 0.500133
=0.8997

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)
=((0.74 + 1.697) / 14.16) / ((1.172 + 1.856) / 13.029)
=0.172105 / 0.232405
=0.7405

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
=(1.897 - -0.099 - 2.142) / 14.16
=-0.010311

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.

Rave Restaurant Group has a M-score of -2.60 suggests that the company is unlikely to be a manipulator.


Rave Restaurant Group Beneish M-Score Related Terms

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Rave Restaurant Group (Rave Restaurant Group) Business Description

Traded in Other Exchanges
N/A
Address
3551 Plano Parkway, The Colony, TX, USA, 75056
Rave Restaurant Group Inc operates and franchises pizza buffet, delivery/carry-out, and express restaurants. It operates restaurants under the brand name, Pizza Inn, and Pie Five Pizza Company. It has three operating segments. The Pizza Inn and Pie Five Franchising segments establish franchisees, licensees, and territorial rights. The company-owned restaurant segment includes sales and operating results for all company-owned restaurants. The Pizza Inn Franchising segment accounts for the company's revenue. Geographically, it generates the majority of the revenue from the United States.
Executives
Hallmark Insurance Co other: See Note 1 777 MAIN STREET, SUITE 1000, FORT WORTH TX 76102
Hallmark Specialty Insurance Co other: See Note 1 777 MAIN STREET, SUITE 1000, FORT WORTH TX 76102
American Hallmark Insurance Co Of Texas other: See Explanation 777 MAIN STREET, SUITE 1000, FORT WORTH TX 76102
Brandon Solano officer: Chief Executive Officer 3551 PLANO PARKWAY, THE COLONY TX 75056
Mark E Schwarz director, 10 percent owner 5420 LYNDON B. JOHNSON FREEWAY, SUITE 1100, DALLAS TX 75240
Clinton Dayne Fendley officer: Vice President - Finance 3551 PLANO PARKWAY, THE COLONY TX 75056
Burns Michael F Jr officer: Chief Operating Officer 3551 PLANO PARKWAY, THE COLONY TX 75056
Andrea K. Allen officer: Chief Acctg. & Admin. Officer 3551 PLANO PARKWAY, THE COLONY TX 75056
Robert W. Bafundo officer: President 3551 PLANO PARKWAY, THE COLONY TX 75056
Scott Crane officer: President & CEO 3551 PLANO PARKWAY, THE COLONY TX 75056
Brian Timothy Bares director 12600 HILL COUNTRY BLVD, SUITE R-230, AUSTIN TX 78738
Timothy E Mullany officer: Chief Financial Officer 3551 PLANO PARKWAY, THE COLONY TX 75056
Hammett William C Jr director CAMPBELL CENTRE, 8350 N CENTRAL EXPRESSWAY STE 1900, DALLAS TX 75206
Randall E. Gier officer: President & CEO 3551 PLANO PARKWAY, THE COLONY TX 75056
Clinton J Coleman director C/O NEWCASTLE CAPITAL MANAGEMENT, L.P., 200 CRESCENT COURT, SUITE 1400, DALLAS TX 75201

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