The Wendy's Co Beneish M-Score Historical Data
The historical data trend for The Wendy's Co'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.
The Wendy's Co Beneish M-Score Chart
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The Wendy's Co Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.47 |
-2.75 |
-2.57 |
-2.52 |
-2.55 |
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The Wendy's Co Quarterly Data
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Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
Mar24 |
| Beneish M-Score |
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-2.29 |
-2.24 |
-2.47 |
-2.55 |
-2.75 |
Competitive Comparison of The Wendy's Co's Beneish M-Score
For the Restaurants subindustry, The Wendy's Co'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.
The Wendy's Co's Beneish M-Score Distribution in the Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, The Wendy's Co's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where The Wendy's Co's Beneish M-Score falls into.
The Wendy's Co 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 The Wendy's Co 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 * 0.9182 | + | 0.528 * 0.9737 | + | 0.404 * 1.0251 | + | 0.892 * 0.9878 | + | 0.115 * 0.9085 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9561 | + | 4.679 * -0.039727 | - | 0.327 * 1.0224 |
| = | -2.77 |
* 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 (Mar24) TTM: | Last Year (Mar23) TTM: |
Total Receivables was €116 Mil.
Revenue was 491.973 + 495.777 + 515.87 + 518.324 = €2,022 Mil.
Gross Profit was 141.814 + 191.595 + 179.019 + 153.176 = €666 Mil.
Total Current Assets was €798 Mil.
Total Assets was €4,775 Mil.
Property, Plant and Equipment(Net PPE) was €1,670 Mil.
Depreciation, Depletion and Amortization(DDA) was €141 Mil.
Selling, General, & Admin. Expense(SGA) was €178 Mil.
Total Current Liabilities was €391 Mil.
Long-Term Debt & Capital Lease Obligation was €3,699 Mil.
Net Income was 38.634 + 43.042 + 54.392 + 55.04 = €191 Mil.
Non Operating Income was 1.408 + 9.075 + 6.154 + 0.905 = €18 Mil.
Cash Flow from Operations was 91.988 + 69.592 + 119.956 + 81.712 = €363 Mil.
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Total Receivables was €127 Mil.
Revenue was 493.906 + 506.465 + 537.895 + 508.743 = €2,047 Mil.
Gross Profit was 142.828 + 192.26 + 179.09 + 141.935 = €656 Mil.
Total Current Assets was €937 Mil.
Total Assets was €5,051 Mil.
Property, Plant and Equipment(Net PPE) was €1,734 Mil.
Depreciation, Depletion and Amortization(DDA) was €132 Mil.
Selling, General, & Admin. Expense(SGA) was €189 Mil.
Total Current Liabilities was €373 Mil.
Long-Term Debt & Capital Lease Obligation was €3,859 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) |
| = | (115.502 / 2021.944) | / | (127.344 / 2047.009) |
| = | 0.057124 | / | 0.06221 |
| | = | 0.9182 |
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) |
| = | (656.113 / 2047.009) | / | (665.604 / 2021.944) |
| = | 0.320523 | / | 0.32919 |
| | = | 0.9737 |
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 - (798.126 + 1669.945) / 4774.588) | / | (1 - (937.178 + 1733.582) / 5051.098) |
| = | 0.483082 | / | 0.471252 |
| | = | 1.0251 |
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 |
| = | 2021.944 | / | 2047.009 |
| | = | 0.9878 |
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)) |
| = | (131.958 / (131.958 + 1733.582)) | / | (141.004 / (141.004 + 1669.945)) |
| = | 0.070734 | / | 0.077862 |
| | = | 0.9085 |
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) |
| = | (178.349 / 2021.944) | / | (188.848 / 2047.009) |
| = | 0.088207 | / | 0.092256 |
| | = | 0.9561 |
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) |
| = | ((3698.779 + 391.413) / 4774.588) | / | ((3859.042 + 373.162) / 5051.098) |
| = | 0.856659 | / | 0.837878 |
| | = | 1.0224 |
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 |
| = | (191.108 - 17.542 | - | 363.248) | / | 4774.588 |
| | = | -0.039727 |
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.
The Wendy's Co has a M-score of -2.77 suggests that the company is unlikely to be a manipulator.
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