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Agilent Technologies Inc (NYSE:A)
Beneish M-Score
-2.75 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Agilent Technologies Inc has a M-score of -2.75 suggests that the company is not a manipulator.

A' s 10-Year Beneish M-Score Range
Min: -4.33   Max: -1.04
Current: -2.75

-4.33
-1.04

During the past 13 years, the highest Beneish M-Score of Agilent Technologies Inc was -1.04. The lowest was -4.33. And the median was -2.65.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Agilent Technologies Inc 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 * 0.6156+0.528 * 1.0195+0.404 * 1.0552+0.892 * 1.0362+0.115 * 0.7095
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0571+4.679 * 0.0053-0.327 * 0.8719
=-2.75

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Apr15) TTM:Last Year (Apr14) TTM:
Accounts Receivable was $576 Mil.
Revenue was 963 + 1026 + 1805 + 1766 = $5,560 Mil.
Gross Profit was 480 + 513 + 897 + 914 = $2,804 Mil.
Total Current Assets was $3,620 Mil.
Total Assets was $7,412 Mil.
Property, Plant and Equipment(Net PPE) was $593 Mil.
Depreciation, Depletion and Amortization(DDA) was $322 Mil.
Selling, General & Admin. Expense(SGA) was $1,644 Mil.
Total Current Liabilities was $930 Mil.
Long-Term Debt was $1,656 Mil.
Net Income was 83 + 72 + 23 + 147 = $325 Mil.
Non Operating Income was 4 + 12 + -65 + -20 = $-69 Mil.
Cash Flow from Operations was 183 + -20 + 164 + 28 = $355 Mil.
Accounts Receivable was $903 Mil.
Revenue was 988 + 1008 + 1718 + 1652 = $5,366 Mil.
Gross Profit was 485 + 510 + 908 + 856 = $2,759 Mil.
Total Current Assets was $5,377 Mil.
Total Assets was $11,026 Mil.
Property, Plant and Equipment(Net PPE) was $1,139 Mil.
Depreciation, Depletion and Amortization(DDA) was $379 Mil.
Selling, General & Admin. Expense(SGA) was $1,501 Mil.
Total Current Liabilities was $1,719 Mil.
Long-Term Debt was $2,693 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(576 / 5560) / (903 / 5366)
=0.10359712 / 0.16828177
=0.6156

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)
=(513 / 5366) / (480 / 5560)
=0.51416325 / 0.50431655
=1.0195

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (3620 + 593) / 7412) / (1 - (5377 + 1139) / 11026)
=0.43159741 / 0.40903319
=1.0552

4. SGI = Sales Growth Index

Ratio of sales 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
=5560 / 5366
=1.0362

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(379 / (379 + 1139)) / (322 / (322 + 593))
=0.24967062 / 0.35191257
=0.7095

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(1644 / 5560) / (1501 / 5366)
=0.29568345 / 0.27972419
=1.0571

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((1656 + 930) / 7412) / ((2693 + 1719) / 11026)
=0.34889369 / 0.40014511
=0.8719

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
=(325 - -69 - 355) / 7412
=0.0053

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Agilent Technologies Inc has a M-score of -2.75 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Agilent Technologies Inc Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
DSRI 0.83670.96150.97450.98340.99571.20220.81451.03520.98491.0623
GMI 0.94130.94410.97570.98961.08220.95041.00891.01521.00821.0127
AQI 1.02431.66661.14061.04970.86070.71261.04321.64270.94980.9134
SGI 1.02831.06151.08991.06530.77611.21491.21511.03670.98891.0293
DEPI 1.01920.96680.93430.98191.2190.94140.85040.97810.83180.9552
SGAI 0.96991.0440.93960.9371.21720.89960.84980.96881.04631.0557
LVGI 0.70111.43761.20410.99331.07291.0280.76520.91351.05881.024
TATA -0.09690.2163-0.0445-0.0133-0.0602-0.0243-0.031-0.0086-0.0408-0.0116
M-score -2.97-1.36-2.65-2.47-3.01-2.36-2.50-2.16-2.76-2.50

Agilent Technologies Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
DSRI 1.0470.99090.91940.98491.09751.2681.26931.33210.79250.6156
GMI 1.0191.02321.0171.00821.00961.00961.01071.03411.02991.0195
AQI 1.71691.70730.98120.94980.92970.93690.95730.91341.03811.0552
SGI 1.02561.01691.00180.98890.88510.77750.80220.82080.91411.0362
DEPI 0.89920.83020.77990.83180.89450.96490.97260.95520.67520.7095
SGAI 1.00541.04831.05381.04631.0291.01351.02561.06531.06951.0571
LVGI 0.930.94891.06091.05881.0741.05540.87581.0240.86210.8719
TATA -0.0216-0.0259-0.0326-0.0408-0.0346-0.0362-0.0204-0.0115-0.00610.0053
M-score -2.20-2.31-2.76-2.76-2.72-2.65-2.48-2.43-2.75-2.75
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