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Agilent Technologies Inc (NYSE:A)
Beneish M-Score
-2.65 (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 -2.67 suggests that the company is not a manipulator.

A' s Beneish M-Score Range Over the Past 10 Years
Min: -3.97   Max: -0.71
Current: -2.65

-3.97
-0.71

During the past 13 years, the highest Beneish M-Score of Agilent Technologies Inc was -0.71. The lowest was -3.97. And the median was -2.64.


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 * 0.9907+0.528 * 0.9441+0.404 * 1.0538+0.892 * 1.0198+0.115 * 1.144
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.001+4.679 * -0.04-0.327 * 1.0478
=-2.67

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jul16) TTM:Last Year (Jul15) TTM:
Accounts Receivable was $590 Mil.
Revenue was 1044 + 1019 + 1028 + 1035 = $4,126 Mil.
Gross Profit was 542 + 530 + 537 + 535 = $2,144 Mil.
Total Current Assets was $3,530 Mil.
Total Assets was $7,734 Mil.
Property, Plant and Equipment(Net PPE) was $623 Mil.
Depreciation, Depletion and Amortization(DDA) was $250 Mil.
Selling, General & Admin. Expense(SGA) was $1,229 Mil.
Total Current Liabilities was $1,151 Mil.
Long-Term Debt was $1,652 Mil.
Net Income was 124 + 91 + 123 + 140 = $478 Mil.
Non Operating Income was 2 + 1 + 3 + 2 = $8 Mil.
Cash Flow from Operations was 199 + 256 + 104 + 220 = $779 Mil.
Accounts Receivable was $584 Mil.
Revenue was 1014 + 963 + 1026 + 1043 = $4,046 Mil.
Gross Profit was 513 + 480 + 513 + 479 = $1,985 Mil.
Total Current Assets was $3,478 Mil.
Total Assets was $7,251 Mil.
Property, Plant and Equipment(Net PPE) was $587 Mil.
Depreciation, Depletion and Amortization(DDA) was $286 Mil.
Selling, General & Admin. Expense(SGA) was $1,204 Mil.
Total Current Liabilities was $853 Mil.
Long-Term Debt was $1,655 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)
=(590 / 4126) / (584 / 4046)
=0.14299564 / 0.14434009
=0.9907

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)
=(1985 / 4046) / (2144 / 4126)
=0.49060801 / 0.5196316
=0.9441

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 - (3530 + 623) / 7734) / (1 - (3478 + 587) / 7251)
=0.46302043 / 0.43938767
=1.0538

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
=4126 / 4046
=1.0198

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))
=(286 / (286 + 587)) / (250 / (250 + 623))
=0.32760596 / 0.28636884
=1.144

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)
=(1229 / 4126) / (1204 / 4046)
=0.29786718 / 0.29757785
=1.001

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)
=((1652 + 1151) / 7734) / ((1655 + 853) / 7251)
=0.36242565 / 0.34588333
=1.0478

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
=(478 - 8 - 779) / 7734
=-0.04

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 -2.67 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 local exchange's currency.

Agilent Technologies Inc Annual Data

Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15Oct16
DSRI 0.97450.98340.99571.20220.81451.03521.71540.66980.97040.9895
GMI 0.97570.98961.08220.95041.00891.01521.07311.00320.96580.9667
AQI 1.14061.04970.86070.71261.04321.64270.94981.0110.98641.063
SGI 1.08991.06530.77611.21491.21511.03670.56781.03950.99751.0406
DEPI 0.93430.98191.2190.94140.85040.97810.83180.65291.28151.0621
SGAI 0.93960.9371.21720.89960.84980.96881.14760.97410.99411.0127
LVGI 1.20410.99331.07291.0280.76520.91351.05880.77071.1341.0386
TATA -0.0445-0.0133-0.0602-0.0243-0.031-0.0086-0.0398-0.0067-0.0143-0.0413
M-score -2.65-2.47-3.01-2.36-2.50-2.16-2.44-2.73-2.61-2.65

Agilent Technologies Inc Quarterly Data

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
DSRI 3.79070.66980.5740.39120.29730.97041.00971.03110.99070.9895
GMI 1.2271.00320.98010.93430.86310.96580.95220.9460.94410.9667
AQI 0.95731.0111.03811.05521.03560.98641.04681.07421.05381.063
SGI 0.26861.03951.26191.63082.20490.99750.99361.01361.01981.0406
DEPI 0.97260.65290.67520.70950.77111.28151.24071.20381.1441.0621
SGAI 1.25850.97410.96150.91330.85190.99410.98320.99481.0011.0127
LVGI 0.87580.77070.86210.87190.95491.1341.03531.04561.04781.0386
TATA -0.0193-0.0067-0.00040.0116-0.0069-0.0143-0.0222-0.0298-0.04-0.0411
M-score -0.56-2.73-2.62-2.41-2.13-2.61-2.57-2.57-2.67-2.65
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