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Agilent Technologies Inc (NYSE:A)
Beneish M-Score
-2.74 (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 -2.74 suggests that the company is not a manipulator.

A' s 10-Year Beneish M-Score Range
Min: -4.18   Max: -1.04
Current: -2.74

-4.18
-1.04

During the past 13 years, the highest Beneish M-Score of Agilent Technologies Inc was -1.04. The lowest was -4.18. And the median was -2.75.


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 * 0.9889+0.528 * 1.0023+0.404 * 0.9297+0.892 * 0.9823+0.115 * 0.8945
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0311+4.679 * -0.0346-0.327 * 1.074
=-2.74

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

This Year (Jan14) TTM:Last Year (Jan13) TTM:
Accounts Receivable was $849 Mil.
Revenue was 1679 + 1718 + 1652 + 1732 = $6,781 Mil.
Gross Profit was 883 + 908 + 856 + 891 = $3,538 Mil.
Total Current Assets was $5,073 Mil.
Total Assets was $10,638 Mil.
Property, Plant and Equipment(Net PPE) was $1,129 Mil.
Depreciation, Depletion and Amortization(DDA) was $374 Mil.
Selling, General & Admin. Expense(SGA) was $1,884 Mil.
Total Current Liabilities was $1,549 Mil.
Long-Term Debt was $2,695 Mil.
Net Income was 195 + 211 + 168 + 166 = $740 Mil.
Non Operating Income was 0 + -3 + 1 + 9 = $7 Mil.
Cash Flow from Operations was 194 + 377 + 215 + 315 = $1,101 Mil.
Accounts Receivable was $874 Mil.
Revenue was 1680 + 1767 + 1723 + 1733 = $6,903 Mil.
Gross Profit was 880 + 922 + 890 + 918 = $3,610 Mil.
Total Current Assets was $4,712 Mil.
Total Assets was $10,653 Mil.
Property, Plant and Equipment(Net PPE) was $1,163 Mil.
Depreciation, Depletion and Amortization(DDA) was $333 Mil.
Selling, General & Admin. Expense(SGA) was $1,860 Mil.
Total Current Liabilities was $1,846 Mil.
Long-Term Debt was $2,111 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)
=(849 / 6781) / (874 / 6903)
=0.12520277 / 0.12661162
=0.9889

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)
=(908 / 6903) / (883 / 6781)
=0.52296103 / 0.52175195
=1.0023

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 - (5073 + 1129) / 10638) / (1 - (4712 + 1163) / 10653)
=0.41699568 / 0.44851216
=0.9297

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
=6781 / 6903
=0.9823

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))
=(333 / (333 + 1163)) / (374 / (374 + 1129))
=0.22259358 / 0.24883566
=0.8945

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)
=(1884 / 6781) / (1860 / 6903)
=0.27783513 / 0.26944807
=1.0311

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)
=((2695 + 1549) / 10638) / ((2111 + 1846) / 10653)
=0.39894717 / 0.37144466
=1.074

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
=(740 - 7 - 1101) / 10638
=-0.0346

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 -2.74 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

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
DSRI 0.71160.83670.96150.97450.98340.99571.20220.81451.03520.9849
GMI 0.86470.94130.94410.97570.98961.08220.95041.00891.01521.0082
AQI 1.37311.02431.66661.14061.04970.86070.71261.04321.64270.9498
SGI 1.01971.02831.06151.08991.06530.77611.21491.21511.03670.9889
DEPI 1.12891.01920.96680.93430.98191.2190.94140.85040.97810.8318
SGAI 0.82570.96991.0440.93960.9371.21720.89960.84980.96881.0463
LVGI 0.84280.70111.43761.20410.99331.07291.0280.76520.91351.0588
TATA -0.0496-0.09690.2163-0.0445-0.0133-0.0602-0.0243-0.031-0.0086-0.0408
M-score -2.78-2.97-1.36-2.65-2.47-3.01-2.36-2.50-2.16-2.76

Agilent Technologies Inc Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
DSRI 0.81450.81420.89810.98191.03521.0470.99090.91940.98490.9889
GMI 1.00891.00711.00161.00791.01521.0191.02321.0171.00821.0023
AQI 1.04320.85280.86761.56271.64271.71691.70730.98120.94980.9297
SGI 1.21511.17061.10251.05511.03671.02561.01691.00180.98890.9823
DEPI 0.85040.93471.00951.0670.97810.89920.83020.77990.83180.8945
SGAI 0.84980.86530.87950.92710.96881.00541.04831.05381.04631.0311
LVGI 0.76520.90650.9250.92910.91350.930.94891.06091.05881.074
TATA -0.031-0.0303-0.0214-0.0255-0.0086-0.0216-0.0259-0.0326-0.0408-0.0346
M-score -2.50-2.65-2.59-2.29-2.16-2.20-2.31-2.76-2.76-2.74
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