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Agilent Technologies Inc (NYSE:A)
Beneish M-Score
-2.63 (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 -2.63 suggests that the company is not a manipulator.

A' s 10-Year Beneish M-Score Range
Min: -4.33   Max: -1.04
Current: -2.63

-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 * 0.4436+0.528 * 0.9866+0.404 * 1.0356+0.892 * 1.4777+0.115 * 0.7711
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0366+4.679 * -0.0123-0.327 * 0.9549
=-2.63

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

This Year (Jul15) TTM:Last Year (Jul14) TTM:
Accounts Receivable was $584 Mil.
Revenue was 1014 + 963 + 1026 + 3976 = $6,979 Mil.
Gross Profit was 513 + 480 + 513 + 2096 = $3,602 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 $2,048 Mil.
Total Current Liabilities was $853 Mil.
Long-Term Debt was $1,655 Mil.
Net Income was 103 + 83 + 72 + 23 = $281 Mil.
Non Operating Income was -1 + 4 + 12 + -63 = $-48 Mil.
Cash Flow from Operations was 91 + 183 + -20 + 164 = $418 Mil.
Accounts Receivable was $891 Mil.
Revenue was 1009 + 988 + 1008 + 1718 = $4,723 Mil.
Gross Profit was 502 + 485 + 510 + 908 = $2,405 Mil.
Total Current Assets was $4,834 Mil.
Total Assets was $10,380 Mil.
Property, Plant and Equipment(Net PPE) was $1,142 Mil.
Depreciation, Depletion and Amortization(DDA) was $386 Mil.
Selling, General & Admin. Expense(SGA) was $1,337 Mil.
Total Current Liabilities was $1,579 Mil.
Long-Term Debt was $2,181 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)
=(584 / 6979) / (891 / 4723)
=0.08367961 / 0.18865128
=0.4436

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)
=(480 / 4723) / (513 / 6979)
=0.50921025 / 0.51611979
=0.9866

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 - (3478 + 587) / 7251) / (1 - (4834 + 1142) / 10380)
=0.43938767 / 0.42427746
=1.0356

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
=6979 / 4723
=1.4777

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))
=(386 / (386 + 1142)) / (286 / (286 + 587))
=0.2526178 / 0.32760596
=0.7711

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)
=(2048 / 6979) / (1337 / 4723)
=0.29345178 / 0.28308279
=1.0366

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)
=((1655 + 853) / 7251) / ((2181 + 1579) / 10380)
=0.34588333 / 0.36223507
=0.9549

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
=(281 - -48 - 418) / 7251
=-0.0123

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 -2.63 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

Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15
DSRI 0.99090.91940.98491.09751.2681.47281.06230.63240.49080.4436
GMI 1.02321.0171.00821.00961.00961.02031.01271.00820.99850.9866
AQI 1.70730.98120.94980.92970.93690.95730.91341.03811.05521.0356
SGI 1.01691.00180.98890.88510.77750.69141.02931.14551.29971.4777
DEPI 0.83020.77990.83180.89450.96490.97260.95520.67520.70950.7711
SGAI 1.04831.05381.04631.0291.01351.01991.05571.0591.04731.0366
LVGI 0.94891.06091.05881.0741.05540.87581.0240.86210.87190.9549
TATA -0.0259-0.0326-0.0408-0.0346-0.0362-0.0203-0.0116-0.00630.0051-0.0123
M-score -2.31-2.76-2.76-2.72-2.65-2.39-2.50-2.70-2.64-2.63
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