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Agilent Technologies Inc (NYSE:A)
Beneish M-Score
-2.57 (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 -2.57 suggests that the company is not a manipulator.

A' s Beneish M-Score Range Over the Past 10 Years
Min: -4.33   Max: -0.47
Current: -2.57

-4.33
-0.47

During the past 13 years, the highest Beneish M-Score of Agilent Technologies Inc was -0.47. The lowest was -4.33. And the median was -2.61.


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 * 1.0311+0.528 * 0.946+0.404 * 1.0742+0.892 * 1.0136+0.115 * 1.2038
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9948+4.679 * -0.0305-0.327 * 1.0456
=-2.57

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

This Year (Apr16) TTM:Last Year (Apr15) TTM:
Accounts Receivable was $602 Mil.
Revenue was 1019 + 1028 + 1035 + 1014 = $4,096 Mil.
Gross Profit was 530 + 537 + 535 + 513 = $2,115 Mil.
Total Current Assets was $3,488 Mil.
Total Assets was $7,640 Mil.
Property, Plant and Equipment(Net PPE) was $610 Mil.
Depreciation, Depletion and Amortization(DDA) was $252 Mil.
Selling, General & Admin. Expense(SGA) was $1,209 Mil.
Total Current Liabilities was $1,133 Mil.
Long-Term Debt was $1,654 Mil.
Net Income was 91 + 123 + 143 + 103 = $460 Mil.
Non Operating Income was 1 + 3 + 2 + -1 = $5 Mil.
Cash Flow from Operations was 256 + 104 + 237 + 91 = $688 Mil.
Accounts Receivable was $576 Mil.
Revenue was 963 + 1026 + 1043 + 1009 = $4,041 Mil.
Gross Profit was 480 + 513 + 479 + 502 = $1,974 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 $1,199 Mil.
Total Current Liabilities was $930 Mil.
Long-Term Debt was $1,656 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)
=(602 / 4096) / (576 / 4041)
=0.14697266 / 0.14253898
=1.0311

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)
=(1974 / 4041) / (2115 / 4096)
=0.48849295 / 0.51635742
=0.946

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 - (3488 + 610) / 7640) / (1 - (3620 + 593) / 7412)
=0.46361257 / 0.43159741
=1.0742

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
=4096 / 4041
=1.0136

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))
=(322 / (322 + 593)) / (252 / (252 + 610))
=0.35191257 / 0.29234339
=1.2038

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)
=(1209 / 4096) / (1199 / 4041)
=0.29516602 / 0.29670874
=0.9948

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)
=((1654 + 1133) / 7640) / ((1656 + 930) / 7412)
=0.36479058 / 0.34889369
=1.0456

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
=(460 - 5 - 688) / 7640
=-0.0305

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 -2.57 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

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
DSRI 1.05470.97450.98340.99571.20220.81451.03520.98490.67651.6736
GMI 0.91820.97570.98961.08220.95041.00891.01521.00821.01271.0183
AQI 1.66661.14061.04970.86070.71261.04321.64270.94981.0110.9864
SGI 0.96771.08991.06530.77611.21491.21511.03670.98891.02930.5784
DEPI 0.99320.93430.98191.2190.94140.85040.97810.83180.65291.2815
SGAI 1.07010.93960.9371.21720.89960.84980.96881.04631.05571.0062
LVGI 1.43761.20410.99331.07291.0280.76520.91351.05880.77071.134
TATA 0.3554-0.0445-0.0133-0.0602-0.0243-0.031-0.0086-0.0408-0.0117-0.0143
M-score -0.73-2.65-2.47-3.01-2.36-2.50-2.16-2.76-2.77-2.31

Agilent Technologies Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
DSRI 2.08122.74583.79070.66980.5740.39120.29730.97041.00971.0311
GMI 1.09631.13741.2271.00320.98010.93430.86310.96580.95220.946
AQI 0.92970.93690.95731.0111.03811.05521.03560.98641.04681.0742
SGI 0.46680.3590.26861.03951.26191.63082.20490.99750.99361.0136
DEPI 0.89450.96490.97260.65290.67520.70950.77111.28151.24071.2038
SGAI 1.14961.1771.25850.97410.96150.91330.85190.99410.98320.9948
LVGI 1.0741.05540.87580.77070.86210.87190.95491.1341.03531.0456
TATA -0.0336-0.0352-0.0193-0.0067-0.00040.0116-0.0057-0.015-0.0229-0.0305
M-score -2.16-1.62-0.56-2.73-2.62-2.41-2.12-2.61-2.57-2.57
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