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Agilent Technologies Inc (NYSE:A)
Beneish M-Score
-2.73 (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 -2.73 suggests that the company is not a manipulator.

A' s 10-Year Beneish M-Score Range
Min: -4.33   Max: -1.04
Current: -2.73

-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 -2.68.


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 * 0.6994+0.528 * 1.017+0.404 * 1.0381+0.892 * 1.0357+0.115 * 0.6752
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.063+4.679 * -0.0063-0.327 * 0.8621
=-2.73

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

This Year (Jan15) TTM:Last Year (Jan14) TTM:
Accounts Receivable was $615 Mil.
Revenue was 1026 + 1805 + 1766 + 1731 = $6,328 Mil.
Gross Profit was 513 + 897 + 914 + 899 = $3,223 Mil.
Total Current Assets was $3,654 Mil.
Total Assets was $7,519 Mil.
Property, Plant and Equipment(Net PPE) was $610 Mil.
Depreciation, Depletion and Amortization(DDA) was $356 Mil.
Selling, General & Admin. Expense(SGA) was $1,865 Mil.
Total Current Liabilities was $928 Mil.
Long-Term Debt was $1,658 Mil.
Net Income was 72 + 23 + 147 + 139 = $381 Mil.
Non Operating Income was 12 + -65 + -20 + 4 = $-69 Mil.
Cash Flow from Operations was -20 + 164 + 28 + 325 = $497 Mil.
Accounts Receivable was $849 Mil.
Revenue was 1008 + 1718 + 1652 + 1732 = $6,110 Mil.
Gross Profit was 510 + 908 + 856 + 891 = $3,165 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 $1,694 Mil.
Total Current Liabilities was $1,549 Mil.
Long-Term Debt was $2,695 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)
=(615 / 6328) / (849 / 6110)
=0.0971871 / 0.13895254
=0.6994

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)
=(897 / 6110) / (513 / 6328)
=0.51800327 / 0.50932364
=1.017

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 - (3654 + 610) / 7519) / (1 - (5073 + 1129) / 10638)
=0.43290331 / 0.41699568
=1.0381

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
=6328 / 6110
=1.0357

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))
=(374 / (374 + 1129)) / (356 / (356 + 610))
=0.24883566 / 0.36853002
=0.6752

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)
=(1865 / 6328) / (1694 / 6110)
=0.29472187 / 0.27725041
=1.063

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)
=((1658 + 928) / 7519) / ((2695 + 1549) / 10638)
=0.34392871 / 0.39894717
=0.8621

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
=(381 - -69 - 497) / 7519
=-0.0063

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 -2.73 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

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DSRI 1.03521.0470.99090.91940.98491.09751.11381.11781.17520.6994
GMI 1.01521.0191.02321.0171.00821.00960.99951.00071.02141.017
AQI 1.64271.71691.70730.98120.94980.92970.93690.95730.91341.0381
SGI 1.03671.02561.01691.00180.98890.88510.88510.9110.93041.0357
DEPI 0.97810.89920.83020.77990.83180.89450.96490.97260.95520.6752
SGAI 0.96881.00541.04831.05381.04631.0291.01421.02421.05941.063
LVGI 0.91350.930.94891.06091.05881.0741.05540.87581.0240.8621
TATA -0.0086-0.0216-0.0259-0.0326-0.0408-0.0346-0.0363-0.0205-0.0116-0.0063
M-score -2.16-2.20-2.31-2.76-2.76-2.72-2.70-2.53-2.48-2.73
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