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Aecom (NYSE:ACM)
Beneish M-Score
-1.56 (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.

Aecom has a M-score of -1.55 signals that the company is a manipulator.

ACM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.21   Max: 0.17
Current: -1.56

-3.21
0.17

During the past 13 years, the highest Beneish M-Score of Aecom was 0.17. The lowest was -3.21. And the median was -2.30.


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 Aecom 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 * 0.8482+0.528 * 1.5349+0.404 * 1.283+0.892 * 2.1498+0.115 * 0.5478
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6553+4.679 * -0.0644-0.327 * 1.1946
=-1.55

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $4,841 Mil.
Revenue was 4723.637 + 4549.578 + 4506.197 + 4186.035 = $17,965 Mil.
Gross Profit was 170.628 + 126.518 + 103.312 + 164.223 = $565 Mil.
Total Current Assets was $6,246 Mil.
Total Assets was $14,014 Mil.
Property, Plant and Equipment(Net PPE) was $699 Mil.
Depreciation, Depletion and Amortization(DDA) was $599 Mil.
Selling, General & Admin. Expense(SGA) was $114 Mil.
Total Current Liabilities was $4,836 Mil.
Long-Term Debt was $4,447 Mil.
Net Income was 1.056 + -17.192 + 0.266 + -103.503 = $-119 Mil.
Non Operating Income was 7.47 + 10.128 + -1.038 + 2.579 = $19 Mil.
Cash Flow from Operations was 278.029 + 153.802 + 49.96 + 282.642 = $764 Mil.
Accounts Receivable was $2,655 Mil.
Revenue was 2562.529 + 1968.155 + 1872.224 + 1953.875 = $8,357 Mil.
Gross Profit was 129.031 + 108.54 + 87.407 + 78.198 = $403 Mil.
Total Current Assets was $3,434 Mil.
Total Assets was $6,123 Mil.
Property, Plant and Equipment(Net PPE) was $282 Mil.
Depreciation, Depletion and Amortization(DDA) was $95 Mil.
Selling, General & Admin. Expense(SGA) was $81 Mil.
Total Current Liabilities was $2,456 Mil.
Long-Term Debt was $940 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)
=(4841.45 / 17965.447) / (2654.976 / 8356.783)
=0.26948675 / 0.31770312
=0.8482

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)
=(126.518 / 8356.783) / (170.628 / 17965.447)
=0.04824536 / 0.0314315
=1.5349

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 - (6246.085 + 699.322) / 14014.298) / (1 - (3434.113 + 281.979) / 6123.377)
=0.50440564 / 0.39313029
=1.283

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
=17965.447 / 8356.783
=2.1498

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))
=(95.394 / (95.394 + 281.979)) / (599.265 / (599.265 + 699.322))
=0.25278438 / 0.46147466
=0.5478

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)
=(113.975 / 17965.447) / (80.908 / 8356.783)
=0.00634412 / 0.00968172
=0.6553

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)
=((4446.527 + 4836.052) / 14014.298) / ((939.565 + 2455.769) / 6123.377)
=0.66236489 / 0.55448717
=1.1946

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
=(-119.373 - 19.139 - 764.433) / 14014.298
=-0.0644

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.

Aecom has a M-score of -1.55 signals that the company is likely to 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.

Aecom Annual Data

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
DSRI 0.96531.22360.89831.17070.89320.98450.4592.3740.8471
GMI 0.96614.96190.96230.87311.1321.13120.93011.14391.6217
AQI 0.91041.09231.01681.09391.10020.90471.03270.98411.283
SGI 1.23841.2261.1781.06971.22791.02250.99211.02492.1527
DEPI 1.10761.25910.81641.15040.91961.05830.92851.0230.5478
SGAI 1.01520.05661.04511.18840.66570.87621.21240.81120.6544
LVGI 0.73461.23770.88651.17730.96851.03111.05240.99971.1946
TATA -0.02420.0017-0.01070.0130.024-0.0887-0.0305-0.0218-0.067
M-score -2.370.18-2.47-2.30-2.09-2.84-3.21-1.19-1.52

Aecom Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.4590.9851.03091.07612.3741.54511.23251.02140.8482
GMI 0.93010.89730.96451.05741.14391.20421.4371.59011.5349
AQI 1.03271.03331.06761.02080.98411.2911.24411.24651.283
SGI 0.99210.98580.97410.96521.02491.30891.65852.00732.1498
DEPI 0.92850.95010.96881.05491.0231.4890.79220.64740.5478
SGAI 1.21241.24991.1491.01560.81120.70490.58140.58060.6553
LVGI 1.05241.00050.96110.94840.99971.14971.22451.24951.1946
TATA -0.0305-0.0384-0.0214-0.0184-0.0218-0.031-0.0401-0.0514-0.0644
M-score -3.21-2.78-2.58-2.47-1.19-1.56-1.56-1.44-1.55
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