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AECOM Technology Corp (NYSE:ACM)
Beneish M-Score
-2.41 (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 Technology Corp has a M-score of -2.41 suggests that the company is not a manipulator.

ACM' s 10-Year Beneish M-Score Range
Min: -3.21   Max: 0.13
Current: -2.41

-3.21
0.13

During the past 13 years, the highest Beneish M-Score of AECOM Technology Corp was 0.13. The lowest was -3.21. And the median was -2.39.


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 Technology Corp 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 * 1.0518+0.528 * 1.1439+0.404 * 0.9841+0.892 * 1.0249+0.115 * 1.023
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8112+4.679 * -0.0218-0.327 * 0.9997
=-2.41

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $1,176 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.
Net Income was 64.026 + 69.24 + 40.192 + 56.396 = $230 Mil.
Non Operating Income was 1.892 + 1.034 + -0.195 + 0.017 = $3 Mil.
Cash Flow from Operations was 174.916 + 79.713 + -31.391 + 137.387 = $361 Mil.
Accounts Receivable was $1,091 Mil.
Revenue was 2079.087 + 2067.49 + 1989.646 + 2017.272 = $8,153 Mil.
Gross Profit was 140.213 + 131.814 + 99.843 + 78.118 = $450 Mil.
Total Current Assets was $3,132 Mil.
Total Assets was $5,666 Mil.
Property, Plant and Equipment(Net PPE) was $271 Mil.
Depreciation, Depletion and Amortization(DDA) was $94 Mil.
Selling, General & Admin. Expense(SGA) was $97 Mil.
Total Current Liabilities was $2,054 Mil.
Long-Term Debt was $1,089 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)
=(1176.276 / 8356.783) / (1091.162 / 8153.495)
=0.14075704 / 0.13382752
=1.0518

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)
=(108.54 / 8153.495) / (129.031 / 8356.783)
=0.05518958 / 0.04824536
=1.1439

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 - (3434.113 + 281.979) / 6123.377) / (1 - (3131.602 + 270.672) / 5665.623)
=0.39313029 / 0.39948811
=0.9841

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
=8356.783 / 8153.495
=1.0249

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))
=(94.406 / (94.406 + 270.672)) / (95.394 / (95.394 + 281.979))
=0.25859131 / 0.25278438
=1.023

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)
=(80.908 / 8356.783) / (97.318 / 8153.495)
=0.00968172 / 0.01193574
=0.8112

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)
=((939.565 + 2455.769) / 6123.377) / ((1089.06 + 2053.549) / 5665.623)
=0.55448717 / 0.55468022
=0.9997

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
=(229.854 - 2.748 - 360.625) / 6123.377
=-0.0218

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 Technology Corp has a M-score of -2.41 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.

AECOM Technology Corp Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
DSRI 0.90830.96531.22460.89761.17070.89320.98450.4591.0518
GMI 1.06830.96614.95650.96340.87311.1321.13120.93011.1439
AQI 0.95710.91041.10211.00771.09391.10020.90471.03270.9841
SGI 1.42841.23841.22591.17811.06971.22791.02250.99211.0249
DEPI 0.65481.10761.25820.8171.15040.91961.05830.92851.023
SGAI 0.97391.01520.05661.0451.18840.66570.87621.21240.8112
LVGI 0.91310.73461.25240.87611.17730.96851.03111.05240.9997
TATA -0.0406-0.0242-0.0074-0.00430.0130.0243-0.0884-0.0305-0.0218
M-score -2.36-2.370.13-2.44-2.30-2.09-2.84-3.21-2.41

AECOM Technology Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.94230.98450.97810.91490.95390.4590.9851.03091.07611.0518
GMI 1.14811.13121.1130.98550.91030.93010.89730.96451.05741.1439
AQI 1.00380.90470.92930.92990.94321.03271.03331.06761.02080.9841
SGI 1.06521.02251.00930.99760.98840.99210.98580.97410.96521.0249
DEPI 1.09011.05831.00920.98550.8990.92850.95010.96881.05491.023
SGAI 0.75810.87620.88851.02451.11051.21241.24991.1491.10470.8112
LVGI 0.99461.03111.08351.07331.10191.05241.00050.96110.94840.9997
TATA -0.0382-0.0884-0.1003-0.1139-0.0975-0.0304-0.0384-0.0214-0.0184-0.0218
M-score -2.52-2.84-2.94-3.16-3.12-3.21-2.78-2.58-2.48-2.41
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