Switch to:
AECOM Technology Corporation (NYSE:ACM)
Beneish M-Score
-2.78 (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 Corporation has a M-score of -2.78 suggests that the company is not a manipulator.

ACM' s 10-Year Beneish M-Score Range
Min: -3.17   Max: 0.17
Current: -2.78

-3.17
0.17

During the past 12 years, the highest Beneish M-Score of AECOM Technology Corporation was 0.17. The lowest was -3.17. And the median was -2.32.


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 Corporation 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 * 0.9845+0.528 * 0.8973+0.404 * 1.0333+0.892 * 0.9858+0.115 * 0.9501
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2499+4.679 * -0.0384-0.327 * 1.0005
=-2.78

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $2,420 Mil.
Revenue was 1953.875 + 2079.087 + 2067.49 + 1989.646 = $8,090 Mil.
Gross Profit was 78.198 + 140.213 + 131.814 + 99.843 = $450 Mil.
Total Current Assets was $3,249 Mil.
Total Assets was $5,837 Mil.
Property, Plant and Equipment(Net PPE) was $276 Mil.
Depreciation, Depletion and Amortization(DDA) was $93 Mil.
Selling, General & Admin. Expense(SGA) was $99 Mil.
Total Current Liabilities was $2,160 Mil.
Long-Term Debt was $1,113 Mil.
Net Income was 56.396 + 76.568 + 70.755 + 53.811 = $258 Mil.
Non Operating Income was 0.017 + 1.48 + 1.215 + 0.156 = $3 Mil.
Cash Flow from Operations was 137.387 + 160.147 + 96.117 + 85.245 = $479 Mil.
Accounts Receivable was $2,494 Mil.
Revenue was 2017.272 + 2082.911 + 2095.138 + 2010.951 = $8,206 Mil.
Gross Profit was 78.118 + 144.158 + 111.238 + 76.117 = $410 Mil.
Total Current Assets was $3,259 Mil.
Total Assets was $5,808 Mil.
Property, Plant and Equipment(Net PPE) was $323 Mil.
Depreciation, Depletion and Amortization(DDA) was $101 Mil.
Selling, General & Admin. Expense(SGA) was $80 Mil.
Total Current Liabilities was $2,233 Mil.
Long-Term Debt was $1,022 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)
=(2420.248 / 8090.098) / (2493.75 / 8206.272)
=0.29916177 / 0.30388342
=0.9845

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)
=(140.213 / 8206.272) / (78.198 / 8090.098)
=0.04991682 / 0.05563196
=0.8973

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 - (3248.847 + 275.897) / 5837.421) / (1 - (3258.532 + 322.714) / 5808.025)
=0.39618129 / 0.38339694
=1.0333

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
=8090.098 / 8206.272
=0.9858

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))
=(101.328 / (101.328 + 322.714)) / (92.702 / (92.702 + 275.897))
=0.23895746 / 0.25149824
=0.9501

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)
=(99.061 / 8090.098) / (80.394 / 8206.272)
=0.01224472 / 0.00979665
=1.2499

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)
=((1113.452 + 2159.67) / 5837.421) / ((1021.772 + 2233.124) / 5808.025)
=0.56071371 / 0.56041357
=1.0005

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
=(257.53 - 2.868 - 478.896) / 5837.421
=-0.0384

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 Corporation has a M-score of -2.78 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 Corporation Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
DSRI 0.90830.96531.22480.89741.17070.91020.96610.9854
GMI 1.06830.96614.96190.96230.87311.1321.13120.9301
AQI 0.95710.91041.09231.01681.09391.10020.90471.0327
SGI 1.42841.23841.2261.1781.06971.22791.02250.9921
DEPI 0.65481.10761.25910.81641.15040.91961.05830.9285
SGAI 0.97391.01520.05661.04511.18840.66570.87621.2124
LVGI 0.91310.73461.23770.88651.17730.96851.03111.0524
TATA -0.0406-0.02420.0017-0.01070.0130.0243-0.0887-0.0305
M-score -2.36-2.370.18-2.47-2.30-2.08-2.86-2.73

AECOM Technology Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.91020.90780.94980.90790.96610.96190.90920.94890.98540.9845
GMI 1.1321.16361.16121.14811.13121.1130.98550.91030.93010.8973
AQI 1.10020.98520.97871.00380.90470.92930.92990.94321.03271.0333
SGI 1.22791.16131.11841.06521.02251.00930.99760.98840.99210.9858
DEPI 0.91960.97141.06461.09011.05831.00920.98550.8990.92850.9501
SGAI 0.66570.69010.7140.75810.87620.88851.02451.11051.21241.2499
LVGI 0.96850.98791.01770.99461.03111.08351.07331.10191.05241.0005
TATA 0.0243-0.0069-0.0052-0.0384-0.0887-0.1006-0.1141-0.0977-0.0305-0.0384
M-score -2.08-2.32-2.32-2.55-2.86-2.95-3.17-3.13-2.73-2.78
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide