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AECOM Technology Corp (NYSE:ACM)
Beneish M-Score
-2.59 (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 -2.59 suggests that the company is not a manipulator.

ACM' s 10-Year Beneish M-Score Range
Min: -3.17   Max: 0.17
Current: -2.59

-3.17
0.17

During the past 12 years, the highest Beneish M-Score of AECOM Technology Corp was 0.17. The lowest was -3.17. And the median was -2.34.


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 * 1.0278+0.528 * 0.9645+0.404 * 1.0676+0.892 * 0.9741+0.115 * 0.9688
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.149+4.679 * -0.0214-0.327 * 0.9611
=-2.59

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $2,347 Mil.
Revenue was 1872.224 + 1953.875 + 2079.087 + 2067.49 = $7,973 Mil.
Gross Profit was 87.407 + 78.198 + 140.213 + 131.814 = $438 Mil.
Total Current Assets was $3,024 Mil.
Total Assets was $5,645 Mil.
Property, Plant and Equipment(Net PPE) was $278 Mil.
Depreciation, Depletion and Amortization(DDA) was $93 Mil.
Selling, General & Admin. Expense(SGA) was $98 Mil.
Total Current Liabilities was $2,002 Mil.
Long-Term Debt was $1,009 Mil.
Net Income was 40.192 + 56.396 + 76.568 + 70.755 = $244 Mil.
Non Operating Income was -0.195 + 0.017 + 1.48 + 1.215 = $3 Mil.
Cash Flow from Operations was -31.391 + 137.387 + 160.147 + 96.117 = $362 Mil.
Accounts Receivable was $2,344 Mil.
Revenue was 1989.646 + 2017.272 + 2082.911 + 2095.138 = $8,185 Mil.
Gross Profit was 99.843 + 78.118 + 144.158 + 111.238 = $433 Mil.
Total Current Assets was $3,162 Mil.
Total Assets was $5,685 Mil.
Property, Plant and Equipment(Net PPE) was $313 Mil.
Depreciation, Depletion and Amortization(DDA) was $100 Mil.
Selling, General & Admin. Expense(SGA) was $88 Mil.
Total Current Liabilities was $2,031 Mil.
Long-Term Debt was $1,123 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)
=(2347.147 / 7972.676) / (2344.381 / 8184.967)
=0.29439889 / 0.28642522
=1.0278

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)
=(78.198 / 8184.967) / (87.407 / 7972.676)
=0.05294548 / 0.05489148
=0.9645

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 - (3023.901 + 277.934) / 5645.278) / (1 - (3161.809 + 312.702) / 5685.144)
=0.41511561 / 0.3888438
=1.0676

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
=7972.676 / 8184.967
=0.9741

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))
=(100.005 / (100.005 + 312.702)) / (92.709 / (92.709 + 277.934))
=0.24231477 / 0.25013018
=0.9688

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)
=(98.257 / 7972.676) / (87.79 / 8184.967)
=0.01232422 / 0.01072576
=1.149

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)
=((1008.891 + 2001.685) / 5645.278) / ((1123.456 + 2030.958) / 5685.144)
=0.53329101 / 0.55485208
=0.9611

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
=(243.911 - 2.517 - 362.26) / 5645.278
=-0.0214

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 -2.59 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

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 Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.90780.94980.90790.96610.96190.90920.94890.98540.98451.0278
GMI 1.16361.16121.14811.13121.1130.98550.91030.93010.89730.9645
AQI 0.98520.97871.00380.90470.92930.92990.94321.03271.03331.0676
SGI 1.16131.11841.06521.02251.00930.99760.98840.99210.98580.9741
DEPI 0.97141.06461.09011.05831.00920.98550.8990.92850.95010.9688
SGAI 0.69010.7140.75810.87620.88851.02451.11051.21241.24991.149
LVGI 0.98791.01770.99461.03111.08351.07331.10191.05241.00050.9611
TATA -0.0069-0.0052-0.0384-0.0887-0.1006-0.1141-0.0977-0.0305-0.0384-0.0214
M-score -2.32-2.32-2.55-2.86-2.95-3.17-3.13-2.73-2.78-2.59
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