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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 -1.56 signals that the company is a manipulator.

ACM' s 10-Year Beneish M-Score Range
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 * 1.2325+0.528 * 1.437+0.404 * 1.2441+0.892 * 1.6585+0.115 * 0.7922
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.5814+4.679 * -0.0401-0.327 * 1.2245
=-1.56

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $4,785 Mil.
Revenue was 4506.197 + 4186.035 + 2562.529 + 1968.155 = $13,223 Mil.
Gross Profit was 103.312 + 164.223 + 129.031 + 108.54 = $505 Mil.
Total Current Assets was $5,985 Mil.
Total Assets was $14,016 Mil.
Property, Plant and Equipment(Net PPE) was $793 Mil.
Depreciation, Depletion and Amortization(DDA) was $366 Mil.
Selling, General & Admin. Expense(SGA) was $95 Mil.
Total Current Liabilities was $4,461 Mil.
Long-Term Debt was $4,692 Mil.
Net Income was 0.266 + -103.503 + 64.026 + 69.24 = $30 Mil.
Non Operating Income was -1.038 + 2.579 + 1.892 + 1.034 = $4 Mil.
Cash Flow from Operations was 49.96 + 282.642 + 174.916 + 79.713 = $587 Mil.
Accounts Receivable was $2,341 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.



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)
=(4785.335 / 13222.916) / (2341.025 / 7972.676)
=0.3618971 / 0.29363102
=1.2325

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)
=(164.223 / 7972.676) / (103.312 / 13222.916)
=0.05489148 / 0.03819929
=1.437

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 - (5985.183 + 792.558) / 14016.005) / (1 - (3023.901 + 277.934) / 5645.278)
=0.51642847 / 0.41511561
=1.2441

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
=13222.916 / 7972.676
=1.6585

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))
=(92.709 / (92.709 + 277.934)) / (365.696 / (365.696 + 792.558))
=0.25013018 / 0.3157304
=0.7922

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)
=(94.749 / 13222.916) / (98.257 / 7972.676)
=0.00716551 / 0.01232422
=0.5814

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)
=((4691.571 + 4461.104) / 14016.005) / ((1008.891 + 2001.685) / 5645.278)
=0.65301596 / 0.53329101
=1.2245

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
=(30.029 - 4.467 - 587.231) / 14016.005
=-0.0401

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 -1.56 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

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
DSRI 0.90830.96531.22360.89831.17070.89320.98450.4591.0518
GMI 1.06830.96614.96190.96230.87311.1321.13120.93011.1439
AQI 0.95710.91041.09231.01681.09391.10020.90471.03270.9841
SGI 1.42841.23841.2261.1781.06971.22791.02250.99211.0249
DEPI 0.65481.10761.25910.81641.15040.91961.05830.92851.023
SGAI 0.97391.01520.05661.04511.18840.66570.87621.21240.8112
LVGI 0.91310.73461.23770.88651.17730.96851.03111.05240.9997
TATA -0.0406-0.02420.0017-0.01070.0130.0243-0.0887-0.0305-0.0218
M-score -2.36-2.370.18-2.47-2.30-2.09-2.84-3.21-2.41

Aecom Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.97810.91490.95390.4590.9851.03091.07611.05181.54511.2325
GMI 1.1130.98550.91030.93010.89730.96451.05741.14391.20421.437
AQI 0.92930.92990.94321.03271.03331.06761.02080.98411.2911.2441
SGI 1.00930.99760.98840.99210.98580.97410.96521.02491.30891.6585
DEPI 1.00920.98550.8990.92850.95010.96881.05491.0231.4890.7922
SGAI 0.88851.02451.11051.21241.24991.1491.10470.81120.70490.5814
LVGI 1.08351.07331.10191.05241.00050.96110.94840.99971.14971.2245
TATA -0.1006-0.1141-0.0977-0.0305-0.0384-0.0214-0.0184-0.0218-0.031-0.0401
M-score -2.94-3.16-3.12-3.21-2.78-2.58-2.48-2.41-1.56-1.56
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