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AECOM Technology Corp (NYSE:ACM)
Beneish M-Score
-2.48 (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 -2.48 suggests that the company is not a manipulator.

ACM' s 10-Year Beneish M-Score Range
Min: -3.16   Max: 0.17
Current: -2.48

-3.16
0.17

During the past 12 years, the highest Beneish M-Score of AECOM Technology Corp was 0.17. The lowest was -3.16. And the median was -2.33.


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 * 1.0761+0.528 * 1.0574+0.404 * 1.0208+0.892 * 0.9652+0.115 * 1.0549
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1047+4.679 * -0.0184-0.327 * 0.9484
=-2.48

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $2,432 Mil.
Revenue was 1968.155 + 1872.224 + 1953.875 + 2079.087 = $7,873 Mil.
Gross Profit was 108.54 + 87.407 + 78.198 + 140.213 = $414 Mil.
Total Current Assets was $3,122 Mil.
Total Assets was $5,754 Mil.
Property, Plant and Equipment(Net PPE) was $279 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 $977 Mil.
Net Income was 69.24 + 40.192 + 56.396 + 76.568 = $242 Mil.
Non Operating Income was 1.034 + -0.195 + 0.017 + 1.48 = $2 Mil.
Cash Flow from Operations was 79.713 + -31.391 + 137.387 + 160.147 = $346 Mil.
Accounts Receivable was $2,341 Mil.
Revenue was 2067.49 + 1989.646 + 2017.272 + 2082.911 = $8,157 Mil.
Gross Profit was 131.814 + 99.843 + 78.118 + 144.158 = $454 Mil.
Total Current Assets was $3,050 Mil.
Total Assets was $5,539 Mil.
Property, Plant and Equipment(Net PPE) was $270 Mil.
Depreciation, Depletion and Amortization(DDA) was $97 Mil.
Selling, General & Admin. Expense(SGA) was $91 Mil.
Total Current Liabilities was $1,942 Mil.
Long-Term Debt was $1,135 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)
=(2431.517 / 7873.341) / (2341.146 / 8157.319)
=0.30882912 / 0.28699944
=1.0761

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)
=(87.407 / 8157.319) / (108.54 / 7873.341)
=0.05564733 / 0.05262798
=1.0574

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 - (3121.81 + 278.78) / 5753.742) / (1 - (3049.684 + 270.344) / 5539.368)
=0.40897767 / 0.40064859
=1.0208

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
=7873.341 / 8157.319
=0.9652

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))
=(97.452 / (97.452 + 270.344)) / (93.505 / (93.505 + 278.78))
=0.2649621 / 0.2511651
=1.0549

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)
=(97.151 / 7873.341) / (91.118 / 8157.319)
=0.01233923 / 0.01117009
=1.1047

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)
=((976.963 + 2053.86) / 5753.742) / ((1135.226 + 1941.556) / 5539.368)
=0.52675685 / 0.55543918
=0.9484

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
=(242.396 - 2.336 - 345.856) / 5753.742
=-0.0184

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 -2.48 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 0.90830.96531.22360.89861.17040.89320.98450.9854
GMI 1.06830.96614.96190.9620.87341.1321.13120.9301
AQI 0.95710.91041.09231.01681.09391.10020.90471.0327
SGI 1.42841.23841.2261.17761.071.22791.02250.9921
DEPI 0.65481.10761.25910.81641.15040.91961.05830.9285
SGAI 0.97391.01520.05661.04541.18810.66570.87621.2124
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 -2.36-2.370.18-2.47-2.30-2.09-2.84-2.73

AECOM Technology Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.98610.94230.98450.97810.91490.95390.98540.9851.03091.0761
GMI 1.16121.14811.13121.1130.98550.91030.93010.89730.96451.0574
AQI 0.97871.00380.90470.92930.92990.94321.03271.03331.06761.0208
SGI 1.11841.06521.02251.00930.99760.98840.99210.98580.97410.9652
DEPI 1.06461.09011.05831.00920.98550.8990.92850.95010.96881.0549
SGAI 0.7140.75810.87620.88851.02451.11051.21241.24991.1491.1047
LVGI 1.01770.99461.03111.08351.07331.10191.05241.00050.96110.9484
TATA -0.0052-0.0384-0.0887-0.1006-0.1141-0.0977-0.0305-0.0384-0.0214-0.0184
M-score -2.28-2.52-2.84-2.94-3.16-3.12-2.73-2.78-2.58-2.48
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