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AECOM (NYSE:ACM)
Beneish M-Score
-3.21 (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 -3.21 suggests that the company is not a manipulator.

ACM' s Beneish M-Score Range Over the Past 10 Years
Min: -3.21   Max: 0.18
Current: -3.21

-3.21
0.18

During the past 13 years, the highest Beneish M-Score of AECOM was 0.18. The lowest was -3.21. And the median was -2.29.


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 * 0.4097+0.528 * 0.8336+0.404 * 1.0009+0.892 * 1.1253+0.115 * 0.9106
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9594+4.679 * -0.044-0.327 * 1.0102
=-3.21

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $2,298 Mil.
Revenue was 4408.782 + 4381.296 + 4297.651 + 4723.637 = $17,811 Mil.
Gross Profit was 171.343 + 183.444 + 140.858 + 170.628 = $666 Mil.
Total Current Assets was $6,172 Mil.
Total Assets was $13,878 Mil.
Property, Plant and Equipment(Net PPE) was $625 Mil.
Depreciation, Depletion and Amortization(DDA) was $464 Mil.
Selling, General & Admin. Expense(SGA) was $112 Mil.
Total Current Liabilities was $5,286 Mil.
Long-Term Debt was $3,941 Mil.
Net Income was 67.444 + 41.828 + -20.367 + 1.056 = $90 Mil.
Non Operating Income was 1.498 + 0.746 + -38.011 + 7.47 = $-28 Mil.
Cash Flow from Operations was 260.05 + 113.151 + 78.055 + 278.029 = $729 Mil.
Accounts Receivable was $4,985 Mil.
Revenue was 4549.578 + 4506.197 + 4210.468 + 2562.529 = $15,829 Mil.
Gross Profit was 126.518 + 103.312 + 134.73 + 129.031 = $494 Mil.
Total Current Assets was $6,227 Mil.
Total Assets was $14,236 Mil.
Property, Plant and Equipment(Net PPE) was $751 Mil.
Depreciation, Depletion and Amortization(DDA) was $476 Mil.
Selling, General & Admin. Expense(SGA) was $104 Mil.
Total Current Liabilities was $4,767 Mil.
Long-Term Debt was $4,602 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)
=(2298.1 / 17811.366) / (4985.309 / 15828.772)
=0.12902435 / 0.31495235
=0.4097

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)
=(493.591 / 15828.772) / (666.273 / 17811.366)
=0.03118315 / 0.03740718
=0.8336

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 - (6171.895 + 624.545) / 13878.327) / (1 - (6227.37 + 751.118) / 14236.126)
=0.51028391 / 0.50980428
=1.0009

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
=17811.366 / 15828.772
=1.1253

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))
=(476.068 / (476.068 + 751.118)) / (463.581 / (463.581 + 624.545))
=0.38793467 / 0.42603614
=0.9106

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)
=(112.379 / 17811.366) / (104.1 / 15828.772)
=0.0063094 / 0.00657663
=0.9594

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)
=((3941.15 + 5286.219) / 13878.327) / ((4602.483 + 4767.207) / 14236.126)
=0.66487618 / 0.6581629
=1.0102

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
=(89.961 - -28.297 - 729.285) / 13878.327
=-0.044

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 -3.21 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 Annual Data

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
DSRI 0.96531.22360.89831.17070.89320.98450.4592.3740.8471
GMI 0.96614.96190.96230.87311.1321.13120.93011.14391.6217
AQI 0.91041.09231.01681.09391.10020.90471.03270.98411.283
SGI 1.23841.2261.1781.06971.22791.02250.99211.02492.1527
DEPI 1.10761.25910.81641.15040.91961.05830.92851.0230.5478
SGAI 1.01520.05661.04511.18840.66570.87621.21240.81120.6544
LVGI 0.73461.23770.88651.17730.96851.03111.05240.99971.1946
TATA -0.01290.0017-0.01070.0130.024-0.0887-0.0305-0.0218-0.067
M-score -2.320.18-2.47-2.30-2.09-2.84-3.21-1.19-1.52

AECOM Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.03091.07612.3741.54151.23021.01980.84710.57920.36650.4097
GMI 0.96451.05741.14391.28441.52891.68771.62171.44651.03710.8336
AQI 1.06761.02080.98411.2911.24411.24651.2831.01610.98371.0009
SGI 0.97410.96521.02491.31191.66162.01042.15271.70321.35521.1253
DEPI 0.96881.05491.0231.19790.79220.64740.54780.43790.69190.9106
SGAI 1.1491.01560.81120.70330.58030.57980.65440.69550.84060.9594
LVGI 0.96110.94840.99971.14971.22451.24951.19461.04581.0281.0102
TATA -0.0214-0.0184-0.0218-0.0334-0.0426-0.0539-0.067-0.0425-0.0428-0.044
M-score -2.58-2.47-1.19-1.57-1.52-1.40-1.52-2.22-2.95-3.21
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