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AECOM (NYSE:ACM)
Beneish M-Score
-2.85 (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 -2.85 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: -2.85

-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 -2.39.


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 * 0.9657+0.528 * 0.8058+0.404 * 1.0227+0.892 * 0.9678+0.115 * 1.208
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0433+4.679 * -0.0499-0.327 * 0.9969
=-2.85

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $2,268 Mil.
Revenue was 4323.096 + 4408.782 + 4381.296 + 4297.651 = $17,411 Mil.
Gross Profit was 147.179 + 171.343 + 183.444 + 140.858 = $643 Mil.
Total Current Assets was $6,001 Mil.
Total Assets was $13,727 Mil.
Property, Plant and Equipment(Net PPE) was $645 Mil.
Depreciation, Depletion and Amortization(DDA) was $399 Mil.
Selling, General & Admin. Expense(SGA) was $115 Mil.
Total Current Liabilities was $5,305 Mil.
Long-Term Debt was $3,759 Mil.
Net Income was 7.204 + 67.444 + 41.828 + -20.367 = $96 Mil.
Non Operating Income was 2.894 + 1.498 + 0.746 + -38.011 = $-33 Mil.
Cash Flow from Operations was 362.899 + 260.05 + 113.151 + 78.055 = $814 Mil.
Accounts Receivable was $2,426 Mil.
Revenue was 4723.637 + 4549.578 + 4506.197 + 4210.468 = $17,990 Mil.
Gross Profit was 170.628 + 126.518 + 103.312 + 134.73 = $535 Mil.
Total Current Assets was $6,246 Mil.
Total Assets was $14,014 Mil.
Property, Plant and Equipment(Net PPE) was $699 Mil.
Depreciation, Depletion and Amortization(DDA) was $599 Mil.
Selling, General & Admin. Expense(SGA) was $114 Mil.
Total Current Liabilities was $4,836 Mil.
Long-Term Debt was $4,447 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)
=(2267.6 / 17410.825) / (2426.2 / 17989.88)
=0.13024081 / 0.13486471
=0.9657

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)
=(535.188 / 17989.88) / (642.824 / 17410.825)
=0.02974939 / 0.03692094
=0.8058

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 - (6000.771 + 644.992) / 13726.745) / (1 - (6246.085 + 699.322) / 14014.298)
=0.51585296 / 0.50440564
=1.0227

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
=17410.825 / 17989.88
=0.9678

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))
=(599.265 / (599.265 + 699.322)) / (398.73 / (398.73 + 644.992))
=0.46147466 / 0.38202701
=1.208

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)
=(115.088 / 17410.825) / (113.975 / 17989.88)
=0.00661014 / 0.00633551
=1.0433

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)
=((3758.966 + 5304.756) / 13726.745) / ((4446.527 + 4836.052) / 14014.298)
=0.66029652 / 0.66236489
=0.9969

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
=(96.109 - -32.873 - 814.155) / 13726.745
=-0.0499

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 -2.85 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 local exchange's currency.

AECOM Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
DSRI 0.96531.22360.89831.17070.89320.98450.4592.3740.42450.9657
GMI 0.96614.96190.96230.87311.1321.13120.93011.14391.62170.8058
AQI 0.91041.09231.01681.09391.10020.90471.03270.98411.2831.0227
SGI 1.23841.2261.1781.06971.22791.02250.99211.02492.15270.9678
DEPI 1.10761.25910.81641.15040.91961.05830.92851.0230.54781.208
SGAI 1.01520.05661.04511.18840.66570.87621.21240.81120.65441.0433
LVGI 0.73461.23770.88651.17730.96851.03111.05240.99971.19460.9969
TATA -0.01290.0017-0.01070.0130.024-0.0887-0.0305-0.0218-0.067-0.0529
M-score -2.320.18-2.47-2.30-2.09-2.84-3.21-1.19-1.91-2.86

AECOM Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.07612.3741.54151.23021.01980.42450.57920.36650.40970.9657
GMI 1.05741.14391.28441.52891.68771.62171.44651.03710.83360.8058
AQI 1.02080.98411.2911.24411.24651.2831.01610.98371.00091.0227
SGI 0.96521.02491.31191.66162.01042.15271.70321.35521.12530.9678
DEPI 1.05491.0231.19790.79220.64740.54780.43790.69190.91061.208
SGAI 1.01560.81120.70330.58030.57980.65440.69550.84060.95941.0433
LVGI 0.94840.99971.14971.22451.24951.19461.04581.0281.01020.9969
TATA -0.0184-0.0218-0.0334-0.0426-0.0539-0.067-0.0425-0.0428-0.044-0.0499
M-score -2.47-1.19-1.57-1.52-1.40-1.91-2.22-2.95-3.21-2.85
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