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Aecom (NYSE:ACM)
Beneish M-Score
-1.44 (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 -1.44 signals that the company is a manipulator.

ACM' s 10-Year Beneish M-Score Range
Min: -3.21   Max: 0.17
Current: -1.44

-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 * 1.0214+0.528 * 1.5901+0.404 * 1.2465+0.892 * 2.0073+0.115 * 0.6474
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.5806+4.679 * -0.0514-0.327 * 1.2495
=-1.44

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $4,985 Mil.
Revenue was 4549.578 + 4506.197 + 4186.035 + 2562.529 = $15,804 Mil.
Gross Profit was 126.518 + 103.312 + 164.223 + 129.031 = $523 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.
Net Income was -17.192 + 0.266 + -103.503 + 64.026 = $-56 Mil.
Non Operating Income was 10.128 + -1.038 + 2.579 + 1.892 = $14 Mil.
Cash Flow from Operations was 153.802 + 49.96 + 282.642 + 174.916 = $661 Mil.
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 $89 Mil.
Total Current Liabilities was $2,054 Mil.
Long-Term Debt was $977 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)
=(4985.309 / 15804.339) / (2431.517 / 7873.341)
=0.31543926 / 0.30882912
=1.0214

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)
=(103.312 / 7873.341) / (126.518 / 15804.339)
=0.05262798 / 0.03309749
=1.5901

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 - (6227.37 + 751.118) / 14236.126) / (1 - (3121.81 + 278.78) / 5753.742)
=0.50980428 / 0.40897767
=1.2465

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
=15804.339 / 7873.341
=2.0073

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))
=(93.505 / (93.505 + 278.78)) / (476.068 / (476.068 + 751.118))
=0.2511651 / 0.38793467
=0.6474

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)
=(104.1 / 15804.339) / (89.314 / 7873.341)
=0.0065868 / 0.01134385
=0.5806

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)
=((4602.483 + 4767.207) / 14236.126) / ((976.963 + 2053.86) / 5753.742)
=0.6581629 / 0.52675685
=1.2495

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
=(-56.403 - 13.561 - 661.32) / 14236.126
=-0.0514

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 -1.44 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.91490.95390.4590.9851.03091.07611.05181.54511.23251.0214
GMI 0.98550.91030.93010.89730.96451.05741.14391.20421.4371.5901
AQI 0.92990.94321.03271.03331.06761.02080.98411.2911.24411.2465
SGI 0.99760.98840.99210.98580.97410.96521.02491.30891.65852.0073
DEPI 0.98550.8990.92850.95010.96881.05491.0231.4890.79220.6474
SGAI 1.02451.11051.21241.24991.1491.01560.81120.70490.58140.5806
LVGI 1.07331.10191.05241.00050.96110.94840.99971.14971.22451.2495
TATA -0.1141-0.0977-0.0305-0.0384-0.0214-0.0184-0.0218-0.031-0.0401-0.0514
M-score -3.16-3.12-3.21-2.78-2.58-2.47-2.41-1.56-1.56-1.44
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