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AGCO Corp (NYSE:AGCO)
Beneish M-Score
-2.86 (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.

AGCO Corp has a M-score of -2.86 suggests that the company is not a manipulator.

AGCO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.62   Max: -2.02
Current: -2.86

-3.62
-2.02

During the past 13 years, the highest Beneish M-Score of AGCO Corp was -2.02. The lowest was -3.62. And the median was -2.53.


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 AGCO 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 * 1.1037+0.528 * 1.0289+0.404 * 1.0638+0.892 * 0.7916+0.115 * 0.957
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.056+4.679 * -0.0637-0.327 * 1.0685
=-2.86

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $947 Mil.
Revenue was 1736.4 + 2069.3 + 1702.6 + 2485.2 = $7,994 Mil.
Gross Profit was 365.7 + 449.6 + 347.9 + 498 = $1,661 Mil.
Total Current Assets was $3,501 Mil.
Total Assets was $7,072 Mil.
Property, Plant and Equipment(Net PPE) was $1,362 Mil.
Depreciation, Depletion and Amortization(DDA) was $264 Mil.
Selling, General & Admin. Expense(SGA) was $875 Mil.
Total Current Liabilities was $2,212 Mil.
Long-Term Debt was $1,230 Mil.
Net Income was 67.1 + 107.1 + 30.1 + 77.6 = $282 Mil.
Non Operating Income was 2.1 + 9.5 + 9.8 + -14.9 = $7 Mil.
Cash Flow from Operations was 44.2 + 314 + -286 + 653.7 = $726 Mil.
Accounts Receivable was $1,084 Mil.
Revenue was 2154.8 + 2750.3 + 2333.4 + 2859.7 = $10,098 Mil.
Gross Profit was 421.9 + 631.5 + 514.9 + 591 = $2,159 Mil.
Total Current Assets was $4,205 Mil.
Total Assets was $8,114 Mil.
Property, Plant and Equipment(Net PPE) was $1,525 Mil.
Depreciation, Depletion and Amortization(DDA) was $281 Mil.
Selling, General & Admin. Expense(SGA) was $1,046 Mil.
Total Current Liabilities was $2,364 Mil.
Long-Term Debt was $1,333 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)
=(946.7 / 7993.5) / (1083.6 / 10098.2)
=0.11843373 / 0.10730625
=1.1037

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)
=(449.6 / 10098.2) / (365.7 / 7993.5)
=0.21383019 / 0.20781885
=1.0289

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 - (3500.5 + 1361.5) / 7071.6) / (1 - (4205.4 + 1525.3) / 8113.9)
=0.31246111 / 0.29371819
=1.0638

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
=7993.5 / 10098.2
=0.7916

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))
=(280.5 / (280.5 + 1525.3)) / (263.8 / (263.8 + 1361.5))
=0.15533282 / 0.1623085
=0.957

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)
=(874.5 / 7993.5) / (1046.2 / 10098.2)
=0.10940139 / 0.10360262
=1.056

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)
=((1230.2 + 2212.2) / 7071.6) / ((1332.8 + 2363.6) / 8113.9)
=0.48679224 / 0.45556391
=1.0685

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
=(281.9 - 6.5 - 725.9) / 7071.6
=-0.0637

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.

AGCO Corp has a M-score of -2.86 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.

AGCO Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.77071.03540.9010.86251.14951.18370.83970.8390.93951.1367
GMI 1.05481.00350.97870.97981.08220.90130.90150.94990.96171.0429
AQI 1.03940.89820.97130.83791.1670.95421.27730.93560.89891.15
SGI 1.03350.99731.25631.23380.77351.05831.27211.13551.08280.9014
DEPI 1.01040.9971.0570.98431.17070.91391.15060.88441.00850.8998
SGAI 1.01320.84550.91940.93381.131.03780.98741.05480.96571.0143
LVGI 0.93190.98250.92831.05810.80821.02041.14960.910.98040.9779
TATA -0.0525-0.0803-0.04480.0231-0.038-0.0372-0.017-0.0142-0.01890.0029
M-score -2.84-2.83-2.53-2.38-2.55-2.53-2.43-2.62-2.60-2.35

AGCO Corp Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.98570.99880.93951.0160.96180.96481.13670.99941.05161.1037
GMI 0.98180.99020.96170.96840.98341.02391.04291.05981.07821.0289
AQI 0.90360.88940.89890.95720.98291.04671.151.08871.10121.0638
SGI 1.09071.08741.08281.0620.99710.94990.90140.84840.80730.7916
DEPI 0.94070.94691.00851.02031.01640.94720.89980.8610.90670.957
SGAI 1.03190.98780.96570.9791.00281.02171.01431.00681.01871.056
LVGI 0.95610.96690.98040.97720.95151.01440.97791.05631.07931.0685
TATA -0.0428-0.0327-0.01890.00680.00680.0074-0.0037-0.0441-0.0582-0.0637
M-score -2.66-2.60-2.60-2.40-2.48-2.51-2.38-2.79-2.83-2.86
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