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AGCO Corp (NYSE:AGCO)
Beneish M-Score
-2.39 (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 -2.39 suggests that the company is not a manipulator.

AGCO' s 10-Year Beneish M-Score Range
Min: -3.62   Max: -2.02
Current: -2.39

-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 * 1.016+0.528 * 0.9684+0.404 * 0.9572+0.892 * 1.062+0.115 * 1.0203
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9883+4.679 * 0.0095-0.327 * 0.9772
=-2.39

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $1,211 Mil.
Revenue was 2333.4 + 2859.7 + 2475.9 + 3048.2 = $10,717 Mil.
Gross Profit was 514.9 + 591 + 556.2 + 710.3 = $2,372 Mil.
Total Current Assets was $4,397 Mil.
Total Assets was $8,320 Mil.
Property, Plant and Equipment(Net PPE) was $1,603 Mil.
Depreciation, Depletion and Amortization(DDA) was $266 Mil.
Selling, General & Admin. Expense(SGA) was $1,536 Mil.
Total Current Liabilities was $2,786 Mil.
Long-Term Debt was $1,014 Mil.
Net Income was 99.6 + 139.3 + 126.2 + 213.7 = $579 Mil.
Non Operating Income was -11.2 + -14.9 + -11.3 + -10.2 = $-48 Mil.
Cash Flow from Operations was -511 + 628 + 104 + 326.3 = $547 Mil.
Accounts Receivable was $1,123 Mil.
Revenue was 2403.1 + 2703.4 + 2295 + 2690.1 = $10,092 Mil.
Gross Profit was 533.1 + 527.8 + 491 + 611.4 = $2,163 Mil.
Total Current Assets was $4,272 Mil.
Total Assets was $7,992 Mil.
Property, Plant and Equipment(Net PPE) was $1,391 Mil.
Depreciation, Depletion and Amortization(DDA) was $237 Mil.
Selling, General & Admin. Expense(SGA) was $1,463 Mil.
Total Current Liabilities was $2,581 Mil.
Long-Term Debt was $1,155 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)
=(1211.3 / 10717.2) / (1122.6 / 10091.6)
=0.11302392 / 0.11124103
=1.016

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)
=(591 / 10091.6) / (514.9 / 10717.2)
=0.2143664 / 0.22136379
=0.9684

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 - (4396.9 + 1603) / 8319.7) / (1 - (4272.3 + 1391.2) / 7991.5)
=0.27883217 / 0.29130952
=0.9572

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
=10717.2 / 10091.6
=1.062

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))
=(236.7 / (236.7 + 1391.2)) / (266.4 / (266.4 + 1603))
=0.14540205 / 0.14250562
=1.0203

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)
=(1535.6 / 10717.2) / (1463.1 / 10091.6)
=0.14328369 / 0.14498197
=0.9883

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)
=((1014.3 + 2786.3) / 8319.7) / ((1155.1 + 2580.8) / 7991.5)
=0.45681936 / 0.4674842
=0.9772

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
=(578.8 - -47.6 - 547.3) / 8319.7
=0.0095

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 -2.39 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.98560.77071.03540.9010.86251.14951.18370.83970.8390.9395
GMI 0.97591.05481.00350.97870.97981.08220.90130.90150.94990.9617
AQI 1.19141.03940.89820.97130.83791.1670.95421.27730.93560.8989
SGI 1.50871.03350.99731.25631.23380.77351.05831.27211.13551.0828
DEPI 0.82181.01040.9971.0570.98431.17070.91391.15060.88441.0085
SGAI 1.0091.01320.84550.91940.93381.131.03780.98741.3760.9805
LVGI 1.01140.93190.98250.92831.05810.80821.02041.14960.910.9804
TATA -0.0246-0.0525-0.0803-0.04480.0231-0.038-0.0372-0.017-0.0142-0.0189
M-score -2.12-2.84-2.83-2.53-2.38-2.55-2.53-2.43-2.67-2.60

AGCO Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.83970.86230.93771.03880.8390.92860.98570.99880.93951.016
GMI 0.90150.91230.91790.90970.94990.96490.98180.99020.96170.9684
AQI 1.27731.2381.2811.29650.93560.91860.90360.88940.89890.9572
SGI 1.27211.25561.20031.16061.13551.09111.09071.08741.08281.062
DEPI 1.15061.01740.92410.97910.88440.88330.94070.94691.00851.0203
SGAI 0.98741.02181.03881.05141.3761.4521.4181.35911.04040.9883
LVGI 1.14961.18061.14871.11530.910.94660.95610.96690.98040.9772
TATA -0.0170.00410.03640.041-0.0142-0.0165-0.0428-0.0327-0.01890.0095
M-score -2.43-2.37-2.18-2.09-2.67-2.67-2.73-2.66-2.61-2.39
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