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AGCO Corp (NYSE:AGCO)
Beneish M-Score
-2.77 (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 -2.77 suggests that the company is not a manipulator.

AGCO' s 10-Year Beneish M-Score Range
Min: -3.62   Max: -2.02
Current: -2.77

-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 -2.52.


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 * 0.9994+0.528 * 1.0598+0.404 * 1.0887+0.892 * 0.8484+0.115 * 0.861
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0068+4.679 * -0.0405-0.327 * 1.0563
=-2.77

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $1,027 Mil.
Revenue was 1702.6 + 2485.2 + 2154.8 + 2750.3 = $9,093 Mil.
Gross Profit was 347.9 + 498 + 421.9 + 631.5 = $1,899 Mil.
Total Current Assets was $3,670 Mil.
Total Assets was $7,265 Mil.
Property, Plant and Equipment(Net PPE) was $1,390 Mil.
Depreciation, Depletion and Amortization(DDA) was $276 Mil.
Selling, General & Admin. Expense(SGA) was $940 Mil.
Total Current Liabilities was $2,081 Mil.
Long-Term Debt was $1,425 Mil.
Net Income was 30.1 + 77.6 + 65 + 168.2 = $341 Mil.
Non Operating Income was 9.8 + -14.9 + -10.1 + -12.9 = $-28 Mil.
Cash Flow from Operations was -286 + 653.7 + 38.9 + 256.8 = $663 Mil.
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 $1,100 Mil.
Total Current Liabilities was $2,786 Mil.
Long-Term Debt was $1,014 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)
=(1027.1 / 9092.9) / (1211.3 / 10717.2)
=0.11295626 / 0.11302392
=0.9994

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)
=(498 / 10717.2) / (347.9 / 9092.9)
=0.22136379 / 0.20887726
=1.0598

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 - (3669.8 + 1389.5) / 7264.5) / (1 - (4396.9 + 1603) / 8319.7)
=0.3035584 / 0.27883217
=1.0887

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
=9092.9 / 10717.2
=0.8484

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))
=(266.4 / (266.4 + 1603)) / (275.6 / (275.6 + 1389.5))
=0.14250562 / 0.16551558
=0.861

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)
=(939.6 / 9092.9) / (1100 / 10717.2)
=0.10333337 / 0.10263875
=1.0068

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)
=((1424.5 + 2080.8) / 7264.5) / ((1014.3 + 2786.3) / 8319.7)
=0.48252461 / 0.45681936
=1.0563

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
=(340.9 - -28.1 - 663.4) / 7264.5
=-0.0405

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 -2.77 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.8390.92860.98570.99880.93951.0160.96180.96481.13670.9994
GMI 0.94990.96490.98180.99020.96170.96840.98341.02391.04291.0598
AQI 0.93560.91860.90360.88940.89890.95720.98291.04671.151.0887
SGI 1.13551.09111.09071.08741.08281.0620.99710.94990.90140.8484
DEPI 0.88440.88330.94070.94691.00851.02031.01640.94720.89980.861
SGAI 1.05481.051.03190.98780.96570.9791.00281.02171.01431.0068
LVGI 0.910.94660.95610.96690.98040.97720.95151.01440.97791.0563
TATA -0.0142-0.0165-0.0428-0.0327-0.01890.00680.00980.0106-0.0002-0.0405
M-score -2.62-2.60-2.66-2.60-2.60-2.40-2.47-2.49-2.37-2.77
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