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AGCO Corp (NYSE:AGCO)
Beneish M-Score
-2.61 (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 -2.61 suggests that the company is not a manipulator.

AGCO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.61   Max: -2.01
Current: -2.61

-3.61
-2.01

During the past 13 years, the highest Beneish M-Score of AGCO Corp was -2.01. The lowest was -3.61. And the median was -2.54.


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 * 1.1393+0.528 * 1.0016+0.404 * 1.1253+0.892 * 0.8055+0.115 * 1.0373
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1262+4.679 * -0.0226-0.327 * 1.0459
=-2.61

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $943 Mil.
Revenue was 1559.3 + 1959 + 1736.4 + 2069.3 = $7,324 Mil.
Gross Profit was 314.7 + 397.4 + 365.7 + 449.6 = $1,527 Mil.
Total Current Assets was $3,213 Mil.
Total Assets was $6,976 Mil.
Property, Plant and Equipment(Net PPE) was $1,380 Mil.
Depreciation, Depletion and Amortization(DDA) was $262 Mil.
Selling, General & Admin. Expense(SGA) was $852 Mil.
Total Current Liabilities was $2,263 Mil.
Long-Term Debt was $1,258 Mil.
Net Income was 7.8 + 62.1 + 67.1 + 107.1 = $244 Mil.
Non Operating Income was -11.3 + -19.1 + 2.1 + -32.1 = $-60 Mil.
Cash Flow from Operations was -348.2 + 452 + 44.2 + 314 = $462 Mil.
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.



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)
=(942.5 / 7324) / (1027.1 / 9092.9)
=0.12868651 / 0.11295626
=1.1393

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)
=(1899.3 / 9092.9) / (1527.4 / 7324)
=0.20887726 / 0.20854724
=1.0016

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 - (3213.1 + 1380) / 6976.2) / (1 - (3669.8 + 1389.5) / 7264.5)
=0.34160431 / 0.3035584
=1.1253

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
=7324 / 9092.9
=0.8055

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))
=(275.6 / (275.6 + 1389.5)) / (262 / (262 + 1380))
=0.16551558 / 0.15956151
=1.0373

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)
=(852.3 / 7324) / (939.6 / 9092.9)
=0.11637084 / 0.10333337
=1.1262

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)
=((1257.5 + 2263.3) / 6976.2) / ((1424.5 + 2080.8) / 7264.5)
=0.50468737 / 0.48252461
=1.0459

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
=(244.1 - -60.4 - 462) / 6976.2
=-0.0226

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 -2.61 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.03540.9010.86251.12981.20440.83970.8390.93951.13671.1306
GMI 1.00350.97870.97981.10050.88630.90150.94990.96171.04291.0168
AQI 0.89820.97130.83791.1670.95421.27730.93560.89891.24811.0116
SGI 0.99731.25631.23380.7871.04011.27211.13551.08280.90140.7679
DEPI 0.9971.02651.01361.09620.9761.15060.88441.00850.89980.9568
SGAI 0.84550.91940.93381.11061.0560.98741.05480.96571.01431.115
LVGI 0.98250.92831.05810.80821.02041.14960.910.98040.98151.0981
TATA -0.1153-0.04480.026-0.0388-0.0372-0.017-0.0142-0.01890.0029-0.0341
M-score -3.00-2.53-2.36-2.56-2.53-2.43-2.62-2.60-2.31-2.77

AGCO Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.93951.0160.96180.96481.13670.99941.05161.10371.13061.1393
GMI 0.96170.96840.98341.02391.04291.05981.07821.02891.01681.0016
AQI 0.89890.95720.98291.04671.24811.08871.10121.06381.01161.1253
SGI 1.08281.0620.99710.94990.90140.84840.80730.79160.76790.8055
DEPI 1.00851.02031.01640.94720.89980.8610.90670.9570.95681.0373
SGAI 0.96570.9791.00281.02171.01431.00681.01871.0561.1151.1262
LVGI 0.98040.97720.95151.01440.98151.05631.07931.06851.09811.0459
TATA -0.01890.01280.01950.02070.0109-0.0335-0.0501-0.0551-0.0306-0.0226
M-score -2.60-2.37-2.42-2.44-2.28-2.74-2.80-2.82-2.75-2.61
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