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AGCO Corp (NYSE:AGCO)
Beneish M-Score
-2.83 (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 -2.83 suggests that the company is not a manipulator.

AGCO' s 10-Year Beneish M-Score Range
Min: -3.62   Max: -2.02
Current: -2.83

-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 * 1.0516+0.528 * 1.0782+0.404 * 1.1012+0.892 * 0.8073+0.115 * 0.9067
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0187+4.679 * -0.0582-0.327 * 1.0793
=-2.83

* 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 $1,047 Mil.
Revenue was 2069.3 + 1702.6 + 2485.2 + 2154.8 = $8,412 Mil.
Gross Profit was 449.6 + 347.9 + 498 + 421.9 = $1,717 Mil.
Total Current Assets was $3,790 Mil.
Total Assets was $7,470 Mil.
Property, Plant and Equipment(Net PPE) was $1,415 Mil.
Depreciation, Depletion and Amortization(DDA) was $271 Mil.
Selling, General & Admin. Expense(SGA) was $890 Mil.
Total Current Liabilities was $2,373 Mil.
Long-Term Debt was $1,216 Mil.
Net Income was 107.1 + 30.1 + 77.6 + 65 = $280 Mil.
Non Operating Income was 9.5 + 9.8 + -14.9 + -10.1 = $-6 Mil.
Cash Flow from Operations was 314 + -286 + 653.7 + 38.9 = $721 Mil.
Accounts Receivable was $1,233 Mil.
Revenue was 2750.3 + 2333.4 + 2859.7 + 2475.9 = $10,419 Mil.
Gross Profit was 631.5 + 514.9 + 591 + 556.2 = $2,294 Mil.
Total Current Assets was $4,534 Mil.
Total Assets was $8,469 Mil.
Property, Plant and Equipment(Net PPE) was $1,604 Mil.
Depreciation, Depletion and Amortization(DDA) was $273 Mil.
Selling, General & Admin. Expense(SGA) was $1,083 Mil.
Total Current Liabilities was $2,791 Mil.
Long-Term Debt was $979 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)
=(1047.2 / 8411.9) / (1233.4 / 10419.3)
=0.12449031 / 0.11837647
=1.0516

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)
=(347.9 / 10419.3) / (449.6 / 8411.9)
=0.22012995 / 0.20416315
=1.0782

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 - (3789.6 + 1415.4) / 7470.4) / (1 - (4533.6 + 1603.5) / 8469.3)
=0.30325016 / 0.27537105
=1.1012

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
=8411.9 / 10419.3
=0.8073

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))
=(273.2 / (273.2 + 1603.5)) / (270.7 / (270.7 + 1415.4))
=0.14557468 / 0.16054801
=0.9067

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)
=(890.4 / 8411.9) / (1082.6 / 10419.3)
=0.10585005 / 0.10390333
=1.0187

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)
=((1215.5 + 2373.3) / 7470.4) / ((979.2 + 2790.7) / 8469.3)
=0.48040266 / 0.44512534
=1.0793

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
=(279.8 - -5.7 - 720.6) / 7470.4
=-0.0582

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 -2.83 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 0.77071.03540.9010.86251.13991.19370.86030.8190.93951.1367
GMI 1.05481.00350.97870.97981.10050.88630.90150.94990.96171.0429
AQI 1.03940.89820.97130.83791.14370.97361.27730.93560.89891.15
SGI 1.03350.99731.25631.23380.7871.04011.27211.13551.08280.9014
DEPI 1.01040.9971.0570.98431.13040.94651.15060.88441.00850.8998
SGAI 1.01320.84550.91940.93381.11061.0560.98741.05480.96571.0143
LVGI 0.93190.98250.92831.05810.81661.00991.14960.910.98040.9779
TATA -0.0525-0.0803-0.04480.0231-0.0383-0.0372-0.017-0.0142-0.01890.0029
M-score -2.84-2.83-2.53-2.38-2.55-2.53-2.41-2.64-2.60-2.35

AGCO Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.92860.98570.99880.93951.0160.96180.96481.13670.99941.0516
GMI 0.96490.98180.99020.96170.96840.98341.02391.04291.05981.0782
AQI 0.91860.90360.88940.89890.95720.98291.04671.151.08871.1012
SGI 1.09111.09071.08741.08281.0620.99710.94990.90140.84840.8073
DEPI 0.88330.94070.94691.00851.02031.01640.94720.89980.8610.9067
SGAI 1.05011.03180.98770.96560.97891.00281.02171.01431.00681.0187
LVGI 0.94660.95610.96690.98040.97720.95151.01440.97791.05631.0793
TATA -0.0165-0.0428-0.0327-0.01890.00680.00680.0074-0.0037-0.0441-0.0582
M-score -2.60-2.66-2.60-2.60-2.40-2.48-2.51-2.38-2.79-2.83
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