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AGCO Corp (NYSE:AGCO)
Beneish M-Score
-2.48 (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 -2.48 suggests that the company is not a manipulator.

AGCO' s 10-Year Beneish M-Score Range
Min: -3.61   Max: -1.95
Current: -2.48

-3.61
-1.95

During the past 13 years, the highest Beneish M-Score of AGCO Corp was -1.95. The lowest was -3.61. 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 * 0.9648+0.528 * 1.0239+0.404 * 1.0467+0.892 * 0.9499+0.115 * 0.9472
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0217+4.679 * 0.0134-0.327 * 1.0144
=-2.48

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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.
Net Income was 65 + 168.2 + 99.6 + 139.3 = $472 Mil.
Non Operating Income was -10.1 + -12.9 + -11.2 + -14.9 = $-49 Mil.
Cash Flow from Operations was 38.9 + 256.8 + -511 + 628 = $413 Mil.
Accounts Receivable was $1,182 Mil.
Revenue was 2475.9 + 3048.2 + 2403.1 + 2703.4 = $10,631 Mil.
Gross Profit was 556.2 + 710.3 + 533.1 + 527.8 = $2,327 Mil.
Total Current Assets was $4,504 Mil.
Total Assets was $8,334 Mil.
Property, Plant and Equipment(Net PPE) was $1,491 Mil.
Depreciation, Depletion and Amortization(DDA) was $257 Mil.
Selling, General & Admin. Expense(SGA) was $1,078 Mil.
Total Current Liabilities was $2,742 Mil.
Long-Term Debt was $1,001 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)
=(1083.6 / 10098.2) / (1182.3 / 10630.6)
=0.10730625 / 0.11121668
=0.9648

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)
=(631.5 / 10630.6) / (421.9 / 10098.2)
=0.21893402 / 0.21383019
=1.0239

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 - (4205.4 + 1525.3) / 8113.9) / (1 - (4503.9 + 1491.4) / 8334)
=0.29371819 / 0.28062155
=1.0467

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
=10098.2 / 10630.6
=0.9499

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))
=(257.3 / (257.3 + 1491.4)) / (280.5 / (280.5 + 1525.3))
=0.14713787 / 0.15533282
=0.9472

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)
=(1046.2 / 10098.2) / (1078 / 10630.6)
=0.10360262 / 0.10140538
=1.0217

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)
=((1332.8 + 2363.6) / 8113.9) / ((1000.6 + 2742) / 8334)
=0.45556391 / 0.44907607
=1.0144

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
=(472.1 - -49.1 - 412.7) / 8113.9
=0.0134

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 -2.48 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 0.98560.77071.03540.9010.86251.13991.19370.86030.8190.9395
GMI 0.97591.05481.00350.97870.97981.10050.88630.90150.94990.9617
AQI 1.19141.03940.89820.97130.83791.14370.97361.27730.93560.8989
SGI 1.50871.03350.99731.25631.23380.7871.04011.27211.13551.0828
DEPI 0.82181.01040.9971.02651.01361.13040.94651.15060.88441.0085
SGAI 1.0091.01320.84550.91940.93381.11061.0560.98741.05480.9657
LVGI 1.01140.93190.98250.92831.08130.79911.00991.14960.910.9804
TATA -0.0246-0.0525-0.0803-0.05120.026-0.0383-0.0372-0.017-0.0142-0.0189
M-score -2.12-2.84-2.83-2.56-2.37-2.55-2.53-2.41-2.64-2.60

AGCO Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.93771.03880.8190.92860.98570.99880.93951.0160.96180.9648
GMI 0.91790.90970.94990.96490.98180.99020.96170.96840.98341.0239
AQI 1.2811.29650.93560.91860.90360.88940.89890.95720.98291.0467
SGI 1.20031.16061.13551.09111.09071.08741.08281.0620.99710.9499
DEPI 0.92410.97910.88440.88330.94070.94691.00851.02031.01640.9472
SGAI 1.03891.05151.05491.05011.03180.98770.96560.97891.00281.0217
LVGI 1.14871.11530.910.94660.95610.96690.98040.97720.95151.0144
TATA 0.03640.041-0.0142-0.0165-0.0428-0.0327-0.01890.00950.01250.0134
M-score -2.18-2.09-2.64-2.60-2.66-2.60-2.60-2.39-2.46-2.48
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