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AGCO Corp (NYSE:AGCO)
Beneish M-Score
-2.74 (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 -2.74 suggests that the company is not a manipulator.

AGCO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.01   Max: -2.07
Current: -2.74

-3.01
-2.07

During the past 13 years, the highest Beneish M-Score of AGCO Corp was -2.07. The lowest was -3.01. And the median was -2.58.


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 * 1.1306+0.528 * 1.0168+0.404 * 1.0116+0.892 * 0.7679+0.115 * 0.9568
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.115+4.679 * -0.0275-0.327 * 1.0981
=-2.74

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $837 Mil.
Revenue was 1959 + 1736.4 + 2069.3 + 1702.6 = $7,467 Mil.
Gross Profit was 397.4 + 365.7 + 449.6 + 347.9 = $1,561 Mil.
Total Current Assets was $2,898 Mil.
Total Assets was $6,501 Mil.
Property, Plant and Equipment(Net PPE) was $1,347 Mil.
Depreciation, Depletion and Amortization(DDA) was $260 Mil.
Selling, General & Admin. Expense(SGA) was $852 Mil.
Total Current Liabilities was $2,185 Mil.
Long-Term Debt was $929 Mil.
Net Income was 62.1 + 67.1 + 107.1 + 30.1 = $266 Mil.
Non Operating Income was -19.1 + 2.1 + -32.1 + -30.2 = $-79 Mil.
Cash Flow from Operations was 452 + 44.2 + 314 + -286 = $524 Mil.
Accounts Receivable was $964 Mil.
Revenue was 2485.2 + 2154.8 + 2750.3 + 2333.4 = $9,724 Mil.
Gross Profit was 498 + 421.9 + 631.5 + 514.9 = $2,066 Mil.
Total Current Assets was $3,311 Mil.
Total Assets was $7,369 Mil.
Property, Plant and Equipment(Net PPE) was $1,530 Mil.
Depreciation, Depletion and Amortization(DDA) was $280 Mil.
Selling, General & Admin. Expense(SGA) was $995 Mil.
Total Current Liabilities was $2,217 Mil.
Long-Term Debt was $998 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)
=(836.8 / 7467.3) / (963.8 / 9723.7)
=0.11206192 / 0.09911865
=1.1306

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)
=(365.7 / 9723.7) / (397.4 / 7467.3)
=0.21250141 / 0.2089912
=1.0168

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 - (2898.3 + 1347.1) / 6501.3) / (1 - (3310.7 + 1530.4) / 7368.8)
=0.34699214 / 0.34302736
=1.0116

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
=7467.3 / 9723.7
=0.7679

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))
=(280.4 / (280.4 + 1530.4)) / (260.1 / (260.1 + 1347.1))
=0.15484869 / 0.16183425
=0.9568

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 / 7467.3) / (995.4 / 9723.7)
=0.11413764 / 0.10236844
=1.115

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)
=((928.8 + 2185.4) / 6501.3) / ((997.6 + 2216.9) / 7368.8)
=0.47901189 / 0.43623114
=1.0981

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
=(266.4 - -79.3 - 524.2) / 6501.3
=-0.0275

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 -2.74 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 -0.01890.01280.01950.02070.0109-0.0307-0.0473-0.0522-0.0275-0.0226
M-score -2.60-2.37-2.42-2.44-2.28-2.73-2.78-2.81-2.74-2.61
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