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AGCO Corp (NYSE:AGCO)
Beneish M-Score
-2.46 (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 -2.46 suggests that the company is not a manipulator.

AGCO' s 10-Year Beneish M-Score Range
Min: -3.62   Max: -2.02
Current: -2.46

-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 * 0.9618+0.528 * 0.9834+0.404 * 0.9829+0.892 * 0.9971+0.115 * 1.0164
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0028+4.679 * 0.0125-0.327 * 0.9515
=-2.46

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
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.
Net Income was 168.2 + 99.6 + 139.3 + 126.2 = $533 Mil.
Non Operating Income was -12.9 + -11.2 + -14.9 + -11.3 = $-50 Mil.
Cash Flow from Operations was 256.8 + -511 + 628 + 104 = $478 Mil.
Accounts Receivable was $1,286 Mil.
Revenue was 3048.2 + 2403.1 + 2703.4 + 2295 = $10,450 Mil.
Gross Profit was 710.3 + 533.1 + 527.8 + 491 = $2,262 Mil.
Total Current Assets was $4,517 Mil.
Total Assets was $8,235 Mil.
Property, Plant and Equipment(Net PPE) was $1,411 Mil.
Depreciation, Depletion and Amortization(DDA) was $245 Mil.
Selling, General & Admin. Expense(SGA) was $1,083 Mil.
Total Current Liabilities was $2,775 Mil.
Long-Term Debt was $1,078 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)
=(1233.4 / 10419.3) / (1286.1 / 10449.7)
=0.11837647 / 0.1230753
=0.9618

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)
=(514.9 / 10449.7) / (631.5 / 10419.3)
=0.21648468 / 0.22012995
=0.9834

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 - (4533.6 + 1603.5) / 8469.3) / (1 - (4517 + 1410.9) / 8235)
=0.27537105 / 0.28015786
=0.9829

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
=10419.3 / 10449.7
=0.9971

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))
=(245 / (245 + 1410.9)) / (273.2 / (273.2 + 1603.5))
=0.14795579 / 0.14557468
=1.0164

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)
=(1082.6 / 10419.3) / (1082.7 / 10449.7)
=0.10390333 / 0.10361063
=1.0028

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)
=((979.2 + 2790.7) / 8469.3) / ((1077.5 + 2775.1) / 8235)
=0.44512534 / 0.46783242
=0.9515

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
=(533.3 - -50.3 - 477.8) / 8469.3
=0.0125

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 -2.46 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 0.98560.77071.03540.9010.86251.14951.18370.83970.8390.9395
GMI 0.97591.05481.00350.97870.97981.08220.90130.90150.94990.9617
AQI 1.19141.03940.89820.97130.83791.1670.95421.27730.93560.8989
SGI 1.50871.03350.99731.25631.23380.77351.05831.27211.13551.0828
DEPI 0.82181.01040.9971.0570.98431.17070.91391.15060.88441.0085
SGAI 1.0091.01320.84550.91940.93381.131.03780.98741.05480.9657
LVGI 1.01140.93190.98250.92831.05810.80821.02041.14960.910.9804
TATA -0.0246-0.0525-0.0803-0.04480.0231-0.038-0.0372-0.017-0.0142-0.0189
M-score -2.12-2.84-2.83-2.53-2.38-2.55-2.53-2.43-2.62-2.60

AGCO Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.86230.93771.03880.8390.92860.98570.99880.93951.0160.9618
GMI 0.91230.91790.90970.94990.96490.98180.99020.96170.96840.9834
AQI 1.2381.2811.29650.93560.91860.90360.88940.89890.95720.9829
SGI 1.25561.20031.16061.13551.09111.09071.08741.08281.0620.9971
DEPI 1.01740.92410.97910.88440.88330.94070.94691.00851.02031.0164
SGAI 1.02181.03881.05141.05481.051.03190.98780.96570.9791.0028
LVGI 1.18061.14871.11530.910.94660.95610.96690.98040.97720.9515
TATA 0.00410.03640.041-0.0142-0.0165-0.0428-0.0327-0.01890.00950.0125
M-score -2.37-2.18-2.09-2.62-2.60-2.66-2.60-2.60-2.39-2.46
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