AKS has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 13 years, the highest Beneish M-Score of AK Steel Holding Corp was -0.80. The lowest was -4.27. And the median was -2.59.
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 AK Steel Holding 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 * 0.8872||+||0.528 * 0.7194||+||0.404 * 1.3079||+||0.892 * 0.8908||+||0.115 * 0.9788|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.7649||+||4.679 * -0.1278||-||0.327 * 0.939|
|This Year (Jun16) TTM:||Last Year (Jun15) TTM:|
|Accounts Receivable was $449 Mil.|
Revenue was 1492.2 + 1518.8 + 1542.7 + 1709.9 = $6,264 Mil.
Gross Profit was 167.2 + 153.3 + 222.9 + 185.5 = $729 Mil.
Total Current Assets was $1,552 Mil.
Total Assets was $3,918 Mil.
Property, Plant and Equipment(Net PPE) was $2,029 Mil.
Depreciation, Depletion and Amortization(DDA) was $232 Mil.
Selling, General & Admin. Expense(SGA) was $355 Mil.
Total Current Liabilities was $887 Mil.
Long-Term Debt was $2,078 Mil.
Net Income was 17.3 + -13.6 + -145.4 + 6.7 = $-135 Mil.
Non Operating Income was 2.1 + -0.7 + -29.3 + 4.3 = $-24 Mil.
Cash Flow from Operations was 136.3 + 136.7 + 0.2 + 116.2 = $389 Mil.
|Accounts Receivable was $568 Mil.
Revenue was 1689.4 + 1750.9 + 1997.6 + 1593.8 = $7,032 Mil.
Gross Profit was 110.2 + 142.3 + 181.3 + 154.9 = $589 Mil.
Total Current Assets was $1,914 Mil.
Total Assets was $4,335 Mil.
Property, Plant and Equipment(Net PPE) was $2,136 Mil.
Depreciation, Depletion and Amortization(DDA) was $238 Mil.
Selling, General & Admin. Expense(SGA) was $226 Mil.
Total Current Liabilities was $1,051 Mil.
Long-Term Debt was $2,443 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(448.5 / 6263.6)||/||(567.5 / 7031.7)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(588.7 / 7031.7)||/||(728.9 / 6263.6)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (1551.6 + 2029.1) / 3918.3)||/||(1 - (1914.3 + 2135.5) / 4335.4)|
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.
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))|
|=||(237.9 / (237.9 + 2135.5))||/||(231.5 / (231.5 + 2029.1))|
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)|
|=||(355.3 / 6263.6)||/||(226 / 7031.7)|
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)|
|=||((2078.1 + 886.6) / 3918.3)||/||((2442.5 + 1050.9) / 4335.4)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-135 - -23.6||-||389.4)||/||3918.3|
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.
AK Steel Holding Corp has a M-score of -3.42 suggests that the company will not be a manipulator.
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
AK Steel Holding Corp Annual Data
AK Steel Holding Corp Quarterly Data