ARG 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 Airgas Inc was -0.87. The lowest was -3.95. And the median was -2.67.
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 Airgas Inc 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 * 0.9612||+||0.528 * 1.0035||+||0.404 * 0.9791||+||0.892 * 1.046||+||0.115 * 0.9916|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.9998||+||4.679 * -0.0631||-||0.327 * 0.9588|
|This Year (Jun15) TTM:||Last Year (Jun14) TTM:|
|Accounts Receivable was $719 Mil.|
Revenue was 1349.71 + 1301.723 + 1331.82 + 1357.755 = $5,341 Mil.
Gross Profit was 752.544 + 718.721 + 742.887 + 757.221 = $2,971 Mil.
Total Current Assets was $1,403 Mil.
Total Assets was $6,055 Mil.
Property, Plant and Equipment(Net PPE) was $3,026 Mil.
Depreciation, Depletion and Amortization(DDA) was $335 Mil.
Selling, General & Admin. Expense(SGA) was $1,998 Mil.
Total Current Liabilities was $1,468 Mil.
Long-Term Debt was $1,525 Mil.
Net Income was 88.235 + 87.723 + 93.199 + 98.312 = $367 Mil.
Non Operating Income was 1.425 + 3.363 + -0.238 + 0.081 = $5 Mil.
Cash Flow from Operations was 223.743 + 203.353 + 172.766 + 144.946 = $745 Mil.
|Accounts Receivable was $715 Mil.
Revenue was 1313.587 + 1267.83 + 1242.846 + 1281.97 = $5,106 Mil.
Gross Profit was 730.181 + 696.481 + 705.176 + 718.958 = $2,851 Mil.
Total Current Assets was $1,421 Mil.
Total Assets was $5,872 Mil.
Property, Plant and Equipment(Net PPE) was $2,841 Mil.
Depreciation, Depletion and Amortization(DDA) was $311 Mil.
Selling, General & Admin. Expense(SGA) was $1,910 Mil.
Total Current Liabilities was $1,020 Mil.
Long-Term Debt was $2,009 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)|
|=||(718.856 / 5341.008)||/||(714.977 / 5106.233)|
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)|
|=||(718.721 / 5106.233)||/||(752.544 / 5341.008)|
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 - (1403.327 + 3026.338) / 6054.777)||/||(1 - (1421.131 + 2841.217) / 5872.084)|
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))|
|=||(311.434 / (311.434 + 2841.217))||/||(334.861 / (334.861 + 3026.338))|
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)|
|=||(1997.737 / 5341.008)||/||(1910.361 / 5106.233)|
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)|
|=||((1525.442 + 1468.115) / 6054.777)||/||((2008.526 + 1019.55) / 5872.084)|
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|
|=||(367.469 - 4.631||-||744.808)||/||6054.777|
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.
Airgas Inc has a M-score of -2.76 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
Airgas Inc Annual Data
Airgas Inc Quarterly Data